It's been a pretty great week for Pou Sheng International (Holdings) Limited (HKG:3813) shareholders, with its shares surging 16% to HK$0.37 in the week since its latest half-year results. Pou Sheng International (Holdings) reported in line with analyst predictions, delivering revenues of CN¥9.0b and statutory earnings per share of CN¥0.041, suggesting the business is executing well and in line with its plan. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the current consensus, from the four analysts covering Pou Sheng International (Holdings), is for revenues of CN¥16.1b in 2026. This implies a small 4.7% reduction in Pou Sheng International (Holdings)'s revenue over the past 12 months. Statutory per-share earnings are expected to be CN¥0.051, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of CN¥17.2b and earnings per share (EPS) of CN¥0.057 in 2026. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.
View our latest analysis for Pou Sheng International (Holdings)
It'll come as no surprise then, to learn that the analysts have cut their price target 7.4% to HK$0.57. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Pou Sheng International (Holdings) analyst has a price target of HK$0.72 per share, while the most pessimistic values it at HK$0.40. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. Over the past five years, revenues have declined around 7.3% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 9.2% decline in revenue until the end of 2026. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 8.7% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect Pou Sheng International (Holdings) to suffer worse than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Pou Sheng International (Holdings) going out to 2028, and you can see them free on our platform here..
You should always think about risks though. Case in point, we've spotted 1 warning sign for Pou Sheng International (Holdings) you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.