Last week, you might have seen that Flat Glass Group Co., Ltd. (HKG:6865) released its quarterly result to the market. The early response was not positive, with shares down 3.8% to HK$6.91 in the past week. Revenues of CN¥3.0b beat estimates by a substantial 44% margin, but unfortunately Flat Glass Group fell substantially short of earnings forecasts, reporting a statutory loss of CN¥0.18 per share, where the analysts had previously predicted a profit. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Flat Glass Group after the latest results.
Following the recent earnings report, the consensus from nine analysts covering Flat Glass Group is for revenues of CN¥12.6b in 2026. This implies a considerable 13% decline in revenue compared to the last 12 months. Statutory earnings per share are forecast to tumble 92% to CN¥0.013 in the same period. Before this earnings report, the analysts had been forecasting revenues of CN¥14.2b and earnings per share (EPS) of CN¥0.017 in 2026. It looks like sentiment has declined substantially in the aftermath of these results, with a real cut to revenue estimates and a large cut to earnings per share numbers as well.
See our latest analysis for Flat Glass Group
It'll come as no surprise then, to learn that the analysts have cut their price target 6.6% to HK$9.82. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Flat Glass Group at HK$13.51 per share, while the most bearish prices it at HK$5.70. 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. We would highlight that revenue is expected to reverse, with a forecast 25% annualised decline to the end of 2026. That is a notable change from historical growth of 9.8% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 17% annually for the foreseeable future. It's pretty clear that Flat Glass Group's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Flat Glass Group. 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. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Flat Glass Group's future valuation.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Flat Glass Group going out to 2028, and you can see them free on our platform here.
Before you take the next step you should know about the 1 warning sign for Flat Glass Group that we have uncovered.
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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.