Investors in Lonking Holdings Limited (HKG:3339) had a good week, as its shares rose 9.9% to close at HK$3.55 following the release of its interim results. Lonking Holdings reported in line with analyst predictions, delivering revenues of CN¥6.7b and statutory earnings per share of CN¥0.18, suggesting the business is executing well and in line with its plan. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
After the latest results, the dual analysts covering Lonking Holdings are now predicting revenues of CN¥13.3b in 2026. If met, this would reflect a solid 8.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 4.8% to CN¥0.35. In the lead-up to this report, the analysts had been modelling revenues of CN¥12.7b and earnings per share (EPS) of CN¥0.32 in 2026. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.
View our latest analysis for Lonking Holdings
It will come as no surprise to learn that the analysts have increased their price target for Lonking Holdings 7.4% to HK$3.83on the back of these upgrades.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. For example, we noticed that Lonking Holdings' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 17% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 4.4% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 13% annually. Not only are Lonking Holdings' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Lonking Holdings' earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Lonking Holdings going out as far as 2028, and you can see them free on our platform here.
Even so, be aware that Lonking Holdings is showing 1 warning sign in our investment analysis , you should know about...
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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.