It's been a pretty great week for China Foods Limited (HKG:506) shareholders, with its shares surging 12% to HK$3.10 in the week since its latest yearly results. Results overall were respectable, with statutory earnings of CN¥0.31 per share roughly in line with what the analysts had forecast. Revenues of CN¥21b came in 2.0% ahead of analyst predictions. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the current consensus from China Foods' four analysts is for revenues of CN¥22.5b in 2025. This would reflect a reasonable 4.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 6.6% to CN¥0.33. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥21.9b and earnings per share (EPS) of CN¥0.33 in 2025. There doesn't appear to have been a major change in sentiment following the results, other than the slight bump in revenue estimates.
See our latest analysis for China Foods
It may not be a surprise to see thatthe analysts have reconfirmed their price target of HK$3.87, implying that the uplift in revenue is not expected to greatly contribute to China Foods's valuation in the near term. 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. There are some variant perceptions on China Foods, with the most bullish analyst valuing it at HK$4.86 and the most bearish at HK$3.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await China Foods shareholders.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 4.6% growth on an annualised basis. That is in line with its 5.0% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 9.2% annually. So although China Foods is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
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 China Foods going out to 2027, 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 China Foods 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.