Beijing Enterprises Urban Resources Group Limited (HKG:3718) shareholders are probably feeling a little disappointed, since its shares fell 2.7% to HK$0.36 in the week after its latest yearly results. Statutory earnings per share fell badly short of expectations, coming in at CN¥0.0073, some 91% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at CN¥6.0b. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Beijing Enterprises Urban Resources Group after the latest results.
Following the latest results, Beijing Enterprises Urban Resources Group's two analysts are now forecasting revenues of CN¥6.39b in 2025. This would be an okay 6.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 870% to CN¥0.07. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥7.08b and earnings per share (EPS) of CN¥0.093 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a large cut to earnings per share estimates.
Check out our latest analysis for Beijing Enterprises Urban Resources Group
It'll come as no surprise then, to learn that the analysts have cut their price target 10% to HK$0.54.
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. It's pretty clear that there is an expectation that Beijing Enterprises Urban Resources Group's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 6.0% growth on an annualised basis. This is compared to a historical growth rate of 17% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.3% annually. Factoring in the forecast slowdown in growth, it looks like Beijing Enterprises Urban Resources Group is forecast to grow at about the same rate as 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. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Beijing Enterprises Urban Resources Group's future valuation.
With that in mind, we wouldn't be too quick to come to a conclusion on Beijing Enterprises Urban Resources Group. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Beijing Enterprises Urban Resources Group going out as far as 2027, and you can see them free on our platform here.
Plus, you should also learn about the 4 warning signs we've spotted with Beijing Enterprises Urban Resources Group (including 2 which are a bit unpleasant) .
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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.