Yeahka Limited Just Missed EPS By 50%: Here's What Analysts Think Will Happen Next
Yeahka Limited (HKG:9923) last week reported its latest annual results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Statutory earnings per share fell badly short of expectations, coming in at CN¥0.23, some 50% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at CN¥3.3b. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the most recent consensus for Yeahka from four analysts is for revenues of CN¥3.54b in 2026. If met, it would imply a satisfactory 7.0% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 82% to CN¥0.38. In the lead-up to this report, the analysts had been modelling revenues of CN¥3.63b and earnings per share (EPS) of CN¥0.61 in 2026. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a large cut to earnings per share numbers.
Check out our latest analysis for Yeahka
It'll come as no surprise then, to learn that the analysts have cut their price target 16% to HK$11.26. 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 Yeahka, with the most bullish analyst valuing it at HK$15.87 and the most bearish at HK$8.94 per share. 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.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Yeahka's growth to accelerate, with the forecast 7.0% annualised growth to the end of 2026 ranking favourably alongside historical growth of 4.3% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 12% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Yeahka is expected to grow slower 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 Yeahka. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than 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 Yeahka's future valuation.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Yeahka going out to 2028, and you can see them free on our platform here.
It is also worth noting that we have found 1 warning sign for Yeahka that you need to take into consideration.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.