China Overseas Property Holdings Limited (HKG:2669) Just Beat EPS By 20%: Here's What Analysts Are Forecasting For This Year
China Overseas Property Holdings Limited (HKG:2669) just released its interim report and things are looking bullish. Statutory earnings performance was extremely strong, with revenue of CN¥7.6b beating expectations by 21% and earnings per share (EPS) of CN¥0.22, an impressive 20%ahead of expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Following last week's earnings report, China Overseas Property Holdings' 14 analysts are forecasting 2026 revenues to be CN¥15.5b, approximately in line with the last 12 months. Statutory per share are forecast to be CN¥0.40, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of CN¥15.5b and earnings per share (EPS) of CN¥0.42 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.
Check out our latest analysis for China Overseas Property Holdings
It might be a surprise to learn that the consensus price target fell 5.3% to HK$4.27, with the analysts clearly linking lower forecast earnings to the performance of the stock price. 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 China Overseas Property Holdings at HK$5.50 per share, while the most bearish prices it at HK$2.90. 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. It's pretty clear that there is an expectation that China Overseas Property Holdings' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 2.9% growth on an annualised basis. This is compared to a historical growth rate of 14% 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) 1.3% per year. So it's pretty clear that, while China Overseas Property Holdings' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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 China Overseas Property Holdings' 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. At Simply Wall St, we have a full range of analyst estimates for China Overseas Property Holdings going out to 2028, and you can see them free on our platform here..
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
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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.