The Hong Leong Bank Berhad (KLSE:HLBANK) Yearly Results Are Out And Analysts Have Published New Forecasts
It's been a good week for Hong Leong Bank Berhad (KLSE:HLBANK) shareholders, because the company has just released its latest full-year results, and the shares gained 2.6% to RM23.50. Hong Leong Bank Berhad reported RM6.6b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of RM2.20 beat expectations, being 2.2% higher than what the analysts expected. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the consensus forecast from Hong Leong Bank Berhad's 15 analysts is for revenues of RM7.13b in 2027. This reflects an okay 7.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 4.2% to RM2.30. Before this earnings report, the analysts had been forecasting revenues of RM7.10b and earnings per share (EPS) of RM2.30 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
View our latest analysis for Hong Leong Bank Berhad
The analysts reconfirmed their price target of RM26.60, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Hong Leong Bank Berhad, with the most bullish analyst valuing it at RM32.00 and the most bearish at RM22.50 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Hong Leong Bank Berhad's past performance and to peers in the same industry. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 7.9% growth on an annualised basis. That is in line with its 6.7% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 6.1% per year. So although Hong Leong Bank Berhad is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. 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 held steady at RM26.60, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Hong Leong Bank Berhad analysts - going out to 2029, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 1 warning sign for Hong Leong Bank Berhad that you should be aware of.
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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.