Bearish: Analysts Just Cut Their China Resources Beverage (Holdings) Company Limited (HKG:2460) Revenue and EPS estimates
Market forces rained on the parade of China Resources Beverage (Holdings) Company Limited (HKG:2460) shareholders today, when the analysts downgraded their forecasts for this year. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.
Following the latest downgrade, China Resources Beverage (Holdings)'s 14 analysts currently expect revenues in 2026 to be CN¥10b, approximately in line with the last 12 months. Statutory earnings per share are presumed to increase 8.1% to CN¥0.35. Before this latest update, the analysts had been forecasting revenues of CN¥12b and earnings per share (EPS) of CN¥0.45 in 2026. Indeed, we can see that the analysts are a lot more bearish about China Resources Beverage (Holdings)'s prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.
Check out our latest analysis for China Resources Beverage (Holdings)
It'll come as no surprise then, to learn that the analysts have cut their price target 12% to CN¥7.84. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values China Resources Beverage (Holdings) at CN¥11.16 per share, while the most bearish prices it at CN¥5.74. 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.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the China Resources Beverage (Holdings)'s past performance and to peers in the same industry. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2026 compared to the historical decline of 15% per annum over the past year. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 8.8% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect China Resources Beverage (Holdings) to suffer worse than the wider industry.
The Bottom Line
The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for China Resources Beverage (Holdings). Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.
Still, 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 Resources Beverage (Holdings) going out to 2028, and you can see them free 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.