China International Capital Corporation Limited Just Beat Revenue Estimates By 56%
It's been a good week for China International Capital Corporation Limited (HKG:3908) shareholders, because the company has just released its latest quarterly results, and the shares gained 8.8% to HK$22.54. Revenue of CN¥17b beat expectations by an impressive 56%, while statutory earnings per share (EPS) were CN¥1.88, in line with estimates. 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.
After the latest results, the seven analysts covering China International Capital are now predicting revenues of CN¥41.5b in 2026. If met, this would reflect a notable 15% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 7.0% to CN¥2.87. Before this earnings report, the analysts had been forecasting revenues of CN¥36.9b and earnings per share (EPS) of CN¥2.72 in 2026. Sentiment certainly seems to have improved after the latest results, with a substantial gain in revenue and a small lift in earnings per share estimates.
View our latest analysis for China International Capital
Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of HK$30.35, suggesting that the forecast performance does not have a long term impact on the company's valuation. 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. There are some variant perceptions on China International Capital, with the most bullish analyst valuing it at HK$34.54 and the most bearish at HK$27.60 per share. This is a very narrow spread of estimates, implying either that China International Capital is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that China International Capital's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 31% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 3.8% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 7.6% annually. Not only are China International Capital's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around China International Capital's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at HK$30.35, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple China International Capital analysts - going out to 2028, and you can see them free on our platform here.
You can also see our analysis of China International Capital's Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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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.