Yahoo Finance Analyst Estimates: Here's What Brokers Think Of Hong Leong Financial Group Berhad (KLSE:HLFG) After Its Full-Year Report
Last week saw the newest yearly earnings release from Hong Leong Financial Group Berhad (KLSE:HLFG), an important milestone in the company's journey to build a stronger business. Revenues came in 3.4% below expectations, at RM6.3b. Statutory earnings per share were relatively better off, with a per-share profit of RM2.46 being roughly in line with analyst estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Check out our latest analysis for Hong Leong Financial Group Berhad
Taking into account the latest results, the consensus forecast from Hong Leong Financial Group Berhad's five analysts is for revenues of RM6.95b in 2024. This reflects a decent 10% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 6.5% to RM2.62. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM6.92b and earnings per share (EPS) of RM2.64 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at RM22.63. 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. The most optimistic Hong Leong Financial Group Berhad analyst has a price target of RM26.50 per share, while the most pessimistic values it at RM19.86. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
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 Financial Group Berhad's past performance and to peers in the same industry. It's clear from the latest estimates that Hong Leong Financial Group Berhad's rate of growth is expected to accelerate meaningfully, with the forecast 10% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 4.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.0% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Hong Leong Financial Group Berhad to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Hong Leong Financial Group Berhad going out to 2026, and you can see them free on our platform here.
We also provide an overview of the Hong Leong Financial Group Berhad Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.
