The SJM Holdings Limited (HKG:880) Interim Results Are Out And Analysts Have Published New Forecasts
Last week, you might have seen that SJM Holdings Limited (HKG:880) released its interim result to the market. The early response was not positive, with shares down 6.3% to HK$1.41 in the past week. It was an okay report, and revenues came in at HK$12b, approximately in line with analyst estimates leading up to the results announcement. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the ten analysts covering SJM Holdings provided consensus estimates of HK$24.5b revenue in 2026, which would reflect a small 2.3% decline over the past 12 months. SJM Holdings is also expected to turn profitable, with statutory earnings of HK$0.0064 per share. In the lead-up to this report, the analysts had been modelling revenues of HK$24.6b and earnings per share (EPS) of HK$0.003 in 2026. Although the revenue estimates have not really changed, we can see there's been a considerable lift to earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.
View our latest analysis for SJM Holdings
There's been no major changes to the consensus price target of HK$2.02, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock'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 SJM Holdings, with the most bullish analyst valuing it at HK$7.15 and the most bearish at HK$1.30 per share. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.
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. We would highlight that revenue is expected to reverse, with a forecast 4.5% annualised decline to the end of 2026. That is a notable change from historical growth of 28% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 9.1% annually for the foreseeable future. It's pretty clear that SJM Holdings' revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards SJM Holdings following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at HK$2.02, 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 SJM Holdings analysts - going out to 2028, and you can see them free on our platform here.
You can also see whether SJM Holdings is carrying too much debt, and whether its balance sheet is healthy, for 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.