Industry Analysts Just Upgraded Their Yinson Holdings Berhad (KLSE:YINSON) Revenue Forecasts By 29%
Celebrations may be in order for Yinson Holdings Berhad (KLSE:YINSON) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that Yinson Holdings Berhad will make substantially more sales than they'd previously expected.
Following the upgrade, the current consensus from Yinson Holdings Berhad's eight analysts is for revenues of RM7.2b in 2024 which - if met - would reflect a solid 13% increase on its sales over the past 12 months. Statutory earnings per share are presumed to jump 67% to RM0.26. Prior to this update, the analysts had been forecasting revenues of RM5.5b and earnings per share (EPS) of RM0.24 in 2024. The forecasts seem more optimistic now, with a great increase in revenue and a slight bump in earnings per share estimates.
View our latest analysis for Yinson Holdings Berhad
Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of RM3.78, suggesting that the forecast performance does not have a long term impact on the company's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Yinson Holdings Berhad at RM5.05 per share, while the most bearish prices it at RM3.12. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Yinson Holdings Berhad's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 13% growth on an annualised basis. This is compared to a historical growth rate of 35% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 0.7% per year. So it's pretty clear that, while Yinson Holdings Berhad's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Yinson Holdings Berhad.
Analysts are definitely bullish on Yinson Holdings Berhad, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including dilutive stock issuance over the past year. For more information, you can click through to our platform to learn more about this and the 2 other flags we've identified .
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here