25-05-2025
Results: BM GreenTech Berhad Beat Earnings Expectations And Analysts Now Have New Forecasts
The yearly results for BM GreenTech Berhad (KLSE:BMGREEN) were released last week, making it a good time to revisit its performance. BM GreenTech Berhad reported RM562m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of RM0.089 beat expectations, being 6.5% higher than what the analysts expected. 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.
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Following the latest results, BM GreenTech Berhad's three analysts are now forecasting revenues of RM650.2m in 2026. This would be a meaningful 16% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 22% to RM0.093. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM640.1m and earnings per share (EPS) of RM0.085 in 2026. So the consensus seems to have become somewhat more optimistic on BM GreenTech Berhad's earnings potential following these results.
See our latest analysis for BM GreenTech Berhad
The consensus price target was unchanged at RM2.24, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic BM GreenTech Berhad analyst has a price target of RM2.50 per share, while the most pessimistic values it at RM1.72. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await BM GreenTech Berhad shareholders.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of BM GreenTech Berhad'shistorical trends, as the 16% annualised revenue growth to the end of 2026 is roughly in line with the 19% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 15% per year. So although BM GreenTech Berhad is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.
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 BM GreenTech Berhad following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for BM GreenTech Berhad going out to 2028, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 1 warning sign for BM GreenTech Berhad that you should be aware of.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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.
