23-02-2025
Sunway Construction Group Berhad Beat Revenue Forecasts By 13%: Here's What Analysts Are Forecasting Next
Sunway Construction Group Berhad (KLSE:SUNCON) investors will be delighted, with the company turning in some strong numbers with its latest results. It was a positive result, with revenues and statutory earnings per share (EPS) both performing well. Revenues were 13% higher than the analysts had forecast, at RM3.5b, while EPS of RM0.14 beat analyst models by 8.9%. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for Sunway Construction Group Berhad
Taking into account the latest results, the consensus forecast from Sunway Construction Group Berhad's 16 analysts is for revenues of RM4.60b in 2025. This reflects a major 30% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 48% to RM0.21. Before this earnings report, the analysts had been forecasting revenues of RM4.47b and earnings per share (EPS) of RM0.21 in 2025. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.
It will come as no surprise to learn that the analysts have increased their price target for Sunway Construction Group Berhad 6.3% to RM4.75on the back of these upgrades. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Sunway Construction Group Berhad analyst has a price target of RM5.70 per share, while the most pessimistic values it at RM2.50. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
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. It's clear from the latest estimates that Sunway Construction Group Berhad's rate of growth is expected to accelerate meaningfully, with the forecast 30% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 15% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 14% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Sunway Construction Group Berhad is expected to grow much faster than its industry.
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Sunway Construction Group Berhad's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Sunway Construction Group Berhad going out to 2027, and you can see them free on our platform here..
Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Sunway Construction Group 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.
