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Malaysia Marine and Heavy Engineering Holdings Berhad (KLSE:MHB) last week reported its latest full-year results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Results overall weren't great; even though revenues of RM3.3b beat expectations by 19%, statutory losses ballooned to RM0.30 per share, substantially worse than the analysts had expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for Malaysia Marine and Heavy Engineering Holdings Berhad
After the latest results, the consensus from Malaysia Marine and Heavy Engineering Holdings Berhad's four analysts is for revenues of RM3.11b in 2024, which would reflect a perceptible 5.9% decline in revenue compared to the last year of performance. Earnings are expected to improve, with Malaysia Marine and Heavy Engineering Holdings Berhad forecast to report a statutory profit of RM0.029 per share. In the lead-up to this report, the analysts had been modelling revenues of RM2.93b and earnings per share (EPS) of RM0.03 in 2024. So it's pretty clear consensus is mixed on Malaysia Marine and Heavy Engineering Holdings Berhad after the latest results; whilethe analysts lifted revenue numbers, they also administered a minor downgrade to per-share earnings expectations.
There's been no major changes to the price target of RM0.64, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Malaysia Marine and Heavy Engineering Holdings Berhad analyst has a price target of RM0.94 per share, while the most pessimistic values it at RM0.51. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 5.9% annualised decline to the end of 2024. That is a notable change from historical growth of 21% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 5.4% annually for the foreseeable future.