The annual results for GHL Systems Berhad (KLSE:GHLSYS) were released last week, making it a good time to revisit its performance. It looks like the results were a bit of a negative overall. While revenues of RM460m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 5.5% to hit RM0.025 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Check out our latest analysis for GHL Systems Berhad
Taking into account the latest results, the most recent consensus for GHL Systems Berhad from six analysts is for revenues of RM480.4m in 2024. If met, it would imply an okay 4.3% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to ascend 15% to RM0.029. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM500.9m and earnings per share (EPS) of RM0.033 in 2024. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.
The analysts made no major changes to their price target of RM0.88, suggesting the downgrades are not expected to have a long-term impact on GHL Systems Berhad'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. The most optimistic GHL Systems Berhad analyst has a price target of RM1.10 per share, while the most pessimistic values it at RM0.70. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the GHL Systems Berhad's past performance and to peers in the same industry. We would highlight that GHL Systems Berhad's revenue growth is expected to slow, with the forecast 4.3% annualised growth rate until the end of 2024 being well below the historical 6.9% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.1% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than GHL Systems Berhad.