A week ago, YTL Power International Berhad (KLSE:YTLPOWR) came out with a strong set of annual numbers that could potentially lead to a re-rate of the stock. The company beat expectations with revenues of RM22b arriving 2.0% ahead of forecasts. Statutory earnings per share (EPS) were RM0.42, 6.6% ahead of estimates. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
View our latest analysis for YTL Power International Berhad
Taking into account the latest results, the consensus forecast from YTL Power International Berhad's 13 analysts is for revenues of RM23.0b in 2025. This reflects a satisfactory 2.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to reduce 7.1% to RM0.39 in the same period. Before this earnings report, the analysts had been forecasting revenues of RM23.0b and earnings per share (EPS) of RM0.39 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
With no major changes to earnings forecasts, the consensus price target fell 5.3% to RM5.74, suggesting that the analysts might have previously been hoping for an earnings upgrade. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic YTL Power International Berhad analyst has a price target of RM7.30 per share, while the most pessimistic values it at RM4.00. 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 YTL Power International Berhad shareholders.
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 pretty clear that there is an expectation that YTL Power International Berhad's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.8% growth on an annualised basis. This is compared to a historical growth rate of 19% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.1% per year. Factoring in the forecast slowdown in growth, it seems obvious that YTL Power International Berhad is also expected to grow slower than other industry participants.