Kim Loong Resources Berhad (KLSE:KMLOONG) came out with its yearly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Results overall were respectable, with statutory earnings of RM0.17 per share roughly in line with what the analysts had forecast. Revenues of RM1.8b came in 7.0% ahead of analyst predictions. 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.
Following last week’s earnings report, Kim Loong Resources Berhad’s three analysts are forecasting 2027 revenues to be RM1.85b, approximately in line with the last 12 months. Statutory earnings per share are predicted to accumulate 2.3% to RM0.18. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM1.72b and earnings per share (EPS) of RM0.17 in 2027. 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.
Check out our latest analysis for Kim Loong Resources Berhad
Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of RM2.52, suggesting that the forecast performance does not have a long term impact on the company’s valuation. The consensus price target is just an average of individual analyst targets, so – it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Kim Loong Resources Berhad at RM3.00 per share, while the most bearish prices it at RM2.10. 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.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It’s pretty clear that there is an expectation that Kim Loong Resources Berhad’s revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 1.2% growth on an annualised basis. This is compared to a historical growth rate of 4.7% 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 3.1% per year. Factoring in the forecast slowdown in growth, it seems obvious that Kim Loong Resources Berhad is also expected to grow slower than other industry participants.