MEITEC Group Holdings Inc. (TSE:9744) Just Released Its Interim Results And Analysts Are Updating Their Estimates

Last week, you might have seen that MEITEC Group Holdings Inc. (TSE:9744) released its interim result to the market. The early response was not positive, with shares down 5.7% to JP¥3,195 in the past week. It was a credible result overall, with revenues of JP¥69b and statutory earnings per share of JP¥195 both in line with analyst estimates, showing that MEITEC Group Holdings is executing in line with expectations. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following last week’s earnings report, MEITEC Group Holdings’ four analysts are forecasting 2027 revenues to be JP¥139.6b, approximately in line with the last 12 months. Statutory earnings per share are forecast to reduce 6.4% to JP¥143 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥141.3b and earnings per share (EPS) of JP¥184 in 2027. So there’s definitely been a decline in sentiment after the latest results, noting the large cut to new EPS forecasts.

View our latest analysis for MEITEC Group Holdings

The consensus price target held steady at JP¥3,340, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. There are some variant perceptions on MEITEC Group Holdings, with the most bullish analyst valuing it at JP¥3,500 and the most bearish at JP¥3,100 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the MEITEC Group Holdings’ past performance and to peers in the same industry. It’s pretty clear that there is an expectation that MEITEC Group Holdings’ revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 2.2% growth on an annualised basis. This is compared to a historical growth rate of 5.9% 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 9.1% per year. Factoring in the forecast slowdown in growth, it seems obvious that MEITEC Group Holdings is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for MEITEC Group Holdings. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it’s tracking in line with expectations. Although our data does suggest that MEITEC Group Holdings’ revenue is expected to perform worse than the wider industry. The consensus price target held steady at JP¥3,340, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates – from multiple MEITEC Group Holdings analysts – going out to 2029, and you can see them free on our platform here.

Even so, be aware that MEITEC Group Holdings is showing 1 warning sign in our investment analysis , you should know about…

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