It's been a good week for Zhou Hei Ya International Holdings Company Limited (HKG:1458) shareholders, because the company has just released its latest half-year results, and the shares gained 2.1% to HK$3.85. It looks like the results were a bit of a negative overall. While revenues of CN¥2.9b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 6.0% to hit CN¥0.15 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Zhou Hei Ya International Holdings

Taking into account the latest results, the consensus forecast from Zhou Hei Ya International Holdings' 13 analysts is for revenues of CN¥2.78b in 2022, which would reflect a credible 6.9% improvement in sales compared to the last 12 months. Per-share earnings are expected to accumulate 4.2% to CN¥0.059. Before this earnings report, the analysts had been forecasting revenues of CN¥2.86b and earnings per share (EPS) of CN¥0.071 in 2022. 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 HK$5.25, suggesting the downgrades are not expected to have a long-term impact on Zhou Hei Ya International Holdings' 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 Zhou Hei Ya International Holdings at HK$6.36 per share, while the most bearish prices it at HK$4.43. 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 Zhou Hei Ya International Holdings 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. For example, we noticed that Zhou Hei Ya International Holdings' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 14% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 5.3% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 8.2% per year. So it looks like Zhou Hei Ya International Holdings is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Zhou Hei Ya International Holdings. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Zhou Hei Ya International Holdings analysts - going out to 2024, and you can see them free on our platform here.

You still need to take note of risks, for example - Zhou Hei Ya International Holdings has 2 warning signs we think you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.