It's been a good week for Zhejiang Shuanghuan Driveline Co.,Ltd. (SZSE:002472) shareholders, because the company has just released its latest first-quarter results, and the shares gained 3.0% to CN¥23.75. It was a credible result overall, with revenues of CN¥2.1b and statutory earnings per share of CN¥0.97 both in line with analyst estimates, showing that Zhejiang Shuanghuan DrivelineLtd is executing in line with expectations. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Zhejiang Shuanghuan DrivelineLtd after the latest results.
Taking into account the latest results, the current consensus from Zhejiang Shuanghuan DrivelineLtd's 17 analysts is for revenues of CN¥9.55b in 2024. This would reflect a solid 14% increase on its revenue over the past 12 months. Per-share earnings are expected to expand 16% to CN¥1.20. Before this earnings report, the analysts had been forecasting revenues of CN¥9.62b and earnings per share (EPS) of CN¥1.20 in 2024. 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.
There were no changes to revenue or earnings estimates or the price target of CN¥29.36, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Zhejiang Shuanghuan DrivelineLtd analyst has a price target of CN¥35.30 per share, while the most pessimistic values it at CN¥27.00. This is a very narrow spread of estimates, implying either that Zhejiang Shuanghuan DrivelineLtd is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
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. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 19% growth on an annualised basis. That is in line with its 23% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 19% per year. So although Zhejiang Shuanghuan DrivelineLtd is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.
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 forecasts for Zhejiang Shuanghuan DrivelineLtd going out to 2026, and you can see them free on our platform here.
You can also see whether Zhejiang Shuanghuan DrivelineLtd is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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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.