Shareholders might have noticed that Anji Microelectronics Technology (Shanghai) Co., Ltd. (SHSE:688019) filed its annual result this time last week. The early response was not positive, with shares down 2.9% to CN¥141 in the past week. It looks like the results were a bit of a negative overall. While revenues of CN¥1.2b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.6% to hit CN¥3.99 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the most recent consensus for Anji Microelectronics Technology (Shanghai) from seven analysts is for revenues of CN¥1.65b in 2024. If met, it would imply a huge 33% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 22% to CN¥4.76. In the lead-up to this report, the analysts had been modelling revenues of CN¥1.69b and earnings per share (EPS) of CN¥4.95 in 2024. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.
Despite the cuts to forecast earnings, there was no real change to the CN¥176 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Anji Microelectronics Technology (Shanghai), with the most bullish analyst valuing it at CN¥191 and the most bearish at CN¥157 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Anji Microelectronics Technology (Shanghai)'shistorical trends, as the 33% annualised revenue growth to the end of 2024 is roughly in line with the 35% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 24% annually. So it's pretty clear that Anji Microelectronics Technology (Shanghai) is forecast to grow substantially faster than its industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Anji Microelectronics Technology (Shanghai). They also downgraded Anji Microelectronics Technology (Shanghai)'s revenue estimates, but industry data suggests that it is expected to 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 in mind, we wouldn't be too quick to come to a conclusion on Anji Microelectronics Technology (Shanghai). Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Anji Microelectronics Technology (Shanghai) going out to 2025, and you can see them free on our platform here..
You still need to take note of risks, for example - Anji Microelectronics Technology (Shanghai) has 1 warning sign 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.