Imeik Technology Development Co.,Ltd. (SZSE:300896) shareholders are probably feeling a little disappointed, since its shares fell 2.1% to CN¥335 in the week after its latest annual results. Results were roughly in line with estimates, with revenues of CN¥2.9b and statutory earnings per share of CN¥8.60. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Imeik Technology DevelopmentLtd after the latest results.
Taking into account the latest results, the consensus forecast from Imeik Technology DevelopmentLtd's 19 analysts is for revenues of CN¥3.92b in 2024. This reflects a sizeable 37% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 32% to CN¥11.42. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥4.00b and earnings per share (EPS) of CN¥11.72 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.
The consensus price target held steady at CN¥459, 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. The most optimistic Imeik Technology DevelopmentLtd analyst has a price target of CN¥669 per share, while the most pessimistic values it at CN¥334. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 37% growth on an annualised basis. That is in line with its 36% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 23% per year. So it's pretty clear that Imeik Technology DevelopmentLtd is forecast to grow substantially faster than its industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at CN¥459, 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 Imeik Technology DevelopmentLtd analysts - going out to 2026, and you can see them free on our platform here.
It is also worth noting that we have found 1 warning sign for Imeik Technology DevelopmentLtd that you need to take into consideration.
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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.