It's shaping up to be a tough period for Tingyi (Cayman Islands) Holding Corp. (HKG:322), which a week ago released some disappointing yearly results that could have a notable impact on how the market views the stock. Tingyi (Cayman Islands) Holding missed analyst forecasts, with revenues of CN¥80b and statutory earnings per share (EPS) of CN¥0.55, falling short by 2.7% and 5.8% respectively. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

After the latest results, the 21 analysts covering Tingyi (Cayman Islands) Holding are now predicting revenues of CN¥84.4b in 2024. If met, this would reflect a satisfactory 5.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 11% to CN¥0.61. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥86.8b and earnings per share (EPS) of CN¥0.68 in 2024. 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.

Despite the cuts to forecast earnings, there was no real change to the HK$11.41 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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 Tingyi (Cayman Islands) Holding at HK$15.82 per share, while the most bearish prices it at HK$8.00. 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.

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. It's pretty clear that there is an expectation that Tingyi (Cayman Islands) Holding's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 5.0% growth on an annualised basis. This is compared to a historical growth rate of 7.2% 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 7.9% per year. Factoring in the forecast slowdown in growth, it seems obvious that Tingyi (Cayman Islands) Holding is also expected to grow slower than other industry participants.

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. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at HK$11.41, with the latest estimates not enough to have an impact on their price targets.

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 Tingyi (Cayman Islands) Holding 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 Tingyi (Cayman Islands) Holding 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.