It's been a good week for Zhejiang Supor Co., Ltd. (SZSE:002032) shareholders, because the company has just released its latest full-year results, and the shares gained 7.3% to CN¥58.53. Zhejiang Supor reported in line with analyst predictions, delivering revenues of CN¥21b and statutory earnings per share of CN¥2.72, suggesting the business is executing well and in line with its plan. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Taking into account the latest results, the current consensus from Zhejiang Supor's 18 analysts is for revenues of CN¥22.7b in 2024. This would reflect a satisfactory 6.4% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 6.4% to CN¥2.91. In the lead-up to this report, the analysts had been modelling revenues of CN¥22.6b and earnings per share (EPS) of CN¥2.93 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 5.5% to CN¥60.46. It looks as though they previously had some doubts over whether the business would live up to their expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Zhejiang Supor at CN¥67.00 per share, while the most bearish prices it at CN¥53.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. It's clear from the latest estimates that Zhejiang Supor's rate of growth is expected to accelerate meaningfully, with the forecast 6.4% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 2.9% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 10.0% annually. So it's clear that despite the acceleration in growth, Zhejiang Supor is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Zhejiang Supor's revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 Zhejiang Supor analysts - going out to 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Zhejiang Supor you should know about.

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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.