As you might know, Zhejiang Huangma Technology Co.,Ltd (SHSE:603181) last week released its latest yearly, and things did not turn out so great for shareholders. Earnings overall missed expectations, with revenue falling 28% short of analyst estimates, at CN¥1.9b. Statutory earnings per share were CN¥0.57, 9.5% shy of estimates. 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 most recent consensus for Zhejiang Huangma TechnologyLtd from three analysts is for revenues of CN¥2.34b in 2024. If met, it would imply a major 24% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to ascend 15% to CN¥0.66. In the lead-up to this report, the analysts had been modelling revenues of CN¥3.18b and earnings per share (EPS) of CN¥0.78 in 2024. Indeed, we can see that the analysts are a lot more bearish about Zhejiang Huangma TechnologyLtd's prospects following the latest results, administering a pretty serious reduction to revenue estimates and slashing their EPS estimates to boot.
Despite the cuts to forecast earnings, there was no real change to the CN¥12.46 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. The most optimistic Zhejiang Huangma TechnologyLtd analyst has a price target of CN¥14.16 per share, while the most pessimistic values it at CN¥10.71. 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. The analysts are definitely expecting Zhejiang Huangma TechnologyLtd's growth to accelerate, with the forecast 24% annualised growth to the end of 2024 ranking favourably alongside historical growth of 3.5% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 16% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Zhejiang Huangma TechnologyLtd to grow faster than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Zhejiang Huangma TechnologyLtd. They also downgraded Zhejiang Huangma TechnologyLtd's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target held steady at CN¥12.46, 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. At Simply Wall St, we have a full range of analyst estimates for Zhejiang Huangma TechnologyLtd 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 Huangma TechnologyLtd 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.