Last week, you might have seen that Ziel Home Furnishing Technology Co., Ltd. (SZSE:301376) released its full-year result to the market. The early response was not positive, with shares down 4.5% to CN¥24.08 in the past week. The result was positive overall - although revenues of CN¥6.1b were in line with what the analysts predicted, Ziel Home Furnishing Technology surprised by delivering a statutory profit of CN¥1.08 per share, modestly greater than expected. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Ziel Home Furnishing Technology after the latest results.
Taking into account the latest results, the current consensus from Ziel Home Furnishing Technology's ten analysts is for revenues of CN¥7.79b in 2024. This would reflect a sizeable 28% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 34% to CN¥1.38. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥7.33b and earnings per share (EPS) of CN¥1.25 in 2024. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a nice gain to earnings per share in particular.
Despite these upgrades,the analysts have not made any major changes to their price target of CN¥30.27, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Ziel Home Furnishing Technology at CN¥33.12 per share, while the most bearish prices it at CN¥28.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Ziel Home Furnishing Technology's rate of growth is expected to accelerate meaningfully, with the forecast 28% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 18% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 9.8% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Ziel Home Furnishing Technology to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Ziel Home Furnishing Technology following these results. Happily, they also upgraded their revenue estimates, and are forecasting them 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.
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 Ziel Home Furnishing Technology analysts - going out to 2026, and you can see them free on our platform here.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
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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.