It's been a pretty great week for Hangzhou Binjiang Real Estate Group Co.,Ltd (SZSE:002244) shareholders, with its shares surging 16% to CN¥6.71 in the week since its latest full-year results. Revenues of CN¥70b smashed analyst forecasts, although statutory earnings came up 40% short, at CN¥0.81 per share. 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.

Taking into account the latest results, the current consensus from Hangzhou Binjiang Real Estate GroupLtd's ten analysts is for revenues of CN¥72.2b in 2024. This would reflect a satisfactory 2.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 68% to CN¥1.37. Before this earnings report, the analysts had been forecasting revenues of CN¥63.4b and earnings per share (EPS) of CN¥1.55 in 2024. Although revenue sentiment has improved substantially, the analysts have made a real cut to per-share earnings estimates, suggesting that the growth is not without cost.

The consensus price target fell 6.1% to CN¥9.60, suggesting that the analysts are primarily focused on earnings as the driver of value for this business. 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 Hangzhou Binjiang Real Estate GroupLtd analyst has a price target of CN¥12.51 per share, while the most pessimistic values it at CN¥7.80. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Hangzhou Binjiang Real Estate GroupLtd's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 2.6% growth on an annualised basis. This is compared to a historical growth rate of 24% 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 5.0% per year. Factoring in the forecast slowdown in growth, it seems obvious that Hangzhou Binjiang Real Estate GroupLtd 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. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Hangzhou Binjiang Real Estate GroupLtd's future valuation.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Hangzhou Binjiang Real Estate GroupLtd going out to 2026, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Hangzhou Binjiang Real Estate GroupLtd , and understanding these should be part of your investment process.

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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.