Beijing New Building Materials Public Limited Company (SZSE:000786) came out with its yearly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Revenues of CN¥22b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at CN¥2.09, missing estimates by 5.5%. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the current consensus from Beijing New Building Materials' 17 analysts is for revenues of CN¥26.0b in 2024. This would reflect a solid 16% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 24% to CN¥2.59. Before this earnings report, the analysts had been forecasting revenues of CN¥25.1b and earnings per share (EPS) of CN¥2.57 in 2024. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a modest lift to to revenue forecasts.
It may not be a surprise to see thatthe analysts have reconfirmed their price target of CN¥36.96, implying that the uplift in revenue is not expected to greatly contribute to Beijing New Building Materials's valuation in the near term. 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 Beijing New Building Materials analyst has a price target of CN¥47.60 per share, while the most pessimistic values it at CN¥31.61. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
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 Beijing New Building Materials' rate of growth is expected to accelerate meaningfully, with the forecast 16% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 13% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 16% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Beijing New Building Materials is expected to grow at about the same rate as the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also upgraded their revenue forecasts, although the latest estimates suggest that Beijing New Building Materials will grow in line with the overall 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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Beijing New Building Materials going out to 2026, and you can see them free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with Beijing New Building Materials .
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