Last week, you might have seen that Tangshan Jidong Cement Co.,Ltd. (SZSE:000401) released its annual result to the market. The early response was not positive, with shares down 3.8% to CN¥5.36 in the past week. Revenues fell 2.0% short of expectations, at CN¥28b. Earnings correspondingly dipped, with Tangshan Jidong CementLtd reporting a statutory loss of CN¥0.56 per share, whereas the analysts had previously modelled a profit in this period. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. 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, Tangshan Jidong CementLtd's four analysts currently expect revenues in 2024 to be CN¥28.6b, approximately in line with the last 12 months. Tangshan Jidong CementLtd is also expected to turn profitable, with statutory earnings of CN¥0.46 per share. In the lead-up to this report, the analysts had been modelling revenues of CN¥31.9b and earnings per share (EPS) of CN¥0.43 in 2024. Indeed we can see that the consensus opinion has undergone some fundamental changes after the latest results, with a real cut to revenues at the same time as boosting EPS forecasts.
The consensus price target fell 17% to CN¥6.36, with the analysts signalling that the weaker revenue outlook was a more powerful indicator than the upgraded EPS forecasts. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Tangshan Jidong CementLtd at CN¥8.39 per share, while the most bearish prices it at CN¥4.10. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's also worth noting that the years of declining revenue look to have come to an end, with the forecast stauing flat to the end of 2024. Historically, Tangshan Jidong CementLtd's top line has shrunk approximately 0.6% annually over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 9.4% per year. So it's pretty clear that, although revenues are improving, Tangshan Jidong CementLtd is still expected to grow slower than the industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Tangshan Jidong CementLtd's earnings potential next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Yet - earnings are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Tangshan Jidong CementLtd's future valuation.
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 Tangshan Jidong CementLtd 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 Tangshan Jidong CementLtd .
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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.