Fujian Kuncai Material Technology Co., Ltd. (SHSE:603826) just released its latest annual report and things are not looking great. Fujian Kuncai Material Technology delivered a grave earnings miss, with both revenues (CN¥829m) and statutory earnings per share (CN¥0.18) falling badly short of analyst expectations. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on Fujian Kuncai Material Technology after the latest results.
Taking into account the latest results, the consensus forecast from Fujian Kuncai Material Technology's sole analyst is for revenues of CN¥3.32b in 2024. This reflects a major 300% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 915% to CN¥1.82. Yet prior to the latest earnings, the analyst had been anticipated revenues of CN¥4.25b and earnings per share (EPS) of CN¥1.63 in 2024. So there's been quite a change-up of views after the latest results, with the analyst making a serious cut to their revenue forecasts while also granting a nice increase in to the earnings per share numbers.
The average price target rose 253% to CN¥65.00, with the analyst signalling that the improved earnings outlook is the key driver of value for shareholders - enough to offset the reduction in revenue estimates.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Fujian Kuncai Material Technology's past performance and to peers in the same industry. The analyst is definitely expecting Fujian Kuncai Material Technology's growth to accelerate, with the forecast 3x annualised growth to the end of 2024 ranking favourably alongside historical growth of 8.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Fujian Kuncai Material Technology is expected to grow much faster than its industry.
The Bottom Line
The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Fujian Kuncai Material Technology following these results. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Still, earnings per share are more important to value creation for shareholders. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.
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 analyst estimates for Fujian Kuncai Material Technology going out as far as 2025, and you can see them free on our platform here.
It is also worth noting that we have found 1 warning sign for Fujian Kuncai Material Technology that you need to take into consideration.
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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.