Beijing Haohua Energy Resource Co., Ltd. (SHSE:601101) last week reported its latest annual results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It was not a great result overall. Although revenues beat expectations, hitting CN¥8.6b, statutory earnings missed analyst forecasts by 17%, coming in at just CN¥0.72 per share. 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. 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 most recent consensus for Beijing Haohua Energy Resource from two analysts is for revenues of CN¥9.05b in 2024. If met, it would imply an okay 5.2% increase on its revenue over the past 12 months. Per-share earnings are expected to expand 19% to CN¥0.88. In the lead-up to this report, the analysts had been modelling revenues of CN¥8.88b and earnings per share (EPS) of CN¥1.01 in 2024. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a real cut to EPS estimates.
Despite cutting their earnings forecasts,the analysts have lifted their price target 59% to CN¥10.00, suggesting that these impacts are not expected to weigh on the stock's value in the long term.
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. We would highlight that Beijing Haohua Energy Resource's revenue growth is expected to slow, with the forecast 5.2% annualised growth rate until the end of 2024 being well below the historical 15% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.1% annually. Even after the forecast slowdown in growth, it seems obvious that Beijing Haohua Energy Resource is also expected to grow faster than the wider industry.
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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
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. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.
Before you take the next step you should know about the 1 warning sign for Beijing Haohua Energy Resource that we have uncovered.
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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.