It's been a good week for KEBODA TECHNOLOGY Co., Ltd. (SHSE:603786) shareholders, because the company has just released its latest first-quarter results, and the shares gained 8.2% to CN¥65.29. KEBODA TECHNOLOGY reported in line with analyst predictions, delivering revenues of CN¥4.6b and statutory earnings per share of CN¥0.54, suggesting the business is executing well and in line with its plan. 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 most recent consensus for KEBODA TECHNOLOGY from eight analysts is for revenues of CN¥6.24b in 2024. If met, it would imply a huge 35% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 42% to CN¥2.16. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥5.91b and earnings per share (EPS) of CN¥2.11 in 2024. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.
Despite these upgrades,the analysts have not made any major changes to their price target of CN¥85.91, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic KEBODA TECHNOLOGY analyst has a price target of CN¥92.00 per share, while the most pessimistic values it at CN¥81.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting KEBODA TECHNOLOGY is an easy business to forecast or the the analysts are all using similar assumptions.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the KEBODA TECHNOLOGY's past performance and to peers in the same industry. It's clear from the latest estimates that KEBODA TECHNOLOGY's rate of growth is expected to accelerate meaningfully, with the forecast 49% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 9.0% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 18% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that KEBODA TECHNOLOGY is expected to grow much faster than its industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards KEBODA TECHNOLOGY following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider 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 in mind, we wouldn't be too quick to come to a conclusion on KEBODA TECHNOLOGY. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple KEBODA TECHNOLOGY analysts - going out to 2026, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 1 warning sign for KEBODA TECHNOLOGY that you should be aware of.
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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.