The yearly results for Ningbo Boway Alloy Material Company Limited (SHSE:601137) were released last week, making it a good time to revisit its performance. The result was positive overall - although revenues of CN¥18b were in line with what the analysts predicted, Ningbo Boway Alloy Material surprised by delivering a statutory profit of CN¥1.43 per share, modestly greater than expected. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
After the latest results, the eight analysts covering Ningbo Boway Alloy Material are now predicting revenues of CN¥20.9b in 2024. If met, this would reflect a decent 18% improvement in revenue compared to the last 12 months. Per-share earnings are expected to climb 14% to CN¥1.65. In the lead-up to this report, the analysts had been modelling revenues of CN¥20.7b and earnings per share (EPS) of CN¥1.58 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 12% to CN¥20.57. 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 Ningbo Boway Alloy Material analyst has a price target of CN¥21.14 per share, while the most pessimistic values it at CN¥20.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 18% growth on an annualised basis. That is in line with its 19% annual growth 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 revenues grow 9.6% per year. So although Ningbo Boway Alloy Material is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider 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 Ningbo Boway Alloy Material following these results. Happily, there were no major changes to revenue forecasts, with the business still 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.
With that in mind, we wouldn't be too quick to come to a conclusion on Ningbo Boway Alloy Material. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Ningbo Boway Alloy Material going out to 2026, and you can see them free on our platform here..
It is also worth noting that we have found 2 warning signs for Ningbo Boway Alloy Material 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.