Shareholders might have noticed that Hithink RoyalFlush Information Network Co., Ltd. (SZSE:300033) filed its quarterly result this time last week. The early response was not positive, with shares down 4.7% to CN¥201 in the past week. Revenues came in 9.5% below expectations, at CN¥945m. Statutory earnings per share were relatively better off, with a per-share profit of CN¥2.61 being roughly in line with analyst estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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 consensus forecast from Hithink RoyalFlush Information Network's eleven analysts is for revenues of CN¥4.46b in 2025. This reflects a substantial 26% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 45% to CN¥3.45. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥4.34b and earnings per share (EPS) of CN¥3.18 in 2025. 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.
With these upgrades, we're not surprised to see that the analysts have lifted their price target 30% to CN¥183per share. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Hithink RoyalFlush Information Network, with the most bullish analyst valuing it at CN¥280 and the most bearish at CN¥76.80 per share. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Hithink RoyalFlush Information Network's growth to accelerate, with the forecast 21% annualised growth to the end of 2025 ranking favourably alongside historical growth of 13% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 9.8% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Hithink RoyalFlush Information Network 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 Hithink RoyalFlush Information Network following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
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 Simply Wall St, we have a full range of analyst estimates for Hithink RoyalFlush Information Network going out to 2026, and you can see them free on our platform here..
Before you take the next step you should know about the 2 warning signs for Hithink RoyalFlush Information Network (1 shouldn't be ignored!) that we have uncovered.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
