Anhui Wanwei Updated High-Tech Material Industry Co.,Ltd (SHSE:600063) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. The analysts look to have been far too optimistic in the lead-up to these results, with revenues of (CN¥1.8b) coming in 31% below what they had expected. Statutory earnings per share of CN¥0.022 fell 76% short. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Following the latest results, Anhui Wanwei Updated High-Tech Material IndustryLtd's two analysts are now forecasting revenues of CN¥8.86b in 2024. This would be a notable 18% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 393% to CN¥0.31. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥9.04b and earnings per share (EPS) of CN¥0.30 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 8.4% to CN¥5.21.
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. It's clear from the latest estimates that Anhui Wanwei Updated High-Tech Material IndustryLtd's rate of growth is expected to accelerate meaningfully, with the forecast 25% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 6.5% p.a. 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 Anhui Wanwei Updated High-Tech Material IndustryLtd 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 Anhui Wanwei Updated High-Tech Material IndustryLtd 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.
Even so, be aware that Anhui Wanwei Updated High-Tech Material IndustryLtd is showing 3 warning signs in our investment analysis , you should know about...
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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.
