It's been a good week for Shenzhen Everwin Precision Technology Co., Ltd. (SZSE:300115) shareholders, because the company has just released its latest third-quarter results, and the shares gained 2.3% to CN¥15.87. Statutory earnings per share fell badly short of expectations, coming in at CN¥0.12, some 27% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at CN¥4.4b. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Shenzhen Everwin Precision Technology after the latest results.
After the latest results, the five analysts covering Shenzhen Everwin Precision Technology are now predicting revenues of CN¥19.7b in 2025. If met, this would reflect a huge 23% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 29% to CN¥0.65. Before this earnings report, the analysts had been forecasting revenues of CN¥20.1b and earnings per share (EPS) of CN¥0.66 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.
It might be a surprise to learn that the consensus price target was broadly unchanged at CN¥13.33, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Shenzhen Everwin Precision Technology at CN¥15.00 per share, while the most bearish prices it at CN¥10.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Shenzhen Everwin Precision Technology's rate of growth is expected to accelerate meaningfully, with the forecast 18% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 13% 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. Shenzhen Everwin Precision Technology is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Shenzhen Everwin Precision Technology going out to 2026, and you can see them free on our platform here..
You still need to take note of risks, for example - Shenzhen Everwin Precision Technology has 3 warning signs we think 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.
