Weihai Guangwei Composites Co., Ltd. (SZSE:300699) just released its latest quarterly report and things are not looking great. Weihai Guangwei Composites missed analyst forecasts, with revenues of CN¥746m and statutory earnings per share (EPS) of CN¥0.30, falling short by 6.8% and 8.3% respectively. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Weihai Guangwei Composites after the latest results.
After the latest results, the eight analysts covering Weihai Guangwei Composites are now predicting revenues of CN¥3.33b in 2025. If met, this would reflect a substantial 25% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 25% to CN¥1.32. In the lead-up to this report, the analysts had been modelling revenues of CN¥3.29b and earnings per share (EPS) of CN¥1.31 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 19% to CN¥36.13. It looks as though they previously had some doubts over whether the business would live up to their expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Weihai Guangwei Composites, with the most bullish analyst valuing it at CN¥43.00 and the most bearish at CN¥28.20 per share. 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.
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 analysts are definitely expecting Weihai Guangwei Composites' growth to accelerate, with the forecast 19% annualised growth to the end of 2025 ranking favourably alongside historical growth of 7.1% per annum 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 Weihai Guangwei Composites is expected to grow at about the same rate as the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.
With that in mind, we wouldn't be too quick to come to a conclusion on Weihai Guangwei Composites. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Weihai Guangwei Composites analysts - 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 Weihai Guangwei Composites (1 is a bit concerning!) that we have uncovered.
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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.
