Investors in Piotech Inc. (SHSE:688072) had a good week, as its shares rose 3.2% to close at CN¥161 following the release of its quarterly results. Revenues were CN¥1.0b, 17% below analyst expectations, although losses didn't appear to worsen significantly, with a statutory per-share loss of CN¥2.40 being in line with what the analysts anticipated. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Following the latest results, Piotech's eleven analysts are now forecasting revenues of CN¥5.45b in 2025. This would be a sizeable 66% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 75% to CN¥4.19. Before this earnings report, the analysts had been forecasting revenues of CN¥5.43b and earnings per share (EPS) of CN¥4.25 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at CN¥196. 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. Currently, the most bullish analyst values Piotech at CN¥262 per share, while the most bearish prices it at CN¥145. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Piotech's past performance and to peers in the same industry. The analysts are definitely expecting Piotech's growth to accelerate, with the forecast 50% annualised growth to the end of 2025 ranking favourably alongside historical growth of 40% 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 23% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Piotech is expected to grow much faster than its 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider 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.
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. We have forecasts for Piotech going out to 2026, and you can see them free on our platform here.
Even so, be aware that Piotech is showing 2 warning signs in our investment analysis , and 1 of those is a bit unpleasant...
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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.
