As you might know, SDIC Power Holdings Co., Ltd (SHSE:600886) recently reported its quarterly numbers. Revenues CN¥17b disappointed slightly, at7.9% below what the analysts had predicted. Profits were a relative bright spot, with statutory per-share earnings of CN¥0.37 coming in 19% above what was anticipated. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
After the latest results, the eleven analysts covering SDIC Power Holdings are now predicting revenues of CN¥64.0b in 2025. If met, this would reflect a notable 9.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to ascend 16% to CN¥1.12. In the lead-up to this report, the analysts had been modelling revenues of CN¥64.2b and earnings per share (EPS) of CN¥1.15 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.
The consensus price target held steady at CN¥17.37, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. The most optimistic SDIC Power Holdings analyst has a price target of CN¥22.10 per share, while the most pessimistic values it at CN¥9.64. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
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. We can infer from the latest estimates that forecasts expect a continuation of SDIC Power Holdings'historical trends, as the 7.3% annualised revenue growth to the end of 2025 is roughly in line with the 8.8% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 6.1% per year. So although SDIC Power Holdings is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for SDIC Power Holdings. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at CN¥17.37, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for SDIC Power Holdings 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 SDIC Power Holdings (1 is 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.
