Investors in Zhuzhou Kibing Group Co.,Ltd (SHSE:601636) had a good week, as its shares rose 2.1% to close at CN¥6.71 following the release of its quarterly results. Revenues missed expectations, with revenue of CN¥3.7b falling 17% short of forecasts. Earnings correspondingly dipped, with Zhuzhou Kibing GroupLtd reporting a statutory loss of CN¥0.04 per share, where the analysts were expecting a profit. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Zhuzhou Kibing GroupLtd after the latest results.
Taking into account the latest results, the consensus forecast from Zhuzhou Kibing GroupLtd's eleven analysts is for revenues of CN¥20.7b in 2025. This reflects a substantial 29% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 57% to CN¥0.71. In the lead-up to this report, the analysts had been modelling revenues of CN¥20.7b and earnings per share (EPS) of CN¥0.70 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 no major changes to earnings forecasts, the consensus price target fell 5.3% to CN¥6.87, suggesting that the analysts might have previously been hoping for an earnings upgrade. 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 Zhuzhou Kibing GroupLtd at CN¥11.00 per share, while the most bearish prices it at CN¥4.10. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Zhuzhou Kibing GroupLtd's rate of growth is expected to accelerate meaningfully, with the forecast 22% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 12% p.a. 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 14% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Zhuzhou Kibing GroupLtd to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share 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. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Zhuzhou Kibing GroupLtd going out to 2026, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 3 warning signs for Zhuzhou Kibing GroupLtd you should be aware of, and 2 of them are concerning.
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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.
