As you might know, China CSSC Holdings Limited (SHSE:600150) last week released its latest third-quarter, and things did not turn out so great for shareholders. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at CN¥20b, statutory earnings missed forecasts by an incredible 41%, coming in at just CN¥0.19 per share. 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 China CSSC Holdings after the latest results.
Taking into account the latest results, the current consensus from China CSSC Holdings' six analysts is for revenues of CN¥91.7b in 2025. This would reflect a solid 13% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 205% to CN¥1.82. Before this earnings report, the analysts had been forecasting revenues of CN¥92.3b and earnings per share (EPS) of CN¥1.89 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 minor downgrade to their earnings per share forecasts.
It might be a surprise to learn that the consensus price target was broadly unchanged at CN¥47.10, 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 China CSSC Holdings at CN¥50.00 per share, while the most bearish prices it at CN¥44.30. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the China CSSC Holdings' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of China CSSC Holdings'historical trends, as the 10% annualised revenue growth to the end of 2025 is roughly in line with the 10% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 17% annually. So it's pretty clear that China CSSC Holdings is expected to grow slower than similar companies in the same industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for China CSSC Holdings. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that China CSSC Holdings' revenue is expected to perform worse 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.
With that in mind, we wouldn't be too quick to come to a conclusion on China CSSC Holdings. Long-term earnings power is much more important than next year's profits. We have forecasts for China CSSC Holdings going out to 2026, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 1 warning sign for China CSSC Holdings that 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.
