Xinjiang Qingsong Building Materials and Chemicals(Group)Co,Ltd. (SHSE:600425) just released its latest full-year report and things are not looking great. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at CN¥4.5b, statutory earnings missed forecasts by an incredible 24%, coming in at just CN¥0.29 per share. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on Xinjiang Qingsong Building Materials and Chemicals(Group)CoLtd after the latest results.

After the latest results, the sole analyst covering Xinjiang Qingsong Building Materials and Chemicals(Group)CoLtd are now predicting revenues of CN¥4.90b in 2024. If met, this would reflect a meaningful 9.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 32% to CN¥0.38. In the lead-up to this report, the analyst had been modelling revenues of CN¥5.44b and earnings per share (EPS) of CN¥0.47 in 2024. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.

It'll come as no surprise then, to learn that the analyst has cut their price target 20% to CN¥5.00.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2024 brings more of the same, according to the analyst, with revenue forecast to display 9.1% growth on an annualised basis. That is in line with its 10% 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 9.8% per year. It's clear that while Xinjiang Qingsong Building Materials and Chemicals(Group)CoLtd's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Xinjiang Qingsong Building Materials and Chemicals(Group)CoLtd. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Xinjiang Qingsong Building Materials and Chemicals(Group)CoLtd's future valuation.

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. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Xinjiang Qingsong Building Materials and Chemicals(Group)CoLtd you should know about.

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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.