Ningxia Building Materials Group Co.,Ltd (SHSE:600449) shareholders are probably feeling a little disappointed, since its shares fell 6.8% to CN¥16.33 in the week after its latest yearly results. Revenue of CN¥10b surpassed estimates by 4.1%, although statutory earnings per share missed badly, coming in 25% below expectations at CN¥0.62 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is 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 analyst has changed their earnings models, following these results.
Following the latest results, Ningxia Building Materials GroupLtd's single analyst are now forecasting revenues of CN¥12.6b in 2024. This would be a substantial 21% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 21% to CN¥0.75. In the lead-up to this report, the analyst had been modelling revenues of CN¥11.4b and earnings per share (EPS) of CN¥1.08 in 2024. Although revenue sentiment has improved substantially, the analyst has made a large cut to per-share earnings estimates, suggesting that the growth is not without cost.
The consensus price target was unchanged at CN¥20.20, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Ningxia Building Materials GroupLtd's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Ningxia Building Materials GroupLtd'shistorical trends, as the 21% annualised revenue growth to the end of 2024 is roughly in line with the 19% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 9.4% annually. So although Ningxia Building Materials GroupLtd is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, they also upgraded their revenue estimates, and are forecasting them 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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Ningxia Building Materials GroupLtd going out as far as 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 Ningxia Building Materials GroupLtd 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.