Neway Valve (Suzhou) Co., Ltd. (SHSE:603699) just released its annual report and things are looking bullish. Neway Valve (Suzhou) beat earnings, with revenues hitting CN¥5.5b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 19%. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

After the latest results, the two analysts covering Neway Valve (Suzhou) are now predicting revenues of CN¥6.62b in 2024. If met, this would reflect a decent 19% improvement in revenue compared to the last 12 months. Per-share earnings are expected to swell 16% to CN¥1.10. In the lead-up to this report, the analysts had been modelling revenues of CN¥6.58b and earnings per share (EPS) of CN¥1.05 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 16% to CN¥20.41.

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 analysts are definitely expecting Neway Valve (Suzhou)'s growth to accelerate, with the forecast 19% annualised growth to the end of 2024 ranking favourably alongside historical growth of 12% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 18% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Neway Valve (Suzhou) is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Neway Valve (Suzhou) following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Neway Valve (Suzhou). Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

You still need to take note of risks, for example - Neway Valve (Suzhou) has 1 warning sign we think 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.