It's shaping up to be a tough period for Yongxing Special Materials Technology Co.,Ltd (SZSE:002756), which a week ago released some disappointing quarterly results that could have a notable impact on how the market views the stock. Yongxing Special Materials TechnologyLtd delivered a grave earnings miss, with both revenues (CN¥1.7b) and statutory earnings per share (CN¥0.37) falling badly short of analyst expectations. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Yongxing Special Materials TechnologyLtd after the latest results.

Taking into account the latest results, the consensus forecast from Yongxing Special Materials TechnologyLtd's six analysts is for revenues of CN¥9.73b in 2025. This reflects a notable 12% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be CN¥2.53, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of CN¥9.93b and earnings per share (EPS) of CN¥2.76 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the CN¥34.54 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Yongxing Special Materials TechnologyLtd at CN¥40.13 per share, while the most bearish prices it at CN¥31.50. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Yongxing Special Materials TechnologyLtd is an easy business to forecast or the the analysts are all using similar assumptions.

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. We would highlight that Yongxing Special Materials TechnologyLtd's revenue growth is expected to slow, with the forecast 9.2% annualised growth rate until the end of 2025 being well below the historical 22% p.a. growth over the last five years. Compare this to the 200 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 10.0% per year. Factoring in the forecast slowdown in growth, it looks like Yongxing Special Materials TechnologyLtd is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Yongxing Special Materials TechnologyLtd going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Yongxing Special Materials TechnologyLtd that you should be aware of.

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