Huaqin Technology Co., Ltd. (SHSE:603296) shareholders are probably feeling a little disappointed, since its shares fell 6.2% to CN¥54.91 in the week after its latest quarterly results. Results were mixed, with revenues of CN¥37b exceeding expectations, even as earnings per share (EPS) came up short. Statutory earnings were CN¥0.75 per share, -14% below whatthe analysts had forecast. 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 Huaqin Technology after the latest results.

Taking into account the latest results, the consensus forecast from Huaqin Technology's six analysts is for revenues of CN¥116.2b in 2025. This reflects a major 20% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 27% to CN¥3.48. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥114.9b and earnings per share (EPS) of CN¥3.49 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 9.6% to CN¥68.05. It looks as though they previously had some doubts over whether the business would live up to their expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Huaqin Technology analyst has a price target of CN¥80.00 per share, while the most pessimistic values it at CN¥61.28. This is a very narrow spread of estimates, implying either that Huaqin Technology is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Huaqin Technology's growth to accelerate, with the forecast 16% annualised growth to the end of 2025 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 14% per year. Huaqin Technology is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Huaqin Technology. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Huaqin Technology analysts - going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Huaqin Technology that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.