The investors in OFILM Group Co., Ltd.'s (SZSE:002456) will be rubbing their hands together with glee today, after the share price leapt 21% to CN¥15.88 in the week following its quarterly results. It was a negative result overall, with revenues coming in 13% less than what the analysts expected, at CN¥4.9b. This is an important time for investors, as they can track a company's performance in its report, look at what experts are 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 analysts have changed their mind on OFILM Group after the latest results.

After the latest results, the three analysts covering OFILM Group are now predicting revenues of CN¥26.1b in 2025. If met, this would reflect a sizeable 27% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 113% to CN¥0.27. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥26.2b and earnings per share (EPS) of CN¥0.27 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of CN¥8.45, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic OFILM Group analyst has a price target of CN¥12.14 per share, while the most pessimistic values it at CN¥6.50. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that OFILM Group's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 21% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 30% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 18% annually. So it looks like OFILM Group is expected to grow at about the same rate as the wider industry.

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. The consensus price target held steady at CN¥8.45, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on OFILM Group. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple OFILM Group analysts - going out to 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 OFILM Group you should be aware of, and 1 of them makes us a bit uncomfortable.

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.