Zhejiang Cfmoto Power Co.,Ltd (SHSE:603129) just released its latest full-year report and things are not looking great. Zhejiang Cfmoto PowerLtd missed analyst forecasts, with revenues of CN¥12b and statutory earnings per share (EPS) of CN¥6.69, falling short by 2.7% and 2.7% respectively. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
After the latest results, the nine analysts covering Zhejiang Cfmoto PowerLtd are now predicting revenues of CN¥14.9b in 2024. If met, this would reflect a substantial 23% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 22% to CN¥8.19. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥15.1b and earnings per share (EPS) of CN¥8.51 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.
Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 16% to CN¥152, suggesting the revised estimates are not indicative of a weaker long-term future for the business. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Zhejiang Cfmoto PowerLtd at CN¥175 per share, while the most bearish prices it at CN¥126. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Zhejiang Cfmoto PowerLtd's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 23% growth on an annualised basis. This is compared to a historical growth rate of 34% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 16% annually. Even after the forecast slowdown in growth, it seems obvious that Zhejiang Cfmoto PowerLtd is also expected to grow faster than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Zhejiang Cfmoto PowerLtd. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider 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 Zhejiang Cfmoto PowerLtd. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Zhejiang Cfmoto PowerLtd going out to 2026, and you can see them free on our platform here..
Plus, you should also learn about the 1 warning sign we've spotted with Zhejiang Cfmoto PowerLtd .
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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.