As you might know, Huali Industrial Group Company Limited (SZSE:300979) just kicked off its latest half-year results with some very strong numbers. Results were good overall, with revenues beating analyst predictions by 3.3% to hit CN¥6.7b. Statutory earnings per share (EPS) came in at CN¥0.94, some 2.2% above whatthe analysts had expected. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Taking into account the latest results, the most recent consensus for Huali Industrial Group from 13 analysts is for revenues of CN¥23.9b in 2024. If met, it would imply a satisfactory 6.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 7.4% to CN¥3.33. In the lead-up to this report, the analysts had been modelling revenues of CN¥23.8b and earnings per share (EPS) of CN¥3.30 in 2024. 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¥74.49, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Huali Industrial Group at CN¥81.00 per share, while the most bearish prices it at CN¥70.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Huali Industrial Group's rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 9.7% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. Huali Industrial Group 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 important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share 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¥74.49, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Huali Industrial Group going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Huali Industrial Group that 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.

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