It's been a good week for Ningbo Tuopu Group Co.,Ltd. (SHSE:601689) shareholders, because the company has just released its latest quarterly results, and the shares gained 6.2% to CN¥33.66. Statutory earnings per share of CN¥0.32 unfortunately missed expectations by 10%, although it was encouraging to see revenues of CN¥6.5b exceed expectations by 9.2%. 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.
Taking into account the latest results, the current consensus from Ningbo Tuopu GroupLtd's 21 analysts is for revenues of CN¥26.6b in 2024. This would reflect a notable 17% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to swell 18% to CN¥1.76. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥26.9b and earnings per share (EPS) of CN¥1.76 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¥50.53, showing that the business is executing well and in line with expectations. 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 Ningbo Tuopu GroupLtd at CN¥60.00 per share, while the most bearish prices it at CN¥40.32. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Ningbo Tuopu GroupLtd's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Ningbo Tuopu GroupLtd'shistorical trends, as the 37% annualised revenue growth to the end of 2024 is roughly in line with the 32% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 18% annually. So it's pretty clear that Ningbo Tuopu GroupLtd is forecast to grow substantially faster than its 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 major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. 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 Ningbo Tuopu GroupLtd going out to 2026, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Ningbo Tuopu GroupLtd , and understanding them should be part of your investment process.
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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.