Investors in Zhengzhou Qianweiyangchu Food Co., Ltd. (SZSE:001215) had a good week, as its shares rose 6.5% to close at CN¥55.90 following the release of its quarterly results. Results look mixed - while revenue fell marginally short of analyst estimates at CN¥477m, statutory earnings were in line with expectations, at CN¥1.18 per share. 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 Zhengzhou Qianweiyangchu Food after the latest results.
Check out our latest analysis for Zhengzhou Qianweiyangchu Food
Taking into account the latest results, the consensus forecast from Zhengzhou Qianweiyangchu Food's twelve analysts is for revenues of CN¥2.40b in 2024. This reflects a major 34% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 55% to CN¥2.26. Before this earnings report, the analysts had been forecasting revenues of CN¥2.42b and earnings per share (EPS) of CN¥2.22 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.
With no major changes to earnings forecasts, the consensus price target fell 9.5% to CN¥75.08, suggesting that the analysts might have previously been hoping for an earnings upgrade. 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. Currently, the most bullish analyst values Zhengzhou Qianweiyangchu Food at CN¥87.60 per share, while the most bearish prices it at CN¥70.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Zhengzhou Qianweiyangchu Food's rate of growth is expected to accelerate meaningfully, with the forecast 27% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 18% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 13% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Zhengzhou Qianweiyangchu Food to grow faster than 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 major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Zhengzhou Qianweiyangchu Food going out to 2025, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 1 warning sign for Zhengzhou Qianweiyangchu Food you should know about.
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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.