It's been a good week for Zhou Hei Ya International Holdings Company Limited (HKG:1458) shareholders, because the company has just released its latest half-year results, and the shares gained 2.8% to HK$1.49. Zhou Hei Ya International Holdings reported a serious miss, with revenue of CN¥1.3b falling a huge 20% short of analyst estimates. The bright side is that statutory earnings per share of CN¥0.05 were in line with forecasts. 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 consensus forecast from Zhou Hei Ya International Holdings' nine analysts is for revenues of CN¥2.93b in 2024. This reflects a notable 13% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 305% to CN¥0.086. Before this earnings report, the analysts had been forecasting revenues of CN¥3.06b and earnings per share (EPS) of CN¥0.16 in 2024. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a pretty serious reduction to earnings per share numbers.

It'll come as no surprise then, to learn that the analysts have cut their price target 15% to HK$1.95. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Zhou Hei Ya International Holdings, with the most bullish analyst valuing it at HK$2.53 and the most bearish at HK$1.40 per share. 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. One thing stands out from these estimates, which is that Zhou Hei Ya International Holdings is forecast to grow faster in the future than it has in the past, with revenues expected to display 28% annualised growth until the end of 2024. If achieved, this would be a much better result than the 2.8% annual decline 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 5.8% annually. Not only are Zhou Hei Ya International Holdings' revenues expected to improve, it seems that the analysts are also expecting it 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 Zhou Hei Ya International Holdings. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Zhou Hei Ya International Holdings' future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Zhou Hei Ya International Holdings 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 Zhou Hei Ya International Holdings 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.