As you might know, Zhejiang Cfmoto Power Co.,Ltd (SHSE:603129) last week released its latest quarterly, and things did not turn out so great for shareholders. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at CN¥3.9b, statutory earnings missed forecasts by 19%, coming in at just CN¥2.44 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 Zhejiang Cfmoto PowerLtd after the latest results.
Following the latest results, Zhejiang Cfmoto PowerLtd's nine analysts are now forecasting revenues of CN¥18.3b in 2025. This would be a huge 29% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 33% to CN¥11.27. In the lead-up to this report, the analysts had been modelling revenues of CN¥18.2b and earnings per share (EPS) of CN¥11.00 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
The consensus price target was unchanged at CN¥181, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. The most optimistic Zhejiang Cfmoto PowerLtd analyst has a price target of CN¥203 per share, while the most pessimistic values it at CN¥165. 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.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Zhejiang Cfmoto PowerLtd's past performance and to peers in the same industry. 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 2025 expected to display 22% growth on an annualised basis. This is compared to a historical growth rate of 29% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 14% per year. 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 takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Zhejiang Cfmoto PowerLtd's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at CN¥181, with the latest estimates not enough to have an impact on their price targets.
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. We have estimates - from multiple Zhejiang Cfmoto PowerLtd analysts - going out to 2026, and you can see them free on our platform here.
Even so, be aware that Zhejiang Cfmoto PowerLtd is showing 1 warning sign in our investment analysis , 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.
