It's been a good week for Zhejiang Huayou Cobalt Co., Ltd (SHSE:603799) shareholders, because the company has just released its latest third-quarter results, and the shares gained 7.8% to CN¥30.76. Results look mixed - while revenue fell marginally short of analyst estimates at CN¥30b, statutory earnings were in line with expectations, at CN¥0.80 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Following the latest results, Zhejiang Huayou Cobalt's eleven analysts are now forecasting revenues of CN¥78.4b in 2025. This would be a major 29% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 12% to CN¥2.25. Before this earnings report, the analysts had been forecasting revenues of CN¥78.4b and earnings per share (EPS) of CN¥2.22 in 2025. 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¥29.75, showing that the business is executing well and in line with expectations. 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 Zhejiang Huayou Cobalt, with the most bullish analyst valuing it at CN¥38.30 and the most bearish at CN¥21.40 per share. 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Zhejiang Huayou Cobalt's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 23% growth on an annualised basis. This is compared to a historical growth rate of 29% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.7% annually. Even after the forecast slowdown in growth, it seems obvious that Zhejiang Huayou Cobalt is also expected to grow faster than the wider industry.

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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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. At Simply Wall St, we have a full range of analyst estimates for Zhejiang Huayou Cobalt going out to 2026, and you can see them free on our platform here..

It is also worth noting that we have found 2 warning signs for Zhejiang Huayou Cobalt (1 is a bit unpleasant!) that you need to take into consideration.

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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.