Investors in Zhongfu Shenying Carbon Fiber Co.,Ltd. (SHSE:688295) had a good week, as its shares rose 3.7% to close at CN¥22.18 following the release of its third-quarter results. Revenues were CN¥380m, 17% below analyst expectations, although losses didn't appear to worsen significantly, with a per-share statutory loss of CN¥0.35 being in line with what the analysts forecast. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
After the latest results, the nine analysts covering Zhongfu Shenying Carbon FiberLtd are now predicting revenues of CN¥2.63b in 2025. If met, this would reflect a major 49% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 1,933% to CN¥0.37. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥2.64b and earnings per share (EPS) of CN¥0.35 in 2025. So the consensus seems to have become somewhat more optimistic on Zhongfu Shenying Carbon FiberLtd's earnings potential following these results.
The consensus price target was unchanged at CN¥28.18, 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 Zhongfu Shenying Carbon FiberLtd analyst has a price target of CN¥40.98 per share, while the most pessimistic values it at CN¥20.01. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Zhongfu Shenying Carbon FiberLtd's growth to accelerate, with the forecast 37% annualised growth to the end of 2025 ranking favourably alongside historical growth of 23% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Zhongfu Shenying Carbon FiberLtd is expected to grow much faster than its industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Zhongfu Shenying Carbon FiberLtd'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. 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.
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 Zhongfu Shenying Carbon FiberLtd going out to 2026, and you can see them free on our platform here..
Before you take the next step you should know about the 2 warning signs for Zhongfu Shenying Carbon FiberLtd that we have uncovered.
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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.
