Zhejiang Dun'an Artificial Environment Co., Ltd (SZSE:002011) last week reported its latest third-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Revenues came in 3.6% below expectations, at CN¥3.0b. Statutory earnings per share were relatively better off, with a per-share profit of CN¥0.70 being roughly in line with analyst estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Following the latest results, Zhejiang Dun'an Artificial Environment's six analysts are now forecasting revenues of CN¥14.3b in 2025. This would be a decent 16% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 35% to CN¥1.08. Before this earnings report, the analysts had been forecasting revenues of CN¥14.2b and earnings per share (EPS) of CN¥1.09 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of CN¥15.91, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Zhejiang Dun'an Artificial Environment analyst has a price target of CN¥16.28 per share, while the most pessimistic values it at CN¥15.45. This is a very narrow spread of estimates, implying either that Zhejiang Dun'an Artificial Environment is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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 Zhejiang Dun'an Artificial Environment's growth to accelerate, with the forecast 13% annualised growth to the end of 2025 ranking favourably alongside historical growth of 8.7% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. Zhejiang Dun'an Artificial Environment is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at CN¥15.91, with the latest estimates not enough to have an impact on their price targets.

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 Zhejiang Dun'an Artificial Environment going out to 2026, and you can see them free on our platform here.

We also provide an overview of the Zhejiang Dun'an Artificial Environment Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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