Investors in Changchun High-Tech Industry (Group) Co., Ltd. (SZSE:000661) had a good week, as its shares rose 3.4% to close at CN¥108 following the release of its third-quarter results. Revenues were CN¥3.7b, 19% below analyst expectations, although losses didn't appear to worsen significantly, with a per-share statutory loss of CN¥11.06 being in line with what the analysts forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Following the latest results, Changchun High-Tech Industry (Group)'s ten analysts are now forecasting revenues of CN¥17.5b in 2025. This would be a huge 23% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 38% to CN¥12.78. In the lead-up to this report, the analysts had been modelling revenues of CN¥17.6b and earnings per share (EPS) of CN¥12.89 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¥162, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Changchun High-Tech Industry (Group) at CN¥190 per share, while the most bearish prices it at CN¥135. 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.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Changchun High-Tech Industry (Group)'shistorical trends, as the 18% annualised revenue growth to the end of 2025 is roughly in line with the 16% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 13% annually. So it's pretty clear that Changchun High-Tech Industry (Group) is forecast to grow substantially faster than its industry.
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. 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. The consensus price target held steady at CN¥162, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Changchun High-Tech Industry (Group) analysts - going out to 2026, and you can see them free on our platform here.
You can also see our analysis of Changchun High-Tech Industry (Group)'s Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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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.
