As you might know, Hengtong Optic-Electric Co., Ltd. (SHSE:600487) just kicked off its latest third-quarter results with some very strong numbers. It was a solid earnings report, with revenues and statutory earnings per share (EPS) both coming in strong. Revenues were 17% higher than the analysts had forecast, at CN¥16b, while EPS were CN¥0.29 beating analyst models by 32%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Hengtong Optic-Electric after the latest results.
Taking into account the latest results, the consensus forecast from Hengtong Optic-Electric's eight analysts is for revenues of CN¥62.8b in 2025. This reflects a notable 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 23% to CN¥1.35. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥62.4b and earnings per share (EPS) of CN¥1.36 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.
The analysts reconfirmed their price target of CN¥18.05, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Hengtong Optic-Electric, with the most bullish analyst valuing it at CN¥23.58 and the most bearish at CN¥11.50 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
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 period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 11% growth on an annualised basis. That is in line with its 11% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 22% annually. So although Hengtong Optic-Electric is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider 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, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Hengtong Optic-Electric's revenue is expected to perform worse than the wider industry. The consensus price target held steady at CN¥18.05, 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. At Simply Wall St, we have a full range of analyst estimates for Hengtong Optic-Electric 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 1 warning sign for Hengtong Optic-Electric 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.
