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Sinoseal Holding Co., Ltd. Just Missed EPS By 12%: Here's What Analysts Think Will Happen Next

Sinoseal Holding Co., Ltd. Just Missed EPS By 12%: Here's What Analysts Think Will Happen Next

中密控股有限公司的每股收益僅相對低了12%:分析師認爲接下來會發生什麼
Simply Wall St ·  11/01 07:44

As you might know, Sinoseal Holding Co., Ltd. (SZSE:300470) recently reported its quarterly numbers. It was not a great result overall. Although revenues beat expectations, hitting CN¥419m, statutory earnings missed analyst forecasts by 12%, coming in at just CN¥0.47 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Sinoseal Holding after the latest results.

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SZSE:300470 Earnings and Revenue Growth October 31st 2024

Taking into account the latest results, the most recent consensus for Sinoseal Holding from four analysts is for revenues of CN¥1.73b in 2025. If met, it would imply a notable 14% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to step up 17% to CN¥2.12. In the lead-up to this report, the analysts had been modelling revenues of CN¥1.73b and earnings per share (EPS) of CN¥2.20 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

The consensus price target held steady at CN¥49.59, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Sinoseal Holding at CN¥51.00 per share, while the most bearish prices it at CN¥48.18. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Sinoseal Holding is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Sinoseal Holding's past performance and to peers in the same 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 12% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 16% per year. So although Sinoseal Holding is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Sinoseal Holding. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at CN¥49.59, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Sinoseal Holding. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Sinoseal Holding analysts - going out to 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Sinoseal Holding you should know about.

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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.

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