Shareholders might have noticed that Zhejiang Sanhua Intelligent Controls Co.,Ltd (SZSE:002050) filed its third-quarter result this time last week. The early response was not positive, with shares down 6.6% to CN¥21.53 in the past week. It looks like the results were a bit of a negative overall. While revenues of CN¥6.9b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 6.3% to hit CN¥0.21 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Taking into account the latest results, the consensus forecast from Zhejiang Sanhua Intelligent ControlsLtd's 18 analysts is for revenues of CN¥33.1b in 2025. This reflects a substantial 27% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 30% to CN¥1.07. In the lead-up to this report, the analysts had been modelling revenues of CN¥33.2b and earnings per share (EPS) of CN¥1.08 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at CN¥26.16. 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 Sanhua Intelligent ControlsLtd analyst has a price target of CN¥31.00 per share, while the most pessimistic values it at CN¥21.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Zhejiang Sanhua Intelligent ControlsLtd'shistorical trends, as the 21% annualised revenue growth to the end of 2025 is roughly in line with the 20% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 17% annually. It's clear that while Zhejiang Sanhua Intelligent ControlsLtd's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at CN¥26.16, 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 forecasts for Zhejiang Sanhua Intelligent ControlsLtd going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Zhejiang Sanhua Intelligent ControlsLtd you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.