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Analysts Have Made A Financial Statement On Unisplendour Corporation Limited's (SZSE:000938) Third-Quarter Report

Simply Wall St ·  Nov 3, 2024 08:24

As you might know, Unisplendour Corporation Limited (SZSE:000938) recently reported its quarterly numbers. Unisplendour reported in line with analyst predictions, delivering revenues of CN¥21b and statutory earnings per share of CN¥0.73, suggesting the business is executing well and in line with its plan. 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.

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SZSE:000938 Earnings and Revenue Growth November 3rd 2024

After the latest results, the 13 analysts covering Unisplendour are now predicting revenues of CN¥93.6b in 2025. If met, this would reflect a meaningful 16% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 33% to CN¥1.00. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥94.0b and earnings per share (EPS) of CN¥1.01 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.

The analysts reconfirmed their price target of CN¥26.26, showing that the business is executing well and in line with expectations. 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. There are some variant perceptions on Unisplendour, with the most bullish analyst valuing it at CN¥30.91 and the most bearish at CN¥22.50 per share. 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.

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. It's clear from the latest estimates that Unisplendour's rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 8.8% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 18% annually. So it's clear that despite the acceleration in growth, Unisplendour is expected to grow meaningfully slower than the industry average.

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 Unisplendour's revenue is expected to perform worse than the wider industry. The consensus price target held steady at CN¥26.26, 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 estimates - from multiple Unisplendour analysts - going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Unisplendour (1 is a bit concerning!) that you should be aware of.

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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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