Analyst Estimates: Here's What Brokers Think Of Ningbo Tuopu Group Co.,Ltd. (SHSE:601689) After Its Second-Quarter Report

It's been a mediocre week for Ningbo Tuopu Group Co.,Ltd. (SHSE:601689) shareholders, with the stock dropping 12% to CN¥35.41 in the week since its latest quarterly results. The results were positive, with revenue coming in at CN¥6.5b, beating analyst expectations by 9.3%. 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.

See our latest analysis for Ningbo Tuopu GroupLtd

Following the latest results, Ningbo Tuopu GroupLtd's 20 analysts are now forecasting revenues of CN¥26.9b in 2024. This would be a solid 18% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 18% to CN¥1.76. In the lead-up to this report, the analysts had been modelling revenues of CN¥26.4b and earnings per share (EPS) of CN¥1.73 in 2024. 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¥53.92, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Ningbo Tuopu GroupLtd, with the most bullish analyst valuing it at CN¥60.00 and the most bearish at CN¥42.76 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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 analysts are definitely expecting Ningbo Tuopu GroupLtd's growth to accelerate, with the forecast 40% annualised growth to the end of 2024 ranking favourably alongside historical growth of 32% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 17% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Ningbo Tuopu GroupLtd is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at CN¥53.92, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Ningbo Tuopu GroupLtd analysts - going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Ningbo Tuopu GroupLtd has 2 warning signs we think 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.

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