Ningbo Tuopu Group Co.,Ltd. (SHSE:601689) Just Released Its Annual Earnings: Here's What Analysts Think

Investors in Ningbo Tuopu Group Co.,Ltd. (SHSE:601689) had a good week, as its shares rose 2.1% to close at CN¥61.52 following the release of its full-year results. Results look mixed - while revenue fell marginally short of analyst estimates at CN¥20b, statutory earnings were in line with expectations, at CN¥1.95 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Ningbo Tuopu GroupLtd

Taking into account the latest results, the consensus forecast from Ningbo Tuopu GroupLtd's 19 analysts is for revenues of CN¥27.3b in 2024. This reflects a huge 38% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 28% to CN¥2.49. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥27.8b and earnings per share (EPS) of CN¥2.63 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

The consensus price target held steady at CN¥79.17, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. Currently, the most bullish analyst values Ningbo Tuopu GroupLtd at CN¥105 per share, while the most bearish prices it at CN¥45.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Ningbo Tuopu GroupLtd's rate of growth is expected to accelerate meaningfully, with the forecast 38% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 31% p.a. 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 16% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Ningbo Tuopu GroupLtd to grow faster 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 Ningbo Tuopu GroupLtd. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Ningbo Tuopu GroupLtd going out to 2025, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 1 warning sign for Ningbo Tuopu GroupLtd 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.