Ningbo Tuopu Group Co.,Ltd. (SHSE:601689) Just Reported Annual Earnings: Have Analysts Changed Their Mind On The Stock?

Investors in Ningbo Tuopu Group Co.,Ltd. (SHSE:601689) had a good week, as its shares rose 5.6% to close at CN¥57.37 following the release of its yearly 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Ningbo Tuopu GroupLtd

Following the latest results, Ningbo Tuopu GroupLtd's 18 analysts are now forecasting revenues of CN¥26.4b in 2024. This would be a huge 34% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 35% to CN¥2.50. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥26.8b and earnings per share (EPS) of CN¥2.56 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at CN¥77.03, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Ningbo Tuopu GroupLtd at CN¥105 per share, while the most bearish prices it at CN¥45.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Ningbo Tuopu GroupLtd'shistorical trends, as the 34% annualised revenue growth to the end of 2024 is roughly in line with the 31% 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 18% per year. So although Ningbo Tuopu GroupLtd is expected to maintain its revenue growth rate, it's definitely expected 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. We have forecasts for Ningbo Tuopu GroupLtd 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 2 warning signs for Ningbo Tuopu GroupLtd 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.