Analyst Estimates: Here's What Brokers Think Of Changzhou Xingyu Automotive Lighting Systems Co.,Ltd. (SHSE:601799) After Its Annual Report

Investors in Changzhou Xingyu Automotive Lighting Systems Co.,Ltd. (SHSE:601799) had a good week, as its shares rose 6.6% to close at CN¥134 following the release of its annual results. Revenues of CN¥13b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at CN¥4.93, missing estimates by 2.3%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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 most recent consensus for Changzhou Xingyu Automotive Lighting SystemsLtd from 13 analysts is for revenues of CN¥16.4b in 2025. If met, it would imply a substantial 24% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 28% to CN¥6.33. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥16.2b and earnings per share (EPS) of CN¥6.57 in 2025. 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.

See our latest analysis for Changzhou Xingyu Automotive Lighting SystemsLtd

It might be a surprise to learn that the consensus price target was broadly unchanged at CN¥176, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. The most optimistic Changzhou Xingyu Automotive Lighting SystemsLtd analyst has a price target of CN¥204 per share, while the most pessimistic values it at CN¥156. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Changzhou Xingyu Automotive Lighting SystemsLtd is an easy business to forecast or the the analysts are all using similar assumptions.

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 Changzhou Xingyu Automotive Lighting SystemsLtd's growth to accelerate, with the forecast 24% annualised growth to the end of 2025 ranking favourably alongside historical growth of 14% 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 18% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Changzhou Xingyu Automotive Lighting SystemsLtd is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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¥176, 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 estimates - from multiple Changzhou Xingyu Automotive Lighting SystemsLtd analysts - going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Changzhou Xingyu Automotive Lighting SystemsLtd 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.