AIMA Technology Group CO., LTD Recorded A 11% Miss On Revenue: Analysts Are Revisiting Their Models

Investors in AIMA Technology Group CO., LTD (SHSE:603529) had a good week, as its shares rose 6.1% to close at CN¥35.28 following the release of its first-quarter results. Revenues were CN¥5.0b, 11% below analyst expectations, although losses didn't appear to worsen significantly, with a per-share statutory loss of CN¥2.12 being in line with what the analysts forecast. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for AIMA Technology Group

Taking into account the latest results, the most recent consensus for AIMA Technology Group from eight analysts is for revenues of CN¥24.7b in 2024. If met, it would imply a huge 20% increase on its revenue over the past 12 months. Per-share earnings are expected to ascend 18% to CN¥2.63. In the lead-up to this report, the analysts had been modelling revenues of CN¥24.8b and earnings per share (EPS) of CN¥2.61 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.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 6.3% to CN¥44.50. It looks as though they previously had some doubts over whether the business would live up to their 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 AIMA Technology Group, with the most bullish analyst valuing it at CN¥49.10 and the most bearish at CN¥42.00 per share. This is a very narrow spread of estimates, implying either that AIMA Technology Group is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting AIMA Technology Group's growth to accelerate, with the forecast 28% annualised growth to the end of 2024 ranking favourably alongside historical growth of 15% per annum over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 19% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that AIMA Technology Group 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. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for AIMA Technology Group going out to 2026, and you can see them free on our platform here..

It is also worth noting that we have found 1 warning sign for AIMA Technology Group that you need to take into consideration.

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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.