Shanghai Yanpu Metal Products Co.,Ltd (SHSE:605128) Just Reported And Analysts Have Been Lifting Their Price Targets

As you might know, Shanghai Yanpu Metal Products Co.,Ltd (SHSE:605128) recently reported its yearly numbers. Revenues came in 4.3% below expectations, at CN¥2.3b. Statutory earnings per share were relatively better off, with a per-share profit of CN¥1.15 being roughly in line with analyst estimates. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the current consensus from Shanghai Yanpu Metal ProductsLtd's twin analysts is for revenues of CN¥3.07b in 2025. This would reflect a huge 35% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 38% to CN¥1.46. Before this earnings report, the analysts had been forecasting revenues of CN¥3.10b and earnings per share (EPS) of CN¥1.81 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.

View our latest analysis for Shanghai Yanpu Metal ProductsLtd

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 17% to CN¥41.00, suggesting the revised estimates are not indicative of a weaker long-term future for the business.

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. It's clear from the latest estimates that Shanghai Yanpu Metal ProductsLtd's rate of growth is expected to accelerate meaningfully, with the forecast 35% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 24% 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 18% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Shanghai Yanpu Metal ProductsLtd 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Shanghai Yanpu Metal ProductsLtd. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Shanghai Yanpu Metal ProductsLtd going out as far as 2027, and you can see them free on our platform here.

Even so, be aware that Shanghai Yanpu Metal ProductsLtd is showing 1 warning sign in our investment analysis , 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.