Jiangling Motors Corporation, Ltd. (SZSE:000550) Just Reported And Analysts Have Been Lifting Their Price Targets

As you might know, Jiangling Motors Corporation, Ltd. (SZSE:000550) recently reported its annual numbers. Jiangling Motors Corporation reported in line with analyst predictions, delivering revenues of CN¥33b and statutory earnings per share of CN¥1.71, suggesting the business is executing well and in line with its plan. 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.

See our latest analysis for Jiangling Motors Corporation

Following the latest results, Jiangling Motors Corporation's three analysts are now forecasting revenues of CN¥40.4b in 2024. This would be a sizeable 22% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 9.2% to CN¥1.87. Before this earnings report, the analysts had been forecasting revenues of CN¥42.4b and earnings per share (EPS) of CN¥1.83 in 2024. If anything, the analysts look to have become slightly more optimistic overall; while they decreased their revenue forecasts, EPS predictions increased and ultimately earnings are more important.

The average price target rose 8.0% to CN¥36.20, with the analysts signalling that the improved earnings outlook is the key driver of value for shareholders - enough to offset the reduction in revenue estimates. 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. Currently, the most bullish analyst values Jiangling Motors Corporation at CN¥39.60 per share, while the most bearish prices it at CN¥34.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Jiangling Motors Corporation is an easy business to forecast or the the analysts are all using similar assumptions.

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. The analysts are definitely expecting Jiangling Motors Corporation's growth to accelerate, with the forecast 22% annualised growth to the end of 2024 ranking favourably alongside historical growth of 3.2% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 20% annually. Jiangling Motors Corporation is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Jiangling Motors Corporation following these results. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. Yet - earnings are more important to the intrinsic value of the business. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Jiangling Motors Corporation. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Jiangling Motors Corporation analysts - going out to 2026, and you can see them free on our platform here.

Even so, be aware that Jiangling Motors Corporation is showing 2 warning signs 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.