Anhui Zhongding Sealing Parts Co., Ltd. (SZSE:000887) First-Quarter Results: Here's What Analysts Are Forecasting For This Year

It's been a good week for Anhui Zhongding Sealing Parts Co., Ltd. (SZSE:000887) shareholders, because the company has just released its latest first-quarter results, and the shares gained 2.8% to CN¥13.15. Results overall were respectable, with statutory earnings of CN¥0.86 per share roughly in line with what the analysts had forecast. Revenues of CN¥4.7b came in 2.9% ahead of analyst predictions. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Anhui Zhongding Sealing Parts

Following the latest results, Anhui Zhongding Sealing Parts' five analysts are now forecasting revenues of CN¥19.6b in 2024. This would be a notable 8.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 18% to CN¥1.10. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥19.5b and earnings per share (EPS) of CN¥1.05 in 2024. So the consensus seems to have become somewhat more optimistic on Anhui Zhongding Sealing Parts' earnings potential following these results.

The consensus price target was unchanged at CN¥15.62, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders.

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 Anhui Zhongding Sealing Parts' rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 9.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 19% annually. So it's clear that despite the acceleration in growth, Anhui Zhongding Sealing Parts is expected to grow meaningfully slower than the industry average.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Anhui Zhongding Sealing Parts' earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at CN¥15.62, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Anhui Zhongding Sealing Parts going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Anhui Zhongding Sealing Parts 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.