Shenzhen Kedali Industry Co., Ltd. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

As you might know, Shenzhen Kedali Industry Co., Ltd. (SZSE:002850) recently reported its full-year numbers. Revenues CN¥11b disappointed slightly, at4.0% below what the analysts had predicted. Profits were a relative bright spot, with statutory per-share earnings of CN¥4.79 coming in 11% above what was anticipated. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Shenzhen Kedali Industry

Taking into account the latest results, the consensus forecast from Shenzhen Kedali Industry's ten analysts is for revenues of CN¥13.0b in 2024. This reflects a major 24% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 20% to CN¥5.32. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥13.8b and earnings per share (EPS) of CN¥5.37 in 2024. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.

The consensus price target rose 5.4% to CN¥108, with the analysts apparently satisfied with the business performance despite lower revenue forecasts. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Shenzhen Kedali Industry analyst has a price target of CN¥120 per share, while the most pessimistic values it at CN¥97.30. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Shenzhen Kedali Industry 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. It's pretty clear that there is an expectation that Shenzhen Kedali Industry's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 24% growth on an annualised basis. This is compared to a historical growth rate of 40% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 19% annually. Even after the forecast slowdown in growth, it seems obvious that Shenzhen Kedali Industry is also expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also downgraded Shenzhen Kedali Industry's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Even so, earnings per share 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Shenzhen Kedali Industry analysts - going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 3 warning signs for Shenzhen Kedali Industry you should be aware of, and 1 of them is concerning.

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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.