Sichuan Chuanhuan Technology Co.,Ltd. (SZSE:300547) Analysts Are Pretty Bullish On The Stock After Recent Results

It's been a pretty great week for Sichuan Chuanhuan Technology Co.,Ltd. (SZSE:300547) shareholders, with its shares surging 13% to CN¥19.00 in the week since its latest yearly results. Sichuan Chuanhuan TechnologyLtd reported in line with analyst predictions, delivering revenues of CN¥1.1b and statutory earnings per share of CN¥0.76, 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 expert is forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.

See our latest analysis for Sichuan Chuanhuan TechnologyLtd

Taking into account the latest results, the consensus forecast from Sichuan Chuanhuan TechnologyLtd's sole analyst is for revenues of CN¥1.51b in 2024. This reflects a major 36% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 50% to CN¥1.19. In the lead-up to this report, the analyst had been modelling revenues of CN¥1.48b and earnings per share (EPS) of CN¥1.09 in 2024. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

With these upgrades, we're not surprised to see that the analyst has lifted their price target 25% to CN¥25.00per share.

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 Sichuan Chuanhuan TechnologyLtd's rate of growth is expected to accelerate meaningfully, with the forecast 36% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 14% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 16% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Sichuan Chuanhuan TechnologyLtd to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Sichuan Chuanhuan TechnologyLtd's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Sichuan Chuanhuan TechnologyLtd going out as far as 2025, 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 Sichuan Chuanhuan TechnologyLtd 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.