CCCC Design & Consulting Group Co., Ltd. (SHSE:600720) Consensus Forecasts Have Become A Little Darker Since Its Latest Report

CCCC Design & Consulting Group Co., Ltd. (SHSE:600720) just released its latest full-year report and things are not looking great. Results look to have been somewhat negative - revenue fell 4.8% short of analyst estimates at CN¥12b, and statutory earnings of CN¥0.83 per share missed forecasts by 3.9%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on CCCC Design & Consulting Group after the latest results.

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Taking into account the latest results, the current consensus, from the three analysts covering CCCC Design & Consulting Group, is for revenues of CN¥11.9b in 2025. This implies a discernible 3.9% reduction in CCCC Design & Consulting Group's revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 3.5% to CN¥0.79. Before this earnings report, the analysts had been forecasting revenues of CN¥13.8b and earnings per share (EPS) of CN¥0.95 in 2025. It looks like sentiment has declined substantially in the aftermath of these results, with a substantial drop in revenue estimates and a substantial drop in earnings per share numbers as well.

Check out our latest analysis for CCCC Design & Consulting Group

The consensus price target fell 8.3% to CN¥11.88, with the weaker earnings outlook clearly leading valuation estimates.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that revenue is expected to reverse, with a forecast 3.9% annualised decline to the end of 2025. That is a notable change from historical growth of 16% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 8.4% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - CCCC Design & Consulting Group is expected to lag the wider 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. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 CCCC Design & Consulting Group analysts - going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with CCCC Design & Consulting Group (including 1 which makes us a bit uncomfortable) .

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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.