Xi'an Shaangu Power Co., Ltd. (SHSE:601369) Consensus Forecasts Have Become A Little Darker Since Its Latest Report

It's been a good week for Xi'an Shaangu Power Co., Ltd. (SHSE:601369) shareholders, because the company has just released its latest full-year results, and the shares gained 6.8% to CN¥9.70. Results look mixed - while revenue fell marginally short of analyst estimates at CN¥10b, statutory earnings were in line with expectations, at CN¥0.59 per share. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Xi'an Shaangu Power

Taking into account the latest results, the most recent consensus for Xi'an Shaangu Power from four analysts is for revenues of CN¥11.7b in 2024. If met, it would imply a notable 15% increase on its revenue over the past 12 months. Per-share earnings are expected to ascend 12% to CN¥0.67. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥12.8b and earnings per share (EPS) of CN¥0.71 in 2024. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

What's most unexpected is that the consensus price target rose 17% to CN¥11.15, strongly implying the downgrade to forecasts is not expected to be more than a temporary blip.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Xi'an Shaangu Power's past performance and to peers in the same industry. The analysts are definitely expecting Xi'an Shaangu Power's growth to accelerate, with the forecast 15% annualised growth to the end of 2024 ranking favourably alongside historical growth of 12% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 18% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Xi'an Shaangu Power is expected to grow at about the same rate as the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Xi'an Shaangu Power. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Xi'an Shaangu Power analysts - going out to 2026, and you can see them free on our platform here.

Even so, be aware that Xi'an Shaangu Power is showing 1 warning sign 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.