China State Construction Engineering Corporation Limited (SHSE:601668) Full-Year Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Investors in China State Construction Engineering Corporation Limited (SHSE:601668) had a good week, as its shares rose 7.0% to close at CN¥5.36 following the release of its yearly results. It was a credible result overall, with revenues of CN¥2.3t and statutory earnings per share of CN¥1.31 both in line with analyst estimates, showing that China State Construction Engineering is executing in line with expectations. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on China State Construction Engineering after the latest results.

View our latest analysis for China State Construction Engineering

Taking into account the latest results, the current consensus from China State Construction Engineering's twelve analysts is for revenues of CN¥2.43t in 2024. This would reflect a reasonable 7.2% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 7.3% to CN¥1.39. Before this earnings report, the analysts had been forecasting revenues of CN¥2.48t and earnings per share (EPS) of CN¥1.44 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

The consensus price target held steady at CN¥7.69, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic China State Construction Engineering analyst has a price target of CN¥10.29 per share, while the most pessimistic values it at CN¥6.60. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the China State Construction Engineering's past performance and to peers in the same industry. We would highlight that China State Construction Engineering's revenue growth is expected to slow, with the forecast 7.2% annualised growth rate until the end of 2024 being well below the historical 13% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 11% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than China State Construction Engineering.

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. 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¥7.69, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on China State Construction Engineering. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple China State Construction Engineering analysts - going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - China State Construction Engineering has 2 warning signs (and 1 which is potentially serious) we think 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.