Zhejiang Huatie Emergency Equipment Science & Technology Co.,Ltd. (SHSE:603300) Just Reported, And Analysts Assigned A CN¥6.72 Price Target

Zhejiang Huatie Emergency Equipment Science & Technology Co.,Ltd. (SHSE:603300) shareholders are probably feeling a little disappointed, since its shares fell 4.8% to CN¥4.41 in the week after its latest quarterly results. Zhejiang Huatie Emergency Equipment Science & TechnologyLtd reported in line with analyst predictions, delivering revenues of CN¥1.1b and statutory earnings per share of CN¥0.41, suggesting the business is executing well and in line with its plan. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Zhejiang Huatie Emergency Equipment Science & TechnologyLtd

Following the latest results, Zhejiang Huatie Emergency Equipment Science & TechnologyLtd's six analysts are now forecasting revenues of CN¥5.69b in 2024. This would be a decent 17% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 11% to CN¥0.46. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥5.96b and earnings per share (EPS) of CN¥0.51 in 2024. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.

It'll come as no surprise then, to learn that the analysts have cut their price target 14% to CN¥6.72. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Zhejiang Huatie Emergency Equipment Science & TechnologyLtd, with the most bullish analyst valuing it at CN¥7.65 and the most bearish at CN¥5.50 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. It's pretty clear that there is an expectation that Zhejiang Huatie Emergency Equipment Science & TechnologyLtd's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 23% growth on an annualised basis. This is compared to a historical growth rate of 32% 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 8.2% annually. So it's pretty clear that, while Zhejiang Huatie Emergency Equipment Science & TechnologyLtd's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Zhejiang Huatie Emergency Equipment Science & TechnologyLtd. They also downgraded Zhejiang Huatie Emergency Equipment Science & TechnologyLtd's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Zhejiang Huatie Emergency Equipment Science & TechnologyLtd's future valuation.

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

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Zhejiang Huatie Emergency Equipment Science & TechnologyLtd , and understanding this should be part of your investment process.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.