The Zhejiang Weixing New Building Materials Co., Ltd. (SZSE:002372) Annual Results Are Out And Analysts Have Published New Forecasts

Zhejiang Weixing New Building Materials Co., Ltd. (SZSE:002372) last week reported its latest yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Zhejiang Weixing New Building Materials reported CN¥6.4b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of CN¥0.90 beat expectations, being 2.2% higher than what the analysts expected. 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. 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 Weixing New Building Materials

Following the latest results, Zhejiang Weixing New Building Materials' 17 analysts are now forecasting revenues of CN¥6.99b in 2024. This would be a notable 9.6% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be CN¥0.93, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of CN¥6.99b and earnings per share (EPS) of CN¥0.97 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at CN¥20.23, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Zhejiang Weixing New Building Materials at CN¥23.80 per share, while the most bearish prices it at CN¥16.50. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 9.6% growth on an annualised basis. That is in line with its 9.7% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 16% annually. So it's pretty clear that Zhejiang Weixing New Building Materials is expected to grow slower than similar companies in the same industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Zhejiang Weixing New Building Materials. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 Zhejiang Weixing New Building Materials analysts - going out to 2026, and you can see them free on our platform here.

Even so, be aware that Zhejiang Weixing New Building Materials is showing 1 warning sign in our investment analysis , you should know about...

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