Guangdong KinLong Hardware Products Co.,Ltd. Just Missed EPS By 31%: Here's What Analysts Think Will Happen Next

As you might know, Guangdong KinLong Hardware Products Co.,Ltd. (SZSE:002791) last week released its latest annual, and things did not turn out so great for shareholders. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at CN¥6.6b, statutory earnings missed forecasts by an incredible 31%, coming in at just CN¥0.27 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Taking into account the latest results, the consensus forecast from Guangdong KinLong Hardware ProductsLtd's eight analysts is for revenues of CN¥6.78b in 2025. This reflects a reasonable 2.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 197% to CN¥0.77. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥7.81b and earnings per share (EPS) of CN¥1.12 in 2025. Indeed, we can see that the analysts are a lot more bearish about Guangdong KinLong Hardware ProductsLtd's prospects following the latest results, administering a real cut to revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for Guangdong KinLong Hardware ProductsLtd

The analysts made no major changes to their price target of CN¥29.24, suggesting the downgrades are not expected to have a long-term impact on Guangdong KinLong Hardware ProductsLtd's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Guangdong KinLong Hardware ProductsLtd, with the most bullish analyst valuing it at CN¥43.37 and the most bearish at CN¥17.60 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Guangdong KinLong Hardware ProductsLtd's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.2% growth on an annualised basis. This is compared to a historical growth rate of 4.4% 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 12% per year. Factoring in the forecast slowdown in growth, it seems obvious that Guangdong KinLong Hardware ProductsLtd is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Guangdong KinLong Hardware ProductsLtd. 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. 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Guangdong KinLong Hardware ProductsLtd going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Guangdong KinLong Hardware ProductsLtd that we have uncovered.

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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.