Contemporary Amperex Technology Co., Limited (SZSE:300750) Just Reported Annual Earnings: Have Analysts Changed Their Mind On The Stock?

The full-year results for Contemporary Amperex Technology Co., Limited (SZSE:300750) were released last week, making it a good time to revisit its performance. Contemporary Amperex Technology reported in line with analyst predictions, delivering revenues of CN¥362b and statutory earnings per share of CN¥11.58, suggesting the business is executing well and in line with its plan. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Contemporary Amperex Technology

Taking into account the latest results, the consensus forecast from Contemporary Amperex Technology's 32 analysts is for revenues of CN¥441.1b in 2025. This reflects a huge 22% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 29% to CN¥14.96. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥445.9b and earnings per share (EPS) of CN¥14.47 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at CN¥342, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. There are some variant perceptions on Contemporary Amperex Technology, with the most bullish analyst valuing it at CN¥413 and the most bearish at CN¥208 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Contemporary Amperex Technology's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 22% growth on an annualised basis. This is compared to a historical growth rate of 42% 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 17% annually. So it's pretty clear that, while Contemporary Amperex Technology's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Contemporary Amperex Technology's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster 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.

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 estimates - from multiple Contemporary Amperex Technology analysts - going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Contemporary Amperex Technology that you need to take into consideration.

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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.