Gree Electric Appliances, Inc. of Zhuhai (SZSE:000651) Half-Year Results: Here's What Analysts Are Forecasting For This Year

Shareholders might have noticed that Gree Electric Appliances, Inc. of Zhuhai (SZSE:000651) filed its interim result this time last week. The early response was not positive, with shares down 5.6% to CN¥39.70 in the past week. Revenues came in 3.4% below expectations, at CN¥100b. Statutory earnings per share were relatively better off, with a per-share profit of CN¥1.71 being roughly in line with analyst estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Gree Electric Appliances of Zhuhai

Following last week's earnings report, Gree Electric Appliances of Zhuhai's 24 analysts are forecasting 2024 revenues to be CN¥207.6b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be CN¥5.63, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥216.5b and earnings per share (EPS) of CN¥5.48 in 2024. If anything, the analysts look to have become slightly more optimistic overall; while they decreased their revenue forecasts, EPS predictions increased and ultimately earnings are more important.

The consensus has made no major changes to the price target of CN¥48.53, suggesting the forecast improvement in earnings is expected to offset the decline in revenues next year. 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. There are some variant perceptions on Gree Electric Appliances of Zhuhai, with the most bullish analyst valuing it at CN¥61.05 and the most bearish at CN¥33.80 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Gree Electric Appliances of Zhuhai shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Gree Electric Appliances of Zhuhai's past performance and to peers in the same industry. The analysts are definitely expecting Gree Electric Appliances of Zhuhai's growth to accelerate, with the forecast 3.1% annualised growth to the end of 2024 ranking favourably alongside historical growth of 1.5% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 8.6% annually. So it's clear that despite the acceleration in growth, Gree Electric Appliances of Zhuhai is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Gree Electric Appliances of Zhuhai following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Gree Electric Appliances of Zhuhai. Long-term earnings power is much more important than next year's profits. We have forecasts for Gree Electric Appliances of Zhuhai going out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Gree Electric Appliances of Zhuhai that you need to be mindful of.

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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.