Analysts Have Made A Financial Statement On Zhejiang Weixing Industrial Development Co., Ltd.'s (SZSE:002003) Yearly Report

Zhejiang Weixing Industrial Development Co., Ltd. (SZSE:002003) shareholders are probably feeling a little disappointed, since its shares fell 6.1% to CN¥12.22 in the week after its latest annual results. Results were roughly in line with estimates, with revenues of CN¥4.7b and statutory earnings per share of CN¥0.60. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the consensus forecast from Zhejiang Weixing Industrial Development's ten analysts is for revenues of CN¥5.14b in 2025. This reflects a decent 9.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 10% to CN¥0.66. Before this earnings report, the analysts had been forecasting revenues of CN¥5.26b and earnings per share (EPS) of CN¥0.74 in 2025. 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.

View our latest analysis for Zhejiang Weixing Industrial Development

Despite the cuts to forecast earnings, there was no real change to the CN¥15.05 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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 Zhejiang Weixing Industrial Development, with the most bullish analyst valuing it at CN¥15.84 and the most bearish at CN¥14.15 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Zhejiang Weixing Industrial Development's past performance and to peers in the same industry. We would highlight that Zhejiang Weixing Industrial Development's revenue growth is expected to slow, with the forecast 9.9% annualised growth rate until the end of 2025 being well below the historical 12% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 12% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Zhejiang Weixing Industrial Development.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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. The consensus price target held steady at CN¥15.05, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Zhejiang Weixing Industrial Development going out to 2027, 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 Weixing Industrial Development , and understanding it should be part of your investment process.

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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.