Analysts Are Updating Their Huali Industrial Group Company Limited (SZSE:300979) Estimates After Its Half-Yearly Results

Huali Industrial Group Company Limited (SZSE:300979) just released its half-yearly report and things are looking bullish. The company beat expectations with revenues of CN¥6.7b arriving 3.3% ahead of forecasts. Statutory earnings per share (EPS) were CN¥0.94, 2.2% ahead of 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Huali Industrial Group

Following the latest results, Huali Industrial Group's 13 analysts are now forecasting revenues of CN¥23.9b in 2024. This would be a credible 6.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 7.4% to CN¥3.33. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥23.8b and earnings per share (EPS) of CN¥3.30 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of CN¥74.49, suggesting that the company has met expectations in its recent result. 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 Huali Industrial Group at CN¥81.00 per share, while the most bearish prices it at CN¥70.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Huali Industrial Group's past performance and to peers in the same industry. The analysts are definitely expecting Huali Industrial Group's growth to accelerate, with the forecast 14% annualised growth to the end of 2024 ranking favourably alongside historical growth of 9.7% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Huali Industrial Group is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Huali Industrial Group. Long-term earnings power is much more important than next year's profits. We have forecasts for Huali Industrial Group going out to 2026, 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 Huali Industrial Group , and understanding this 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.

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