Analysts Have Made A Financial Statement On Huali Industrial Group Company Limited's (SZSE:300979) Half-Yearly Report

Huali Industrial Group Company Limited (SZSE:300979) investors will be delighted, with the company turning in some strong numbers with its latest results. Results were good overall, with revenues beating analyst predictions by 3.3% to hit CN¥6.7b. Statutory earnings per share (EPS) came in at CN¥0.94, some 2.2% above whatthe analysts had expected. 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.

See our latest analysis for Huali Industrial Group

Taking into account the latest results, the current consensus from Huali Industrial Group's 13 analysts is for revenues of CN¥24.1b in 2024. This would reflect an okay 7.6% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 7.5% to CN¥3.34. In the lead-up to this report, the analysts had been modelling revenues of CN¥23.9b and earnings per share (EPS) of CN¥3.33 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at CN¥76.68. 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. Currently, the most bullish analyst values Huali Industrial Group at CN¥81.00 per share, while the most bearish prices it at CN¥73.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Huali Industrial Group is an easy business to forecast or the the analysts are all using similar assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Huali Industrial Group's growth to accelerate, with the forecast 16% annualised growth to the end of 2024 ranking favourably alongside historical growth of 9.7% per annum over the past three years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 13% per year. Huali Industrial Group is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at CN¥76.68, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Huali Industrial Group analysts - going out to 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Huali Industrial Group you should know about.

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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.