Pingdingshan Tianan Coal. Mining Co., Ltd. (SHSE:601666) Released Earnings Last Week And Analysts Lifted Their Price Target To CN¥14.15

The annual results for Pingdingshan Tianan Coal. Mining Co., Ltd. (SHSE:601666) were released last week, making it a good time to revisit its performance. It was a credible result overall, with revenues of CN¥32b and statutory earnings per share of CN¥1.72 both in line with analyst estimates, showing that Pingdingshan Tianan Coal. Mining is executing in line with expectations. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Pingdingshan Tianan Coal. Mining

Taking into account the latest results, the most recent consensus for Pingdingshan Tianan Coal. Mining from six analysts is for revenues of CN¥32.6b in 2024. If met, it would imply a credible 3.2% increase on its revenue over the past 12 months. Per-share earnings are expected to swell 11% to CN¥1.81. In the lead-up to this report, the analysts had been modelling revenues of CN¥32.1b and earnings per share (EPS) of CN¥1.86 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

Despite cutting their earnings forecasts,the analysts have lifted their price target 37% to CN¥14.15, suggesting that these impacts are not expected to weigh on the stock's value in the long term. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Pingdingshan Tianan Coal. Mining, with the most bullish analyst valuing it at CN¥15.00 and the most bearish at CN¥13.30 per share. 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 Pingdingshan Tianan Coal. Mining's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Pingdingshan Tianan Coal. Mining's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 3.2% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. Compare this to the 46 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 2.8% per year. Factoring in the forecast slowdown in growth, it looks like Pingdingshan Tianan Coal. Mining is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Pingdingshan Tianan Coal. Mining. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 Pingdingshan Tianan Coal. Mining analysts - going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Pingdingshan Tianan Coal. Mining that you should be aware 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.