Earnings Beat: Chongqing Brewery Co., Ltd. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Chongqing Brewery Co., Ltd. (SHSE:600132) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat forecasts, with revenue of CN¥4.3b, some 2.1% above estimates, and statutory earnings per share (EPS) coming in at CN¥0.93, 37% ahead of expectations. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Chongqing Brewery

Following the latest results, Chongqing Brewery's 27 analysts are now forecasting revenues of CN¥15.7b in 2024. This would be an okay 4.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 4.2% to CN¥3.02. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥15.6b and earnings per share (EPS) of CN¥3.02 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.

There were no changes to revenue or earnings estimates or the price target of CN¥74.48, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Chongqing Brewery, with the most bullish analyst valuing it at CN¥116 and the most bearish at CN¥51.98 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Chongqing Brewery's revenue growth is expected to slow, with the forecast 5.5% annualised growth rate until the end of 2024 being well below the historical 15% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% per year. Factoring in the forecast slowdown in growth, it seems obvious that Chongqing Brewery is also expected to grow slower than other industry participants.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Chongqing Brewery's revenue is expected to perform worse than the wider 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Chongqing Brewery 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 Chongqing Brewery 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.