Earnings Update: Guangdong Haid Group Co., Limited (SZSE:002311) Just Reported Its First-Quarter Results And Analysts Are Updating Their Forecasts

It's been a pretty great week for Guangdong Haid Group Co., Limited (SZSE:002311) shareholders, with its shares surging 10% to CN¥49.23 in the week since its latest first-quarter results. Results look mixed - while revenue fell marginally short of analyst estimates at CN¥23b, statutory earnings were in line with expectations, at CN¥1.66 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Guangdong Haid Group after the latest results.

View our latest analysis for Guangdong Haid Group

After the latest results, the 13 analysts covering Guangdong Haid Group are now predicting revenues of CN¥127.3b in 2024. If met, this would reflect a meaningful 9.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 24% to CN¥2.40. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥130.6b and earnings per share (EPS) of CN¥2.42 in 2024. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.

The average price target was steady at CN¥58.95even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings. 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 Guangdong Haid Group, with the most bullish analyst valuing it at CN¥64.00 and the most bearish at CN¥51.00 per share. This is a very narrow spread of estimates, implying either that Guangdong Haid Group is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Guangdong Haid Group's revenue growth is expected to slow, with the forecast 13% annualised growth rate until the end of 2024 being well below the historical 22% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 13% annually. So it's pretty clear that, while Guangdong Haid Group's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. Yet - earnings are more important to the intrinsic value of the business. The consensus price target held steady at CN¥58.95, 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. At Simply Wall St, we have a full range of analyst estimates for Guangdong Haid Group going out to 2026, and you can see them free on our platform here..

Even so, be aware that Guangdong Haid Group is showing 1 warning sign in our investment analysis , 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.