Guangdong Haid Group Co., Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Shareholders might have noticed that Guangdong Haid Group Co., Limited (SZSE:002311) filed its quarterly result this time last week. The early response was not positive, with shares down 3.3% to CN¥42.08 in the past week. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at CN¥29b, statutory earnings beat expectations by a notable 13%, coming in at CN¥0.76 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Guangdong Haid Group

Taking into account the latest results, the current consensus from Guangdong Haid Group's eleven analysts is for revenues of CN¥118.3b in 2024. This would reflect a reasonable 2.2% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 9.1% to CN¥2.48. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥124.8b and earnings per share (EPS) of CN¥2.51 in 2024. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

The consensus has reconfirmed its price target of CN¥59.58, showing that the analysts don't expect weaker revenue expectations next year to have a material impact on Guangdong Haid Group's market value. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Guangdong Haid Group at CN¥67.50 per share, while the most bearish prices it at CN¥52.00. 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Guangdong Haid Group's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 4.5% growth on an annualised basis. This is compared to a historical growth rate of 21% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 11% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Guangdong Haid Group.

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. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. With that said, earnings are more important to the long-term value of the business. The consensus price target held steady at CN¥59.58, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Guangdong Haid Group. Long-term earnings power is much more important than next year's profits. We have forecasts 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.

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