Beijing Dabeinong Technology Group Co.,Ltd. (SZSE:002385) Interim Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Shareholders might have noticed that Beijing Dabeinong Technology Group Co.,Ltd. (SZSE:002385) filed its interim result this time last week. The early response was not positive, with shares down 4.0% to CN¥3.85 in the past week. Revenues of CN¥13b missed forecasts by 12%, but at least statutory losses were much smaller than expected, with per-share losses of CN¥0.04 coming in 33% smaller than what the analysts had forecast. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Beijing Dabeinong Technology GroupLtd

Taking into account the latest results, the most recent consensus for Beijing Dabeinong Technology GroupLtd from seven analysts is for revenues of CN¥35.3b in 2024. If met, it would imply a meaningful 15% increase on its revenue over the past 12 months. Beijing Dabeinong Technology GroupLtd is also expected to turn profitable, with statutory earnings of CN¥0.06 per share. In the lead-up to this report, the analysts had been modelling revenues of CN¥36.4b and earnings per share (EPS) of CN¥0.054 in 2024. While revenue forecasts have been revised downwards, the analysts look to have become more optimistic on the company's cost base, given the nice gain to to the earnings per share numbers.

There's been no real change to the average price target of CN¥6.87, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Beijing Dabeinong Technology GroupLtd, with the most bullish analyst valuing it at CN¥10.00 and the most bearish at CN¥4.97 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Beijing Dabeinong Technology GroupLtd's rate of growth is expected to accelerate meaningfully, with the forecast 31% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 14% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Beijing Dabeinong Technology GroupLtd is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Beijing Dabeinong Technology GroupLtd following these results. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Still, earnings are more important to the intrinsic value of the business. 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 in mind, we wouldn't be too quick to come to a conclusion on Beijing Dabeinong Technology GroupLtd. Long-term earnings power is much more important than next year's profits. We have forecasts for Beijing Dabeinong Technology GroupLtd going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Beijing Dabeinong Technology GroupLtd has 2 warning signs (and 1 which doesn't sit too well with us) we think 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.