Wanhua Chemical Group Co., Ltd. (SHSE:600309) Just Released Its Annual Results And Analysts Are Updating Their Estimates

As you might know, Wanhua Chemical Group Co., Ltd. (SHSE:600309) recently reported its yearly numbers. Revenues were CN¥182b, with Wanhua Chemical Group reporting some 7.1% below analyst expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Taking into account the latest results, the consensus forecast from Wanhua Chemical Group's 17 analysts is for revenues of CN¥220.6b in 2025. This reflects a sizeable 21% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 29% to CN¥5.34. Before this earnings report, the analysts had been forecasting revenues of CN¥226.5b and earnings per share (EPS) of CN¥5.81 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

Check out our latest analysis for Wanhua Chemical Group

The analysts made no major changes to their price target of CN¥92.42, suggesting the downgrades are not expected to have a long-term impact on Wanhua Chemical Group's valuation. 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 Wanhua Chemical Group, with the most bullish analyst valuing it at CN¥107 and the most bearish at CN¥64.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Wanhua Chemical Group'shistorical trends, as the 21% annualised revenue growth to the end of 2025 is roughly in line with the 20% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 16% per year. So it's pretty clear that Wanhua Chemical Group is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Wanhua Chemical Group. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster 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.

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 forecasts for Wanhua Chemical Group going out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for Wanhua Chemical Group that you need to be mindful 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.