Analysts Are Updating Their Zhejiang Huayou Cobalt Co., Ltd (SHSE:603799) Estimates After Its Third-Quarter Results

Investors in Zhejiang Huayou Cobalt Co., Ltd (SHSE:603799) had a good week, as its shares rose 7.8% to close at CN¥30.76 following the release of its quarterly results. Revenues came in 2.2% below expectations, at CN¥30b. Statutory earnings per share were relatively better off, with a per-share profit of CN¥0.80 being roughly in line with analyst estimates. 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 Zhejiang Huayou Cobalt

Taking into account the latest results, the consensus forecast from Zhejiang Huayou Cobalt's eleven analysts is for revenues of CN¥78.4b in 2025. This reflects a substantial 29% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 12% to CN¥2.25. Before this earnings report, the analysts had been forecasting revenues of CN¥78.4b and earnings per share (EPS) of CN¥2.22 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of CN¥29.75, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Zhejiang Huayou Cobalt analyst has a price target of CN¥38.30 per share, while the most pessimistic values it at CN¥21.40. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Zhejiang Huayou Cobalt's revenue growth is expected to slow, with the forecast 23% annualised growth rate until the end of 2025 being well below the historical 29% 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 9.7% annually. So it's pretty clear that, while Zhejiang Huayou Cobalt's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at CN¥29.75, with the latest estimates not enough to have an impact on their price targets.

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 estimates - from multiple Zhejiang Huayou Cobalt analysts - going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Zhejiang Huayou Cobalt has 2 warning signs (and 1 which can't be ignored) 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.