Jinhong Gas Co.,Ltd. Just Missed EPS By 13%: Here's What Analysts Think Will Happen Next

Shareholders might have noticed that Jinhong Gas Co.,Ltd. (SHSE:688106) filed its full-year result this time last week. The early response was not positive, with shares down 5.0% to CN¥19.06 in the past week. It was not a great result overall. While revenues of CN¥2.4b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 13% to hit CN¥0.63 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Jinhong GasLtd

Taking into account the latest results, the consensus forecast from Jinhong GasLtd's seven analysts is for revenues of CN¥2.97b in 2024. This reflects a major 22% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 26% to CN¥0.83. In the lead-up to this report, the analysts had been modelling revenues of CN¥2.97b and earnings per share (EPS) of CN¥0.83 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

With no major changes to earnings forecasts, the consensus price target fell 7.0% to CN¥28.97, suggesting that the analysts might have previously been hoping for an earnings upgrade. 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 Jinhong GasLtd, with the most bullish analyst valuing it at CN¥35.00 and the most bearish at CN¥24.32 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. The analysts are definitely expecting Jinhong GasLtd's growth to accelerate, with the forecast 22% annualised growth to the end of 2024 ranking favourably alongside historical growth of 18% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 17% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Jinhong GasLtd to grow faster than the wider 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. 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 fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Jinhong GasLtd's future valuation.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Jinhong GasLtd going out to 2026, and you can see them free on our platform here..

It is also worth noting that we have found 2 warning signs for Jinhong GasLtd (1 makes us a bit uncomfortable!) that you need to take into consideration.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.