Analysts Have Made A Financial Statement On Guangzhou Guanggang Gases & Energy Co.,Ltd.'s (SHSE:688548) Yearly Report

Investors in Guangzhou Guanggang Gases & Energy Co.,Ltd. (SHSE:688548) had a good week, as its shares rose 5.6% to close at CN¥10.73 following the release of its full-year results. Guangzhou Guanggang Gases & EnergyLtd reported in line with analyst predictions, delivering revenues of CN¥2.1b and statutory earnings per share of CN¥0.18, suggesting the business is executing well and in line with its plan. 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.

View our latest analysis for Guangzhou Guanggang Gases & EnergyLtd

After the latest results, the five analysts covering Guangzhou Guanggang Gases & EnergyLtd are now predicting revenues of CN¥2.74b in 2025. If met, this would reflect a major 31% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 65% to CN¥0.30. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥2.79b and earnings per share (EPS) of CN¥0.32 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

The consensus price target held steady at CN¥12.00, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. Currently, the most bullish analyst values Guangzhou Guanggang Gases & EnergyLtd at CN¥13.30 per share, while the most bearish prices it at CN¥10.00. This is a very narrow spread of estimates, implying either that Guangzhou Guanggang Gases & EnergyLtd is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Guangzhou Guanggang Gases & EnergyLtd's growth to accelerate, with the forecast 31% annualised growth to the end of 2025 ranking favourably alongside historical growth of 22% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 16% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Guangzhou Guanggang Gases & EnergyLtd is expected to grow much 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 Guangzhou Guanggang Gases & EnergyLtd. Happily, there were no major changes to revenue forecasts, with the business still expected to 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. At Simply Wall St, we have a full range of analyst estimates for Guangzhou Guanggang Gases & EnergyLtd going out to 2026, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 2 warning signs for Guangzhou Guanggang Gases & EnergyLtd 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.