Revenue Miss: North Huajin Chemical Industries Co.,Ltd Fell 5.8% Short Of Analyst Revenue Estimates And Analysts Have Been Revising Their Models

It's been a sad week for North Huajin Chemical Industries Co.,Ltd (SZSE:000059), who've watched their investment drop 11% to CN¥4.93 in the week since the company reported its full-year result. Results look mixed - while revenue fell marginally short of analyst estimates at CN¥46b, statutory earnings were in line with expectations, at CN¥0.04 per share. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for North Huajin Chemical IndustriesLtd

Following the latest results, North Huajin Chemical IndustriesLtd's three analysts are now forecasting revenues of CN¥49.1b in 2024. This would be a reasonable 6.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 602% to CN¥0.31. Before this earnings report, the analysts had been forecasting revenues of CN¥55.0b and earnings per share (EPS) of CN¥0.35 in 2024. Indeed, we can see that the analysts are a lot more bearish about North Huajin Chemical IndustriesLtd's prospects following the latest results, administering a real cut to revenue estimates and slashing their EPS estimates to boot.

What's most unexpected is that the consensus price target rose 15% to CN¥7.79, strongly implying the downgrade to forecasts is not expected to be more than a temporary blip. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on North Huajin Chemical IndustriesLtd, with the most bullish analyst valuing it at CN¥9.08 and the most bearish at CN¥6.50 per share. 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 can infer from the latest estimates that forecasts expect a continuation of North Huajin Chemical IndustriesLtd'shistorical trends, as the 6.4% annualised revenue growth to the end of 2024 is roughly in line with the 6.4% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 16% annually. So it's pretty clear that North Huajin Chemical IndustriesLtd is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 North Huajin Chemical IndustriesLtd 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 North Huajin Chemical IndustriesLtd 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.