Huafon Chemical Co.,Ltd Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Huafon Chemical Co.,Ltd (SZSE:002064) just released its latest annual report and things are not looking great. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at CN¥27b, statutory earnings missed forecasts by 15%, coming in at just CN¥0.45 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the most recent consensus for Huafon ChemicalLtd from four analysts is for revenues of CN¥28.2b in 2025. If met, it would imply a modest 4.8% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 32% to CN¥0.59. Before this earnings report, the analysts had been forecasting revenues of CN¥30.8b and earnings per share (EPS) of CN¥0.69 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a substantial drop in earnings per share numbers.

See our latest analysis for Huafon ChemicalLtd

Despite the cuts to forecast earnings, there was no real change to the CN¥9.45 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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 Huafon ChemicalLtd, with the most bullish analyst valuing it at CN¥9.90 and the most bearish at CN¥9.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Huafon ChemicalLtd's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Huafon ChemicalLtd's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 4.8% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 16% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Huafon ChemicalLtd.

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. The consensus price target held steady at CN¥9.45, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Huafon ChemicalLtd going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Huafon ChemicalLtd 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.