Lier Chemical Co.,LTD. Just Beat Revenue By 12%: Here's What Analysts Think Will Happen Next

Lier Chemical Co.,LTD. (SZSE:002258) came out with its yearly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Lier ChemicalLTD beat revenue forecasts by a solid 12% to hit CN¥7.3b. Statutory earnings per share came in at CN¥0.27, in line with expectations. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

After the latest results, the consensus from Lier ChemicalLTD's three analysts is for revenues of CN¥7.10b in 2025, which would reflect a small 3.0% decline in revenue compared to the last year of performance. Statutory earnings per share are predicted to jump 140% to CN¥0.65. Before this earnings report, the analysts had been forecasting revenues of CN¥8.12b and earnings per share (EPS) of CN¥0.68 in 2025. It looks like sentiment has fallen somewhat in the aftermath of these results, with a substantial drop in revenue estimates and a minor downgrade to earnings per share numbers as well.

View our latest analysis for Lier ChemicalLTD

It'll come as no surprise then, to learn that the analysts have cut their price target 8.7% to CN¥10.50. 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 Lier ChemicalLTD at CN¥11.00 per share, while the most bearish prices it at CN¥10.00. This is a very narrow spread of estimates, implying either that Lier ChemicalLTD is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 3.0% by the end of 2025. This indicates a significant reduction from annual growth of 12% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 16% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Lier ChemicalLTD is expected to lag the wider 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. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 Lier ChemicalLTD going out to 2026, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Lier ChemicalLTD , and understanding this should be part of your investment process.

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.