Hangzhou Oxygen Plant Group Co.,Ltd. Just Missed Earnings - But Analysts Have Updated Their Models

It's shaping up to be a tough period for Hangzhou Oxygen Plant Group Co.,Ltd. (SZSE:002430), which a week ago released some disappointing yearly results that could have a notable impact on how the market views the stock. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at CN¥14b, statutory earnings missed forecasts by 11%, coming in at just CN¥0.93 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Hangzhou Oxygen Plant GroupLtd after the latest results.

After the latest results, the eight analysts covering Hangzhou Oxygen Plant GroupLtd are now predicting revenues of CN¥16.3b in 2025. If met, this would reflect a meaningful 19% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 32% to CN¥1.23. Before this earnings report, the analysts had been forecasting revenues of CN¥17.1b and earnings per share (EPS) of CN¥1.29 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

Check out our latest analysis for Hangzhou Oxygen Plant GroupLtd

The analysts made no major changes to their price target of CN¥29.68, suggesting the downgrades are not expected to have a long-term impact on Hangzhou Oxygen Plant GroupLtd's valuation. 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 Hangzhou Oxygen Plant GroupLtd at CN¥32.60 per share, while the most bearish prices it at CN¥26.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Hangzhou Oxygen Plant GroupLtd's past performance and to peers in the same industry. The analysts are definitely expecting Hangzhou Oxygen Plant GroupLtd's growth to accelerate, with the forecast 19% annualised growth to the end of 2025 ranking favourably alongside historical growth of 9.7% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 16% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Hangzhou Oxygen Plant GroupLtd is expected to grow at about the same rate as the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Hangzhou Oxygen Plant GroupLtd. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Hangzhou Oxygen Plant GroupLtd. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Hangzhou Oxygen Plant GroupLtd going out to 2027, and you can see them free on our platform here..

It might also be worth considering whether Hangzhou Oxygen Plant GroupLtd's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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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.