Analysts Are Updating Their Dong-E-E-Jiao Co.,Ltd. (SZSE:000423) Estimates After Its Annual Results

Shareholders might have noticed that Dong-E-E-Jiao Co.,Ltd. (SZSE:000423) filed its annual result this time last week. The early response was not positive, with shares down 3.1% to CN¥59.49 in the past week. The result was positive overall - although revenues of CN¥4.7b were in line with what the analysts predicted, Dong-E-E-JiaoLtd surprised by delivering a statutory profit of CN¥1.79 per share, modestly greater than expected. 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.

See our latest analysis for Dong-E-E-JiaoLtd

Taking into account the latest results, the most recent consensus for Dong-E-E-JiaoLtd from 13 analysts is for revenues of CN¥5.60b in 2024. If met, it would imply a meaningful 19% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 22% to CN¥2.18. Before this earnings report, the analysts had been forecasting revenues of CN¥5.52b and earnings per share (EPS) of CN¥2.00 in 2024. So the consensus seems to have become somewhat more optimistic on Dong-E-E-JiaoLtd's earnings potential following these results.

The consensus price target was unchanged at CN¥65.51, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. The most optimistic Dong-E-E-JiaoLtd analyst has a price target of CN¥78.19 per share, while the most pessimistic values it at CN¥58.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. For example, we noticed that Dong-E-E-JiaoLtd's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 19% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 5.5% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 15% per year. Not only are Dong-E-E-JiaoLtd's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Dong-E-E-JiaoLtd's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at CN¥65.51, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Dong-E-E-JiaoLtd going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Dong-E-E-JiaoLtd you should be aware of.

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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.