Chipsea Technologies (shenzhen) Corp. (SHSE:688595) Just Reported And Analysts Have Been Lifting Their Price Targets

As you might know, Chipsea Technologies (shenzhen) Corp. (SHSE:688595) recently reported its annual numbers. Revenues came in at CN¥433m, in line with forecasts and the company reported a statutory loss of CN¥1.01 per share, roughly 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Chipsea Technologies (shenzhen)

Taking into account the latest results, the most recent consensus for Chipsea Technologies (shenzhen) from twin analysts is for revenues of CN¥742.3m in 2024. If met, it would imply a sizeable 71% increase on its revenue over the past 12 months. Per-share statutory losses are expected to explode, reaching CN¥0.045 per share. Before this earnings report, the analysts had been forecasting revenues of CN¥776.9m and earnings per share (EPS) of CN¥0.37 in 2024. There looks to have been a significant drop in sentiment regarding Chipsea Technologies (shenzhen)'s prospects after these latest results, with a minor downgrade to revenues and the analysts now forecasting a loss instead of a profit.

The analysts lifted their price target 7.1% to CN¥37.75, implicitly signalling that lower earnings per share are not expected to have a longer-term impact on the stock's value.

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. The analysts are definitely expecting Chipsea Technologies (shenzhen)'s growth to accelerate, with the forecast 71% annualised growth to the end of 2024 ranking favourably alongside historical growth of 15% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 23% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Chipsea Technologies (shenzhen) is expected to grow much faster than its industry.

The Bottom Line

The biggest low-light for us was that the forecasts for Chipsea Technologies (shenzhen) dropped from profits to a loss next year. They also downgraded Chipsea Technologies (shenzhen)'s revenue estimates, but industry data suggests that it is expected to grow faster 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Chipsea Technologies (shenzhen) that you need to be mindful 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.