Huaqin Technology Co., Ltd. Just Missed EPS By 14%: Here's What Analysts Think Will Happen Next

Last week, you might have seen that Huaqin Technology Co., Ltd. (SHSE:603296) released its quarterly result to the market. The early response was not positive, with shares down 6.2% to CN¥54.91 in the past week. Results were mixed, with revenues of CN¥37b exceeding expectations, even as earnings per share (EPS) came up short. Statutory earnings were CN¥0.75 per share, -14% below whatthe analysts had forecast. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Huaqin Technology

Taking into account the latest results, the current consensus from Huaqin Technology's six analysts is for revenues of CN¥116.2b in 2025. This would reflect a huge 20% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 27% to CN¥3.48. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥114.9b and earnings per share (EPS) of CN¥3.49 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 9.6% to CN¥68.05. It looks as though they previously had some doubts over whether the business would live up to their expectations. 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 Huaqin Technology analyst has a price target of CN¥80.00 per share, while the most pessimistic values it at CN¥61.28. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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 Huaqin Technology's growth to accelerate, with the forecast 16% annualised growth to the end of 2025 ranking favourably alongside historical growth of 12% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 14% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Huaqin Technology is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Huaqin Technology going out to 2026, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with Huaqin Technology .

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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.