Earnings Miss: Here's What China Zhenhua (Group) Science & Technology Co., Ltd (SZSE:000733) Analysts Are Forecasting For Next Year

As you might know, China Zhenhua (Group) Science & Technology Co., Ltd (SZSE:000733) last week released its latest third-quarter, and things did not turn out so great for shareholders. China Zhenhua (Group) Science & Technology delivered a grave earnings miss, with both revenues (CN¥1.3b) and statutory earnings per share (CN¥0.40) falling badly short of analyst 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for China Zhenhua (Group) Science & Technology

After the latest results, the six analysts covering China Zhenhua (Group) Science & Technology are now predicting revenues of CN¥7.20b in 2025. If met, this would reflect a huge 31% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 72% to CN¥3.94. In the lead-up to this report, the analysts had been modelling revenues of CN¥7.01b and earnings per share (EPS) of CN¥4.01 in 2025. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a small lift in to revenue forecasts.

The consensus price target increased 31% to CN¥72.84, with an improved revenue forecast carrying the promise of a more valuable business, in time. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic China Zhenhua (Group) Science & Technology analyst has a price target of CN¥79.68 per share, while the most pessimistic values it at CN¥66.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that China Zhenhua (Group) Science & Technology's rate of growth is expected to accelerate meaningfully, with the forecast 24% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 15% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 18% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that China Zhenhua (Group) Science & Technology is expected to grow much faster than its 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. Happily, they also upgraded their revenue estimates, and are forecasting them 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.

With that in mind, we wouldn't be too quick to come to a conclusion on China Zhenhua (Group) Science & Technology. Long-term earnings power is much more important than next year's profits. We have forecasts for China Zhenhua (Group) Science & Technology going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for China Zhenhua (Group) Science & Technology that we have uncovered.

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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.