Here's What Analysts Are Forecasting For Suzhou Dongshan Precision Manufacturing Co., Ltd. (SZSE:002384) After Its Full-Year Results

Investors in Suzhou Dongshan Precision Manufacturing Co., Ltd. (SZSE:002384) had a good week, as its shares rose 3.3% to close at CN¥14.20 following the release of its annual results. It was a pretty mixed result, with revenues beating expectations to hit CN¥34b. Statutory earnings fell 4.2% short of analyst forecasts, reaching CN¥1.15 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Suzhou Dongshan Precision Manufacturing

After the latest results, the eight analysts covering Suzhou Dongshan Precision Manufacturing are now predicting revenues of CN¥36.9b in 2024. If met, this would reflect a meaningful 9.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 27% to CN¥1.46. Before this earnings report, the analysts had been forecasting revenues of CN¥38.7b and earnings per share (EPS) of CN¥1.58 in 2024. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

The analysts made no major changes to their price target of CN¥23.31, suggesting the downgrades are not expected to have a long-term impact on Suzhou Dongshan Precision Manufacturing's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Suzhou Dongshan Precision Manufacturing at CN¥32.50 per share, while the most bearish prices it at CN¥15.70. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Suzhou Dongshan Precision Manufacturing'shistorical trends, as the 9.5% annualised revenue growth to the end of 2024 is roughly in line with the 9.3% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 18% annually. So it's pretty clear that Suzhou Dongshan Precision Manufacturing is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. 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.

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 Suzhou Dongshan Precision Manufacturing going out to 2026, and you can see them free on our platform here..

You still need to take note of risks, for example - Suzhou Dongshan Precision Manufacturing has 1 warning sign we think 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.