Huaihe Energy (Group) Co.,Ltd Just Missed EPS By 19%: Here's What Analysts Think Will Happen Next

Shareholders might have noticed that Huaihe Energy (Group) Co.,Ltd (SHSE:600575) filed its yearly result this time last week. The early response was not positive, with shares down 3.7% to CN¥3.37 in the past week. Results were mixed, with revenues of CN¥30b exceeding expectations, even as earnings per share (EPS) came up short. Statutory earnings were CN¥0.22 per share, -19% below whatthe analyst had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what expert is 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 analyst has changed their earnings models, following these results.

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Taking into account the latest results, the current consensus, from the solitary analyst covering Huaihe Energy (Group)Ltd, is for revenues of CN¥28.2b in 2025. This implies a small 6.0% reduction in Huaihe Energy (Group)Ltd's revenue over the past 12 months. Statutory earnings per share are predicted to increase 4.2% to CN¥0.23. Yet prior to the latest earnings, the analyst had been anticipated revenues of CN¥26.4b and earnings per share (EPS) of CN¥0.28 in 2025. While next year's revenue estimates increased, there was also a real cut to EPS expectations, suggesting the consensus has a bit of a mixed view of these results.

See our latest analysis for Huaihe Energy (Group)Ltd

The consensus price target was unchanged at CN¥4.93, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that revenue is expected to reverse, with a forecast 6.0% annualised decline to the end of 2025. That is a notable change from historical growth of 19% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.4% annually for the foreseeable future. It's pretty clear that Huaihe Energy (Group)Ltd's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Huaihe Energy (Group)Ltd. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2027, 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 Huaihe Energy (Group)Ltd 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.