Guangdong Provincial Expressway Development Co., Ltd. (SZSE:000429) Just Reported And Analysts Have Been Lifting Their Price Targets

Last week saw the newest yearly earnings release from Guangdong Provincial Expressway Development Co., Ltd. (SZSE:000429), an important milestone in the company's journey to build a stronger business. The result was fairly weak overall, with revenues of CN¥4.9b being 2.7% less than what the analysts had been modelling. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Guangdong Provincial Expressway Development

Taking into account the latest results, Guangdong Provincial Expressway Development's four analysts currently expect revenues in 2024 to be CN¥4.95b, approximately in line with the last 12 months. Per-share earnings are expected to rise 2.4% to CN¥0.80. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥4.93b and earnings per share (EPS) of CN¥0.85 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

Despite cutting their earnings forecasts,the analysts have lifted their price target 12% to CN¥11.04, suggesting that these impacts are not expected to weigh on the stock's value in the long term.

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 Guangdong Provincial Expressway Development's revenue growth is expected to slow, with the forecast 1.4% annualised growth rate until the end of 2024 being well below the historical 5.3% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 10% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Guangdong Provincial Expressway Development.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Guangdong Provincial Expressway Development. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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 Guangdong Provincial Expressway Development. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Guangdong Provincial Expressway Development analysts - going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Guangdong Provincial Expressway Development that you need to take into consideration.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.