SDIC Power Holdings Co., Ltd Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year

Last week saw the newest third-quarter earnings release from SDIC Power Holdings Co., Ltd (SHSE:600886), an important milestone in the company's journey to build a stronger business. Revenues CN¥17b disappointed slightly, at7.9% below what the analysts had predicted. Profits were a relative bright spot, with statutory per-share earnings of CN¥0.37 coming in 19% above what was anticipated. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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 SDIC Power Holdings

Taking into account the latest results, the consensus forecast from SDIC Power Holdings' eleven analysts is for revenues of CN¥64.0b in 2025. This reflects a solid 9.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to step up 16% to CN¥1.12. Before this earnings report, the analysts had been forecasting revenues of CN¥64.2b and earnings per share (EPS) of CN¥1.15 in 2025. 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 minor downgrade to their earnings per share forecasts.

The consensus price target held steady at CN¥17.37, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 SDIC Power Holdings analyst has a price target of CN¥22.10 per share, while the most pessimistic values it at CN¥9.64. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the SDIC Power Holdings' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of SDIC Power Holdings'historical trends, as the 7.3% annualised revenue growth to the end of 2025 is roughly in line with the 8.8% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 6.1% per year. So although SDIC Power Holdings is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider 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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.

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. We have estimates - from multiple SDIC Power Holdings analysts - 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 2 warning signs for SDIC Power Holdings (1 is potentially serious!) 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.