China Yangtze Power Co., Ltd. Just Beat EPS By 6.4%: Here's What Analysts Think Will Happen Next

As you might know, China Yangtze Power Co., Ltd. (SHSE:600900) just kicked off its latest half-year results with some very strong numbers. The company beat expectations with revenues of CN¥19b arriving 3.9% ahead of forecasts. Statutory earnings per share (EPS) were CN¥0.30, 6.4% ahead of estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on China Yangtze Power after the latest results.

Check out our latest analysis for China Yangtze Power

Taking into account the latest results, the most recent consensus for China Yangtze Power from 19 analysts is for revenues of CN¥87.1b in 2024. If met, it would imply a satisfactory 6.3% increase on its revenue over the past 12 months. Per-share earnings are expected to climb 13% to CN¥1.38. Before this earnings report, the analysts had been forecasting revenues of CN¥87.5b and earnings per share (EPS) of CN¥1.40 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of CN¥31.21, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic China Yangtze Power analyst has a price target of CN¥35.08 per share, while the most pessimistic values it at CN¥26.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting China Yangtze Power is an easy business to forecast or the the analysts are all using similar assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting China Yangtze Power's growth to accelerate, with the forecast 13% annualised growth to the end of 2024 ranking favourably alongside historical growth of 10% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.3% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect China Yangtze Power to grow faster than the wider 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, there were no major changes to revenue forecasts, with the business still expected to grow faster 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 China Yangtze Power. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for China Yangtze Power 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 Yangtze Power 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.