China Yangtze Power Co., Ltd. (SHSE:600900) Yearly Results Just Came Out: Here's What Analysts Are Forecasting For This Year

The analysts might have been a bit too bullish on China Yangtze Power Co., Ltd. (SHSE:600900), given that the company fell short of expectations when it released its full-year results last week. Results look to have been somewhat negative - revenue fell 2.8% short of analyst estimates at CN¥84b, and statutory earnings of CN¥1.33 per share missed forecasts by 3.6%. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for China Yangtze Power

After the latest results, the 19 analysts covering China Yangtze Power are now predicting revenues of CN¥85.9b in 2025. If met, this would reflect a credible 2.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 7.6% to CN¥1.43. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥88.9b and earnings per share (EPS) of CN¥1.46 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the CN¥32.54 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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. There are some variant perceptions on China Yangtze Power, with the most bullish analyst valuing it at CN¥35.00 and the most bearish at CN¥28.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that China Yangtze Power's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.0% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.9% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than China Yangtze Power.

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. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target held steady at CN¥32.54, with the latest estimates not enough to have an impact on their price targets.

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 China Yangtze Power analysts - going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for China Yangtze Power 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.