Great Wall Motor Company Limited (HKG:2333) Just Reported Yearly Earnings: Have Analysts Changed Their Mind On The Stock?

Shareholders might have noticed that Great Wall Motor Company Limited (HKG:2333) filed its full-year result this time last week. The early response was not positive, with shares down 3.0% to HK$8.70 in the past week. It was an okay result overall, with revenues coming in at CN¥173b, roughly what the analysts had been expecting. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Great Wall Motor

Taking into account the latest results, the most recent consensus for Great Wall Motor from 34 analysts is for revenues of CN¥211.1b in 2024. If met, it would imply a major 22% increase on its revenue over the past 12 months. Per-share earnings are expected to ascend 18% to CN¥0.98. Before this earnings report, the analysts had been forecasting revenues of CN¥210.6b and earnings per share (EPS) of CN¥0.97 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at HK$12.29. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Great Wall Motor at HK$14.93 per share, while the most bearish prices it at HK$8.38. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Great Wall Motor's growth to accelerate, with the forecast 22% annualised growth to the end of 2024 ranking favourably alongside historical growth of 13% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Great Wall Motor 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Great Wall Motor analysts - going out to 2026, and you can see them free on our platform here.

Even so, be aware that Great Wall Motor is showing 3 warning signs in our investment analysis , you should know about...

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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.