Stock Analysis

Great Wall Motor Company Limited (HKG:2333) Third-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For Next Year

SEHK:2333
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It's been a good week for Great Wall Motor Company Limited (HKG:2333) shareholders, because the company has just released its latest third-quarter results, and the shares gained 2.3% to HK$13.54. Great Wall Motor reported in line with analyst predictions, delivering revenues of CN¥51b and statutory earnings per share of CN¥0.82, suggesting the business is executing well and in line with its plan. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Great Wall Motor

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SEHK:2333 Earnings and Revenue Growth October 28th 2024

Taking into account the latest results, the current consensus from Great Wall Motor's 36 analysts is for revenues of CN¥244.3b in 2025. This would reflect a substantial 25% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 4.4% to CN¥1.53. Before this earnings report, the analysts had been forecasting revenues of CN¥245.0b and earnings per share (EPS) of CN¥1.52 in 2025. 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.

The analysts reconfirmed their price target of HK$16.33, showing that the business is executing well and in line with expectations. 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 Great Wall Motor analyst has a price target of HK$22.98 per share, while the most pessimistic values it at HK$8.87. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Great Wall Motor's rate of growth is expected to accelerate meaningfully, with the forecast 19% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 15% p.a. 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 13% per year. 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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 Great Wall Motor. 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 Great Wall Motor going out to 2026, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.