Great Wall Motor Company Limited Just Beat Revenue Estimates By 17%

Investors in Great Wall Motor Company Limited (HKG:2333) had a good week, as its shares rose 3.1% to close at HK$19.25 following the release of its quarterly results. Great Wall Motor beat revenue forecasts by a solid 17% to hit CN¥52b. Statutory earnings per share came in at CN¥1.49, in line with expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the consensus forecast from Great Wall Motor's 29 analysts is for revenues of CN¥232.5b in 2025. This reflects a notable 14% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 9.3% to CN¥1.53. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥224.5b and earnings per share (EPS) of CN¥1.43 in 2025. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

View our latest analysis for Great Wall Motor

With these upgrades, we're not surprised to see that the analysts have lifted their price target 22% to HK$19.27per share. 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 Great Wall Motor, with the most bullish analyst valuing it at HK$26.78 and the most bearish at HK$9.99 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. It's clear from the latest estimates that Great Wall Motor's rate of growth is expected to accelerate meaningfully, with the forecast 31% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 15% p.a. 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 biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Great Wall Motor's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Great Wall Motor going out to 2027, and you can see them free 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.