Here's What Analysts Are Forecasting For Angang Steel Company Limited (HKG:347) After Its Half-Year Results

It's shaping up to be a tough period for Angang Steel Company Limited (HKG:347), which a week ago released some disappointing half-yearly results that could have a notable impact on how the market views the stock. Revenues missed expectations somewhat, coming in at CN¥49b, but statutory earnings fell catastrophically short, with a loss of CN¥0.12 some 36% larger than what the analysts had predicted. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Following last week's earnings report, Angang Steel's seven analysts are forecasting 2025 revenues to be CN¥99.4b, approximately in line with the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 79% to CN¥0.13. Before this earnings announcement, the analysts had been modelling revenues of CN¥100.6b and losses of CN¥0.063 per share in 2025. While this year's revenue estimates held steady, there was also a massive increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

Check out our latest analysis for Angang Steel

The consensus price target held steady at HK$1.91, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. 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. The most optimistic Angang Steel analyst has a price target of HK$2.59 per share, while the most pessimistic values it at HK$1.01. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. For example, we noticed that Angang Steel's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 2.4% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 1.7% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 5.0% per year. So although Angang Steel's revenue growth is expected to improve, it is still expected to grow slower than the industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Angang Steel. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Angang Steel's revenue is expected to perform worse 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 Angang Steel. Long-term earnings power is much more important than next year's profits. We have forecasts for Angang Steel going out to 2027, and you can see them free on our platform here.

It might also be worth considering whether Angang Steel's debt load is appropriate, using our debt analysis tools on the Simply Wall St 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.