Asia Cement (China) Holdings Corporation Just Missed EPS By 5.5%: Here's What Analysts Think Will Happen Next

The annual results for Asia Cement (China) Holdings Corporation (HKG:743) were released last week, making it a good time to revisit its performance. It was a pretty mixed result, with revenues beating expectations to hit CN¥12b. Statutory earnings fell 5.5% short of analyst forecasts, reaching CN¥1.13 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is 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 analyst has changed their earnings models, following these results.

See our latest analysis for Asia Cement (China) Holdings

After the latest results, the solitary analyst covering Asia Cement (China) Holdings are now predicting revenues of CN¥12.0b in 2022. If met, this would reflect a modest 2.1% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to expand 15% to CN¥1.30. In the lead-up to this report, the analyst had been modelling revenues of CN¥11.4b and earnings per share (EPS) of CN¥1.32 in 2022. So it looks like there's been no major change in sentiment following the latest results, although the analyst has made a slight bump in to revenue forecasts.

Even though revenue forecasts increased, there was no change to the consensus price target of HK$6.00, suggesting the analyst is focused on earnings as the driver of value creation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Asia Cement (China) Holdings' revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 2.1% 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 1.5% annually. Even after the forecast slowdown in growth, it seems obvious that Asia Cement (China) Holdings is also expected 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 analyst reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. The consensus price target held steady at HK$6.00, with the latest estimates not enough to have an impact on their price target.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Asia Cement (China) Holdings going out as far as 2024, and you can see them free on our platform here.

Even so, be aware that Asia Cement (China) Holdings is showing 2 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.