Earnings Miss: China Yongda Automobiles Services Holdings Limited Missed EPS By 7.8% And Analysts Are Revising Their Forecasts

As you might know, China Yongda Automobiles Services Holdings Limited (HKG:3669) last week released its latest annual, and things did not turn out so great for shareholders. China Yongda Automobiles Services Holdings missed analyst forecasts, with revenues of CN¥63b and statutory earnings per share (EPS) of CN¥0.11, falling short by 3.5% and 7.8% respectively. 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.

Taking into account the latest results, the current consensus, from the ten analysts covering China Yongda Automobiles Services Holdings, is for revenues of CN¥61.4b in 2025. This implies a noticeable 3.2% reduction in China Yongda Automobiles Services Holdings' revenue over the past 12 months. Statutory earnings per share are predicted to jump 50% to CN¥0.16. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥67.1b and earnings per share (EPS) of CN¥0.19 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.

View our latest analysis for China Yongda Automobiles Services Holdings

What's most unexpected is that the consensus price target rose 13% to HK$2.68, strongly implying the downgrade to forecasts is not expected to be more than a temporary blip. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on China Yongda Automobiles Services Holdings, with the most bullish analyst valuing it at HK$6.60 and the most bearish at HK$1.17 per share. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 3.2% by the end of 2025. This indicates a significant reduction from annual growth of 0.8% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 17% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - China Yongda Automobiles Services Holdings is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse 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 China Yongda Automobiles Services Holdings going out to 2027, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with China Yongda Automobiles Services Holdings , and understanding these should be part of your investment process.

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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.