Earnings Update: Qingdao Port International Co., Ltd. (HKG:6198) Just Reported Its First-Quarter Results And Analysts Are Updating Their Forecasts

It's been a good week for Qingdao Port International Co., Ltd. (HKG:6198) shareholders, because the company has just released its latest first-quarter results, and the shares gained 5.6% to HK$3.96. Revenues came in 3.6% below expectations, at CN¥4.6b. Statutory earnings per share were relatively better off, with a per-share profit of CN¥0.70 being roughly in line with analyst estimates. The analyst 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. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

View our latest analysis for Qingdao Port International

Following last week's earnings report, Qingdao Port International's single analyst are forecasting 2023 revenues to be CN¥18.2b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be CN¥0.75, roughly flat on the last 12 months. In the lead-up to this report, the analyst had been modelling revenues of CN¥18.1b and earnings per share (EPS) of CN¥0.73 in 2023. The analyst seem to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of HK$6.90, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Qingdao Port International's past performance and to peers in the same industry. We would highlight that Qingdao Port International's revenue growth is expected to slow, with the forecast 0.3% annualised growth rate until the end of 2023 being well below the historical 12% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.3% per year. Factoring in the forecast slowdown in growth, it seems obvious that Qingdao Port International is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Qingdao Port International following these results. Fortunately, the analyst also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Qingdao Port International's revenue is expected to perform worse than the wider industry. The consensus price target held steady at HK$6.90, 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 Qingdao Port International going out as far as 2025, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Qingdao Port International you should know about.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.