Zhen Ding Technology Holding Limited (TWSE:4958) Released Earnings Last Week And Analysts Lifted Their Price Target To NT$118

It's been a good week for Zhen Ding Technology Holding Limited (TWSE:4958) shareholders, because the company has just released its latest yearly results, and the shares gained 5.5% to NT$106. Zhen Ding Technology Holding reported in line with analyst predictions, delivering revenues of NT$151b and statutory earnings per share of NT$6.55, suggesting the business is executing well and in line with its plan. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Zhen Ding Technology Holding after the latest results.

See our latest analysis for Zhen Ding Technology Holding

After the latest results, the ten analysts covering Zhen Ding Technology Holding are now predicting revenues of NT$165.3b in 2024. If met, this would reflect a meaningful 9.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 56% to NT$10.19. Before this earnings report, the analysts had been forecasting revenues of NT$167.7b and earnings per share (EPS) of NT$10.10 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The consensus price target rose 5.3% to NT$118despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Zhen Ding Technology Holding's earnings by assigning a price premium. 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. Currently, the most bullish analyst values Zhen Ding Technology Holding at NT$130 per share, while the most bearish prices it at NT$105. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 9.2% growth on an annualised basis. That is in line with its 8.5% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 11% per year. It's clear that while Zhen Ding Technology Holding's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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. We have forecasts for Zhen Ding Technology Holding going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Zhen Ding Technology Holding you should be aware of.

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.