Yangzijiang Shipbuilding (Holdings) Ltd. Just Recorded A 8.4% EPS Beat: Here's What Analysts Are Forecasting Next
Investors in Yangzijiang Shipbuilding (Holdings) Ltd. (SGX:BS6) had a good week, as its shares rose 3.6% to close at S$1.75 following the release of its annual results. Yangzijiang Shipbuilding (Holdings) reported CN¥24b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of CN¥1.04 beat expectations, being 8.4% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for Yangzijiang Shipbuilding (Holdings)
Taking into account the latest results, the current consensus from Yangzijiang Shipbuilding (Holdings)'s seven analysts is for revenues of CN¥27.0b in 2024. This would reflect a notable 12% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 6.9% to CN¥1.11. Before this earnings report, the analysts had been forecasting revenues of CN¥26.5b and earnings per share (EPS) of CN¥1.05 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 5.2% to S$1.98. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Yangzijiang Shipbuilding (Holdings) at S$2.10 per share, while the most bearish prices it at S$1.84. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
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. One thing stands out from these estimates, which is that Yangzijiang Shipbuilding (Holdings) is forecast to grow faster in the future than it has in the past, with revenues expected to display 12% annualised growth until the end of 2024. If achieved, this would be a much better result than the 1.1% annual decline 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 11% per year. So while Yangzijiang Shipbuilding (Holdings)'s revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Yangzijiang Shipbuilding (Holdings)'s earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Yangzijiang Shipbuilding (Holdings) going out to 2026, and you can see them free on our platform here.
Even so, be aware that Yangzijiang Shipbuilding (Holdings) is showing 1 warning sign 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.
