Investors in China Resources Building Materials Technology Holdings Limited (HKG:1313) had a good week, as its shares rose 2.5% to close at HK$2.02 following the release of its third-quarter results. Revenues were CN¥10b, 12% below analyst expectations, although losses didn't appear to worsen significantly, with a statutory per-share loss of CN¥0.091 being in line with what the analysts anticipated. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
View our latest analysis for China Resources Building Materials Technology Holdings
Following the latest results, China Resources Building Materials Technology Holdings' 16 analysts are now forecasting revenues of CN¥25.1b in 2025. This would be a decent 8.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 309% to CN¥0.18. Before this earnings report, the analysts had been forecasting revenues of CN¥25.3b and earnings per share (EPS) of CN¥0.19 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.
Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 9.2% to HK$2.15, suggesting the revised estimates are not indicative of a weaker long-term future for the business. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values China Resources Building Materials Technology Holdings at HK$3.53 per share, while the most bearish prices it at HK$1.10. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. 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.
Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that China Resources Building Materials Technology Holdings' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 6.6% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 8.5% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 2.9% per year. So it looks like China Resources Building Materials Technology Holdings is expected to grow faster than its competitors, at least for a while.
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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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. We have estimates - from multiple China Resources Building Materials Technology Holdings analysts - going out to 2026, and you can see them free on our platform here.
Before you take the next step you should know about the 2 warning signs for China Resources Building Materials Technology Holdings that we have uncovered.
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.