China Resources Building Materials Technology Holdings Limited (HKG:1313) missed earnings with its latest annual results, disappointing overly-optimistic forecasters. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at CN¥23b, statutory earnings missed forecasts by an incredible 64%, coming in at just CN¥0.03 per share. 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.
See our latest analysis for China Resources Building Materials Technology Holdings
Taking into account the latest results, China Resources Building Materials Technology Holdings' 15 analysts currently expect revenues in 2025 to be CN¥23.0b, approximately in line with the last 12 months. Statutory earnings per share are predicted to leap 461% to CN¥0.17. In the lead-up to this report, the analysts had been modelling revenues of CN¥24.5b and earnings per share (EPS) of CN¥0.18 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.
Despite the cuts to forecast earnings, there was no real change to the HK$2.18 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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. The most optimistic China Resources Building Materials Technology Holdings analyst has a price target of HK$2.92 per share, while the most pessimistic values it at HK$1.50. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the China Resources Building Materials Technology Holdings' past performance and to peers in the same industry. We would also point out that the forecast 0.03% annualised revenue decline to the end of 2025 is better than the historical trend, which saw revenues shrink 9.4% annually 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 3.8% per year. So while a broad number of companies are forecast to grow, unfortunately China Resources Building Materials Technology Holdings is expected to see its revenue affected worse than other companies in the 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. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
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 2027, and you can see them free on our platform here.
You still need to take note of risks, for example - China Resources Building Materials Technology Holdings has 1 warning sign we think you should be aware of.
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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.