There's been a notable change in appetite for Sunny Optical Technology (Group) Company Limited (HKG:2382) shares in the week since its annual report, with the stock down 15% to HK$75.25. The result was positive overall - although revenues of CN¥38b were in line with what the analysts predicted, Sunny Optical Technology (Group) surprised by delivering a statutory profit of CN¥2.48 per share, modestly greater than expected. 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 Sunny Optical Technology (Group) after the latest results.
Taking into account the latest results, the most recent consensus for Sunny Optical Technology (Group) from 33 analysts is for revenues of CN¥43.3b in 2025. If met, it would imply a decent 13% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 20% to CN¥2.96. Before this earnings report, the analysts had been forecasting revenues of CN¥43.2b and earnings per share (EPS) of CN¥2.94 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
See our latest analysis for Sunny Optical Technology (Group)
It will come as no surprise then, to learn that the consensus price target is largely unchanged at HK$92.05. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Sunny Optical Technology (Group), with the most bullish analyst valuing it at HK$160 and the most bearish at HK$52.92 per share. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. 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. One thing stands out from these estimates, which is that Sunny Optical Technology (Group) is forecast to grow faster in the future than it has in the past, with revenues expected to display 13% annualised growth until the end of 2025. If achieved, this would be a much better result than the 3.3% 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 13% per year. So it looks like Sunny Optical Technology (Group) is expected to grow at about the same rate as the wider industry.
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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at HK$92.05, with the latest estimates not enough to have an impact on their price targets.
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 Sunny Optical Technology (Group) analysts - going out to 2027, and you can see them free on our platform here.
We also provide an overview of the Sunny Optical Technology (Group) Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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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.