Analyst Estimates: Here’s What Brokers Think Of China United Network Communications Limited (SHSE:600050) After Its Yearly Report

Investors in China United Network Communications Limited (SHSE:600050) had a good week, as its shares rose 2.2% to close at CN¥4.72 following the release of its full-year results. Results look mixed – while revenue fell marginally short of analyst estimates at CN¥373b, statutory earnings were in line with expectations, at CN¥0.26 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. With this in mind, we’ve gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for China United Network Communications

SHSE:600050 Earnings and Revenue Growth March 21st 2024

Taking into account the latest results, the most recent consensus for China United Network Communications from 14 analysts is for revenues of CN¥393.4b in 2024. If met, it would imply a reasonable 5.6% increase on its revenue over the past 12 months. Per-share earnings are expected to climb 17% to CN¥0.29. Before this earnings report, the analysts had been forecasting revenues of CN¥391.9b and earnings per share (EPS) of CN¥0.30 in 2024. 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.

There were no changes to revenue or earnings estimates or the price target of CN¥5.08, suggesting that the company has met expectations in its recent result. 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 China United Network Communications, with the most bullish analyst valuing it at CN¥7.98 and the most bearish at CN¥2.77 per share. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. 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.

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. We can infer from the latest estimates that forecasts expect a continuation of China United Network Communications’historical trends, as the 5.6% annualised revenue growth to the end of 2024 is roughly in line with the 6.0% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.4% annually. So although China United Network Communications is expected to maintain its revenue growth rate, it’s only growing at about the rate of 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 CN¥5.08, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn’t be too quick to come to a conclusion on China United Network Communications. Long-term earnings power is much more important than next year’s profits. We have estimates – from multiple China United Network Communications analysts – going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for China United Network Communications that you need to take into consideration.

Valuation is complex, but we’re helping make it simple.

Find out whether China United Network Communications is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.

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