China Resources Building Materials Technology Holdings Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
Last week saw the newest half-year earnings release from China Resources Building Materials Technology Holdings Limited (HKG:1313), an important milestone in the company's journey to build a stronger business. It was a pretty negative result overall, with revenues of CN¥8.7b missing analyst predictions by 7.5%. Worse, the business reported a statutory loss of CN¥0.064 per share, a substantial decline on analyst expectations of a profit. 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 China Resources Building Materials Technology Holdings after the latest results.
Taking into account the latest results, the current consensus from China Resources Building Materials Technology Holdings' eleven analysts is for revenues of CN¥20.8b in 2026. This would reflect a satisfactory 6.6% increase on its revenue over the past 12 months. China Resources Building Materials Technology Holdings is also expected to turn profitable, with statutory earnings of CN¥0.05 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥20.6b and earnings per share (EPS) of CN¥0.083 in 2026. So there's definitely been a decline in sentiment after the latest results, noting the large cut to new EPS forecasts.
Check out our latest analysis for China Resources Building Materials Technology Holdings
It might be a surprise to learn that the consensus price target fell 6.7% to HK$1.71, with the analysts clearly linking lower forecast earnings to the performance of the stock price. 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$2.50 per share, while the most pessimistic values it at HK$1.10. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. One thing stands out from these estimates, which is that China Resources Building Materials Technology Holdings is forecast to grow faster in the future than it has in the past, with revenues expected to display 14% annualised growth until the end of 2026. If achieved, this would be a much better result than the 13% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 6.3% annually. Not only are China Resources Building Materials Technology Holdings' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for China Resources Building Materials Technology Holdings going out to 2028, and you can see them free on our platform here.
Before you take the next step you should know about the 1 warning sign for China Resources Building Materials Technology Holdings that we have uncovered.
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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.