It's been quite a week for Angelalign Technology Inc. (HKG:6699) shareholders. The company's shares rose 16% to HK$61.40 in the week following the release of its latest half-yearly results. Statutory earnings per share disappoint, coming in at CN¥0.13, below expectations by -51%. Fortunately, revenue was quite strong at CN¥861 million, beating expectations by 18%. The analysts typically update their forecasts with each earnings release and we can look from their forecasts to determine whether their view of the company has changed or if there are any new concerns to look out for. With this in mind, we've gathered the latest statutory forecasts to find out what the analysts are expecting for next year.
Check out our latest analysis for Angelalign Technology
SEHK:6699 Revenue and Sales Growth August 25, 2024
Taking into account the latest results, the current consensus from Angelaine Technology's 13 analysts is for revenues of RMB1.85b in 2024. This reflects a 7.3% increase on revenues over the last 12 months. Statutory earnings per share are forecast to rise 70% to RMB0.44. Prior to this report, the analysts had been forecasting revenues of RMB1.75b and earnings per share (EPS) of RMB0.43 in 2024. So, while the analysts have slightly increased their revenue forecasts, there doesn't seem to have been a major change in sentiment following the latest results.
Despite the increase in revenue estimates, there is no change to the consensus price target of HK$84.70, suggesting that analysts are focusing on revenue as a driver of value creation. However, there is another way to look at price targets – looking at the range of price targets put forward by analysts, as a wide range of forecasts can suggest different views on the possible outcomes of the business. Currently, the most bullish analyst values Angelalign Technology at HK$104 per share, while the most bearish values it at HK$64.14. Analysts undoubtedly have a range of views on the business, but in our view, the difference in forecasts is not large enough to suggest that extreme outcomes could be in store for Angelalign Technology shareholders.
One way to learn more about these forecasts is to compare past performance with the performance of other companies in the same industry. Analysts are certainly expecting Angelalign Technology's growth to accelerate, with a forecasted 15% annual growth rate through the end of 2024 stacking up well alongside the 12% annual growth rate over the past three years. Let's compare this to other companies in the same industry, which are expected to see revenue growth of 21% per year. It's clear that while future growth prospects are brighter than recent times, Angelalign Technology's growth is expected to be slower than the industry as a whole.
Conclusion
The most obvious conclusion is that there hasn't been a material change to the outlook for the business recently, with the analysts leaving their revenue forecasts unchanged as previously expected. The good news is that the analysts have also raised their revenue estimates, but our data suggests that the company is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that there hasn't been a material change to the intrinsic value of the business with the latest estimates.
With that in mind, we probably shouldn't jump to any conclusions about Angelalign Technology too quickly – its long term earnings strength is much more important than next year's profits. At Simply Wall St, we have all of the analyst forecasts for Angelalign Technology going out to 2026, and you can see them free on our platform.
With that being said, the threat of investment risk is always present and should be considered, and we've identified 2 warning signs with Angelalign Technology, and understanding these should be part of your investment process.
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This article by Simply Wall St is of general nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology, and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks, and does not take into account your objectives or financial situation. We aim to provide long-term analysis driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned herein.
