Lao Feng Xiang Co., Ltd. Just Missed Earnings And Its Revenue Numbers Were Weaker Than Expected

Investors in Lao Feng Xiang Co., Ltd. (SHSE:600612) had a good week, as its shares rose 7.2% to close at CN¥54.50 following the release of its annual results. Revenues came in 8.2% below expectations, at CN¥57b. Statutory earnings per share were relatively better off, with a per-share profit of CN¥3.73 being roughly in line with analyst estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Lao Feng Xiang after the latest results.

View our latest analysis for Lao Feng Xiang

After the latest results, the eleven analysts covering Lao Feng Xiang are now predicting revenues of CN¥68.3b in 2025. If met, this would reflect a substantial 20% improvement in revenue compared to the last 12 months. Per-share earnings are expected to step up 16% to CN¥4.31. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥69.4b and earnings per share (EPS) of CN¥4.34 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.

With no major changes to earnings forecasts, the consensus price target fell 5.1% to CN¥54.86, suggesting that the analysts might have previously been hoping for an earnings upgrade. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Lao Feng Xiang at CN¥64.50 per share, while the most bearish prices it at CN¥41.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Lao Feng Xiang's growth to accelerate, with the forecast 20% annualised growth to the end of 2025 ranking favourably alongside historical growth of 7.1% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Lao Feng Xiang to grow faster than 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 major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Lao Feng Xiang's future valuation.

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 forecasts for Lao Feng Xiang going out to 2026, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, 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.