Results: Zhejiang Jasan Holding Group Co., Ltd. Exceeded Expectations And The Consensus Has Updated Its Estimates

Investors in Zhejiang Jasan Holding Group Co., Ltd. (SHSE:603558) had a good week, as its shares rose 6.7% to close at CN¥10.26 following the release of its full-year results. Revenues were CN¥2.3b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of CN¥0.74 were also better than expected, beating analyst predictions by 14%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Zhejiang Jasan Holding Group

Taking into account the latest results, the current consensus from Zhejiang Jasan Holding Group's three analysts is for revenues of CN¥2.65b in 2024. This would reflect a meaningful 16% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to step up 16% to CN¥0.86. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥2.67b and earnings per share (EPS) of CN¥0.78 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at CN¥10.67, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. The most optimistic Zhejiang Jasan Holding Group analyst has a price target of CN¥11.99 per share, while the most pessimistic values it at CN¥10.80. This is a very narrow spread of estimates, implying either that Zhejiang Jasan Holding Group is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Zhejiang Jasan Holding Group's rate of growth is expected to accelerate meaningfully, with the forecast 16% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 8.8% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 16% annually. Zhejiang Jasan Holding Group is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Zhejiang Jasan Holding Group following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Zhejiang Jasan Holding Group. Long-term earnings power is much more important than next year's profits. We have forecasts for Zhejiang Jasan Holding Group going out to 2025, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Zhejiang Jasan Holding Group .

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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.