Shanghai Jin Jiang International Hotels Co., Ltd. (SHSE:600754) Annual Results: Here's What Analysts Are Forecasting For This Year

Shanghai Jin Jiang International Hotels Co., Ltd. (SHSE:600754) came out with its full-year results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Revenues of CN¥15b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at CN¥0.94, missing estimates by 4.4%. 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. 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 Shanghai Jin Jiang International Hotels

After the latest results, the 18 analysts covering Shanghai Jin Jiang International Hotels are now predicting revenues of CN¥15.4b in 2024. If met, this would reflect a satisfactory 4.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 63% to CN¥1.53. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥15.8b and earnings per share (EPS) of CN¥1.49 in 2024. So it's pretty clear that while sentiment around revenues has declined following the latest results, the analysts are now more bullish on the company's earnings power.

There's been no real change to the average price target of CN¥37.31, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Shanghai Jin Jiang International Hotels at CN¥68.00 per share, while the most bearish prices it at CN¥22.00. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Shanghai Jin Jiang International Hotels' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 4.8% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 3.5% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 19% per year. Although Shanghai Jin Jiang International Hotels' revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Shanghai Jin Jiang International Hotels' earnings potential next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Even so, earnings are more important to the intrinsic value of the business. The consensus price target held steady at CN¥37.31, with the latest estimates not enough to have an impact on their price targets.

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 Shanghai Jin Jiang International Hotels going out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Shanghai Jin Jiang International Hotels that you need to be mindful of.

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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.