Jonjee Hi-Tech Industrial and Commercial Holding Co.,Ltd Just Recorded A 15% EPS Beat: Here's What Analysts Are Forecasting Next

It's been a pretty great week for Jonjee Hi-Tech Industrial and Commercial Holding Co.,Ltd (SHSE:600872) shareholders, with its shares surging 10% to CN¥23.47 in the week since its latest third-quarter results. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at CN¥1.3b, statutory earnings beat expectations by a notable 15%, coming in at CN¥0.29 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Jonjee Hi-Tech Industrial and Commercial HoldingLtd

After the latest results, the 19 analysts covering Jonjee Hi-Tech Industrial and Commercial HoldingLtd are now predicting revenues of CN¥6.20b in 2025. If met, this would reflect a major 21% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to dive 76% to CN¥1.13 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥6.22b and earnings per share (EPS) of CN¥1.12 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 7.1% to CN¥25.99. It looks as though they previously had some doubts over whether the business would live up to their expectations. 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. There are some variant perceptions on Jonjee Hi-Tech Industrial and Commercial HoldingLtd, with the most bullish analyst valuing it at CN¥36.40 and the most bearish at CN¥17.50 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying 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. It's clear from the latest estimates that Jonjee Hi-Tech Industrial and Commercial HoldingLtd's rate of growth is expected to accelerate meaningfully, with the forecast 16% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 2.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Jonjee Hi-Tech Industrial and Commercial HoldingLtd 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 estimates - from multiple Jonjee Hi-Tech Industrial and Commercial HoldingLtd analysts - 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 3 warning signs for Jonjee Hi-Tech Industrial and Commercial HoldingLtd (2 are concerning!) 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.