Jiangsu King's Luck Brewery Joint-Stock Co.,Ltd. (SHSE:603369) Just Released Its First-Quarter Earnings: Here's What Analysts Think

Last week saw the newest first-quarter earnings release from Jiangsu King's Luck Brewery Joint-Stock Co.,Ltd. (SHSE:603369), an important milestone in the company's journey to build a stronger business. It was a credible result overall, with revenues of CN¥4.7b and statutory earnings per share of CN¥1.23 both in line with analyst estimates, showing that Jiangsu King's Luck Brewery Ltd is executing in line with expectations. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Jiangsu King's Luck Brewery Ltd

Taking into account the latest results, the most recent consensus for Jiangsu King's Luck Brewery Ltd from 15 analysts is for revenues of CN¥12.3b in 2024. If met, it would imply a notable 12% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to climb 11% to CN¥3.04. Before this earnings report, the analysts had been forecasting revenues of CN¥12.4b and earnings per share (EPS) of CN¥3.09 in 2024. 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.

There were no changes to revenue or earnings estimates or the price target of CN¥68.51, suggesting that the company has met expectations in its recent result. 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 Jiangsu King's Luck Brewery Ltd at CN¥77.00 per share, while the most bearish prices it at CN¥46.40. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Jiangsu King's Luck Brewery Ltd's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Jiangsu King's Luck Brewery Ltd'shistorical trends, as the 16% annualised revenue growth to the end of 2024 is roughly in line with the 19% annual growth 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 revenues grow 13% per year. So although Jiangsu King's Luck Brewery Ltd is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share 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 held steady at CN¥68.51, 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 Jiangsu King's Luck Brewery Ltd going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Jiangsu King's Luck Brewery Ltd has 2 warning signs (and 1 which is a bit concerning) we think you should know about.

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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.