JINHUI LIQUOR Co.,Ltd. Just Missed EPS By 9.4%: Here's What Analysts Think Will Happen Next

It's been a good week for JINHUI LIQUOR Co.,Ltd. (SHSE:603919) shareholders, because the company has just released its latest yearly results, and the shares gained 3.8% to CN¥21.85. It looks like the results were a bit of a negative overall. While revenues of CN¥2.5b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 9.4% to hit CN¥0.65 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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 JINHUI LIQUORLtd

Taking into account the latest results, the most recent consensus for JINHUI LIQUORLtd from ten analysts is for revenues of CN¥3.07b in 2024. If met, it would imply a sizeable 20% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 26% to CN¥0.82. Before this earnings report, the analysts had been forecasting revenues of CN¥3.08b and earnings per share (EPS) of CN¥0.96 in 2024. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.

The average price target fell 5.8% to CN¥28.53, with reduced earnings forecasts clearly tied to a lower valuation estimate. 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 JINHUI LIQUORLtd at CN¥35.35 per share, while the most bearish prices it at CN¥25.51. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that JINHUI LIQUORLtd's rate of growth is expected to accelerate meaningfully, with the forecast 20% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 11% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 14% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that JINHUI LIQUORLtd is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for JINHUI LIQUORLtd. 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 JINHUI LIQUORLtd's future valuation.

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. At Simply Wall St, we have a full range of analyst estimates for JINHUI LIQUORLtd going out to 2026, and you can see them free on our platform here..

You still need to take note of risks, for example - JINHUI LIQUORLtd has 1 warning sign we think you should be aware 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.