Jiangsu Yanghe Brewery Joint-Stock Co., Ltd. (SZSE:002304) Analysts Are Cutting Their Estimates: Here's What You Need To Know

Shareholders might have noticed that Jiangsu Yanghe Brewery Joint-Stock Co., Ltd. (SZSE:002304) filed its quarterly result this time last week. The early response was not positive, with shares down 3.8% to CN¥95.07 in the past week. It looks like the results were a bit of a negative overall. While revenues of CN¥16b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.2% to hit CN¥4.02 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Jiangsu Yanghe Brewery

Following the latest results, Jiangsu Yanghe Brewery's 20 analysts are now forecasting revenues of CN¥36.5b in 2024. This would be an okay 6.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 7.2% to CN¥7.33. Before this earnings report, the analysts had been forecasting revenues of CN¥39.0b and earnings per share (EPS) of CN¥8.08 in 2024. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

The consensus price target fell 7.9% to CN¥133, with the weaker earnings outlook clearly leading valuation estimates. 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. The most optimistic Jiangsu Yanghe Brewery analyst has a price target of CN¥185 per share, while the most pessimistic values it at CN¥90.00. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Jiangsu Yanghe Brewery's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Jiangsu Yanghe Brewery'shistorical trends, as the 8.6% annualised revenue growth to the end of 2024 is roughly in line with the 9.3% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 13% annually. So it's pretty clear that Jiangsu Yanghe Brewery is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Jiangsu Yanghe Brewery's future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Jiangsu Yanghe Brewery analysts - going out to 2026, and you can see them free on our platform here.

You can also see our analysis of Jiangsu Yanghe Brewery's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.