Muyuan Foods Co., Ltd. (SZSE:002714) Annual Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Muyuan Foods Co., Ltd. (SZSE:002714) last week reported its latest annual results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. The result was positive overall - although revenues of CN¥138b were in line with what the analysts predicted, Muyuan Foods surprised by delivering a statutory profit of CN¥3.24 per share, modestly greater than expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Following the latest results, Muyuan Foods' 13 analysts are now forecasting revenues of CN¥140.8b in 2025. This would be an okay 2.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 8.1% to CN¥3.56. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥146.3b and earnings per share (EPS) of CN¥4.12 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.

Check out our latest analysis for Muyuan Foods

Despite the cuts to forecast earnings, there was no real change to the CN¥48.17 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Muyuan Foods, with the most bullish analyst valuing it at CN¥56.00 and the most bearish at CN¥35.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Muyuan Foods' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.1% growth on an annualised basis. This is compared to a historical growth rate of 25% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.3% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Muyuan Foods.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Muyuan Foods. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target held steady at CN¥48.17, with the latest estimates not enough to have an impact on their price targets.

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 Muyuan Foods analysts - going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Muyuan Foods that 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.