This Qingdao Haier Biomedical Co.,Ltd (SHSE:688139) Analyst Is Way More Bearish Than They Used To Be

The analyst covering Qingdao Haier Biomedical Co.,Ltd (SHSE:688139) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analyst seeing grey clouds on the horizon.

After the downgrade, the one analyst covering Qingdao Haier BiomedicalLtd is now predicting revenues of CN¥2.7b in 2025. If met, this would reflect a sizeable 20% improvement in sales compared to the last 12 months. Per-share earnings are expected to leap 45% to CN¥1.68. Before this latest update, the analyst had been forecasting revenues of CN¥3.1b and earnings per share (EPS) of CN¥1.93 in 2025. Indeed, we can see that the analyst is a lot more bearish about Qingdao Haier BiomedicalLtd's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Qingdao Haier BiomedicalLtd

What's most unexpected is that the consensus price target rose 16% to CN¥37.00, strongly implying the downgrade to forecasts is not expected to be more than a temporary blip.

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. The analyst is definitely expecting Qingdao Haier BiomedicalLtd's growth to accelerate, with the forecast 20% annualised growth to the end of 2025 ranking favourably alongside historical growth of 15% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 18% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Qingdao Haier BiomedicalLtd is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analyst cut their earnings per share estimates, expecting a clear decline in business conditions. Lamentably, they also downgraded their sales forecasts, but the business is still expected to grow at roughly the same rate as the market itself. The rising price target is a puzzle, but still - with a serious cut to this year's outlook, we wouldn't be surprised if investors were a bit wary of Qingdao Haier BiomedicalLtd.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Qingdao Haier BiomedicalLtd going out as far as 2026, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.