Earnings Report: Jafron Biomedical Co.,Ltd. Missed Revenue Estimates By 8.1%

Investors in Jafron Biomedical Co.,Ltd. (SZSE:300529) had a good week, as its shares rose 3.8% to close at CN¥32.36 following the release of its third-quarter results. Revenues came in 8.1% below expectations, at CN¥700m. Statutory earnings per share were relatively better off, with a per-share profit of CN¥0.57 being roughly in line with analyst estimates. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Jafron BiomedicalLtd

Taking into account the latest results, the consensus forecast from Jafron BiomedicalLtd's four analysts is for revenues of CN¥3.66b in 2025. This reflects a major 39% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 36% to CN¥1.42. Before this earnings report, the analysts had been forecasting revenues of CN¥3.65b and earnings per share (EPS) of CN¥1.31 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 13% to CN¥38.21. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Jafron BiomedicalLtd analyst has a price target of CN¥42.41 per share, while the most pessimistic values it at CN¥34.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Jafron BiomedicalLtd's growth to accelerate, with the forecast 30% annualised growth to the end of 2025 ranking favourably alongside historical growth of 7.8% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 19% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Jafron BiomedicalLtd to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Jafron BiomedicalLtd's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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

Before you take the next step you should know about the 1 warning sign for Jafron BiomedicalLtd that we have uncovered.

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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.