Shanghai Jahwa United Co., Ltd. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

The analysts might have been a bit too bullish on Shanghai Jahwa United Co., Ltd. (SHSE:600315), given that the company fell short of expectations when it released its yearly results last week. Shanghai Jahwa United missed earnings this time around, with CN¥6.6b revenue coming in 8.9% below what the analysts had modelled. Statutory earnings per share (EPS) of CN¥0.75 also fell short of expectations by 15%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Shanghai Jahwa United

Taking into account the latest results, the consensus forecast from Shanghai Jahwa United's 22 analysts is for revenues of CN¥7.17b in 2024. This reflects a solid 8.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 21% to CN¥0.89. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥7.90b and earnings per share (EPS) of CN¥1.06 in 2024. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the CN¥23.73 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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 Shanghai Jahwa United at CN¥33.00 per share, while the most bearish prices it at CN¥17.00. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Shanghai Jahwa United is forecast to grow faster in the future than it has in the past, with revenues expected to display 8.7% annualised growth until the end of 2024. If achieved, this would be a much better result than the 1.2% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 15% per year. So although Shanghai Jahwa United's revenue growth is expected to improve, it is still expected to grow slower than the 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. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 Shanghai Jahwa United going out to 2026, and you can see them free on our platform here..

You still need to take note of risks, for example - Shanghai Jahwa United 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.