Shanghai Jahwa United Co., Ltd. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

It's been a good week for Shanghai Jahwa United Co., Ltd. (SHSE:600315) shareholders, because the company has just released its latest first-quarter results, and the shares gained 9.8% to CN¥19.68. The results were mixed; although revenues of CN¥1.9b fell 12% short of analyst estimates, statutory earnings per share (EPS) of CN¥0.38 beat expectations by 13%. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Shanghai Jahwa United

Following the latest results, Shanghai Jahwa United's 22 analysts are now forecasting revenues of CN¥7.21b in 2024. This would be a solid 10% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 13% to CN¥0.88. Before this earnings report, the analysts had been forecasting revenues of CN¥7.27b and earnings per share (EPS) of CN¥0.88 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at CN¥19.91. 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. There are some variant perceptions on Shanghai Jahwa United, with the most bullish analyst valuing it at CN¥25.00 and the most bearish at CN¥15.00 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.

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 14% annualised growth until the end of 2024. If achieved, this would be a much better result than the 1.9% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 15% annually. So while Shanghai Jahwa United's revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at CN¥19.91, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. 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.