Stock Analysis

Shanghai Jahwa United Co., Ltd. Just Missed Earnings; Here's What Analysts Are Forecasting Now

SHSE:600315
Source: Shutterstock

Last week, you might have seen that Shanghai Jahwa United Co., Ltd. (SHSE:600315) released its third-quarter result to the market. The early response was not positive, with shares down 3.8% to CN¥16.47 in the past week. Revenues missed expectations, with revenue of CN¥1.2b falling 18% short of forecasts. Earnings correspondingly dipped, with Shanghai Jahwa United reporting a statutory loss of CN¥0.11 per share, where the analysts were expecting a profit. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Shanghai Jahwa United

earnings-and-revenue-growth
SHSE:600315 Earnings and Revenue Growth October 31st 2024

Taking into account the latest results, the consensus forecast from Shanghai Jahwa United's 20 analysts is for revenues of CN¥7.00b in 2025. This reflects a decent 17% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 96% to CN¥0.78. In the lead-up to this report, the analysts had been modelling revenues of CN¥7.07b and earnings per share (EPS) of CN¥0.81 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

The consensus price target held steady at CN¥16.64, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Shanghai Jahwa United analyst has a price target of CN¥23.00 per share, while the most pessimistic values it at CN¥11.80. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. For example, we noticed that Shanghai Jahwa United's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 13% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 3.3% a year 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 17% per year. Although Shanghai Jahwa United's revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader 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 plus side, there were no major changes to revenue estimates; although 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. 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..

Even so, be aware that Shanghai Jahwa United is showing 3 warning signs in our investment analysis , you should know about...

New: Manage All Your Stock Portfolios in One Place

We've created the ultimate portfolio companion for stock investors, and it's free.

• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks via email or mobile
• Track the Fair Value of your stocks

Try a Demo Portfolio for Free

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.