Earnings Miss: Here's What MeiHua Holdings Group Co.,Ltd (SHSE:600873) Analysts Are Forecasting For This Year

It's shaping up to be a tough period for MeiHua Holdings Group Co.,Ltd (SHSE:600873), which a week ago released some disappointing full-year results that could have a notable impact on how the market views the stock. Earnings fell badly short of analyst estimates, with CN¥25b revenues missing by 14%, and statutory earnings per share (EPS) of CN¥0.94 falling short of forecasts by some -12%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on MeiHua Holdings GroupLtd after the latest results.

Taking into account the latest results, the most recent consensus for MeiHua Holdings GroupLtd from four analysts is for revenues of CN¥28.5b in 2025. If met, it would imply a notable 14% increase on its revenue over the past 12 months. Per-share earnings are expected to climb 18% to CN¥1.13. Before this earnings report, the analysts had been forecasting revenues of CN¥31.1b and earnings per share (EPS) of CN¥1.17 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

See our latest analysis for MeiHua Holdings GroupLtd

The consensus price target fell 10% to CN¥12.57, with the weaker earnings outlook clearly leading valuation estimates. 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 MeiHua Holdings GroupLtd analyst has a price target of CN¥13.70 per share, while the most pessimistic values it at CN¥11.80. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 14% growth on an annualised basis. That is in line with its 12% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 16% per year. It's clear that while MeiHua Holdings GroupLtd's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for MeiHua Holdings GroupLtd. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 MeiHua Holdings GroupLtd going out to 2027, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for MeiHua Holdings GroupLtd that 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.