Zhejiang Sanmei Chemical Industry Co.,Ltd. Just Missed Earnings - But Analysts Have Updated Their Models

Zhejiang Sanmei Chemical Industry Co.,Ltd. (SHSE:603379) just released its latest quarterly report and things are not looking great. Zhejiang Sanmei Chemical IndustryLtd delivered a grave earnings miss, with both revenues (CN¥999m) and statutory earnings per share (CN¥0.29) falling badly short of analyst expectations. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Zhejiang Sanmei Chemical IndustryLtd

Taking into account the latest results, the current consensus from Zhejiang Sanmei Chemical IndustryLtd's four analysts is for revenues of CN¥5.03b in 2025. This would reflect a sizeable 34% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 67% to CN¥1.65. In the lead-up to this report, the analysts had been modelling revenues of CN¥5.41b and earnings per share (EPS) of CN¥1.66 in 2025. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.

It will come as no surprise then, that the consensus price target fell 27% to CN¥40.04following these changes. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Zhejiang Sanmei Chemical IndustryLtd analyst has a price target of CN¥47.68 per share, while the most pessimistic values it at CN¥32.40. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Zhejiang Sanmei Chemical IndustryLtd's growth to accelerate, with the forecast 26% annualised growth to the end of 2025 ranking favourably alongside historical growth of 2.7% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 16% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Zhejiang Sanmei Chemical IndustryLtd is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also downgraded Zhejiang Sanmei Chemical IndustryLtd's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Still, earnings are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Zhejiang Sanmei Chemical IndustryLtd's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Zhejiang Sanmei Chemical IndustryLtd. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Zhejiang Sanmei Chemical IndustryLtd analysts - going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Zhejiang Sanmei Chemical IndustryLtd (1 is significant!) that you need to take into consideration.

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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.