Shandong Jinling Mining Co., Ltd. Just Missed Earnings - But Analysts Have Updated Their Models

Last week, you might have seen that Shandong Jinling Mining Co., Ltd. (SZSE:000655) released its yearly result to the market. The early response was not positive, with shares down 2.5% to CN¥6.91 in the past week. Results were mixed, with revenues of CN¥1.5b exceeding expectations, even as earnings per share (EPS) came up short. Statutory earnings were CN¥0.34 per share, -9.7% below whatthe analyst had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what expert is 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 analyst latest (statutory) post-earnings forecasts for next year.

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Following the recent earnings report, the consensus from one analyst covering Shandong Jinling Mining is for revenues of CN¥1.47b in 2025. This implies a measurable 4.9% decline in revenue compared to the last 12 months. Statutory earnings per share are expected to fall 12% to CN¥0.30 in the same period. Yet prior to the latest earnings, the analyst had been anticipated revenues of CN¥1.40b and earnings per share (EPS) of CN¥0.40 in 2025. While next year's revenue estimates increased, there was also a pretty serious reduction to EPS expectations, suggesting the consensus has a bit of a mixed view of these results.

See our latest analysis for Shandong Jinling Mining

The analyst also upgraded Shandong Jinling Mining's price target 19% to CN¥7.11, implying that the higher revenue expected to generate enough value to offset the forecast decline in earnings.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Shandong Jinling Mining's past performance and to peers in the same industry. Over the past five years, revenues have declined around 0.3% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 4.9% decline in revenue until the end of 2025. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 10% annually. So it's pretty clear that, while it does have declining revenues, the analyst also expect Shandong Jinling Mining to suffer worse than the wider industry.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Shandong Jinling Mining. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Shandong Jinling Mining. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Shandong Jinling Mining going out as far as 2027, and you can see them free on our platform here.

It is also worth noting that we have found 3 warning signs for Shandong Jinling Mining (2 can't be ignored!) 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.