Shanjin International Gold Co., Ltd. Just Beat Revenue By 30%: Here's What Analysts Think Will Happen Next

It's been a good week for Shanjin International Gold Co., Ltd. (SZSE:000975) shareholders, because the company has just released its latest quarterly results, and the shares gained 2.6% to CN¥17.68. Revenue of CN¥3.7b came in a notable 30% ahead of expectations, while statutory earnings of CN¥0.51 were in line with what the analysts had been forecasting. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Shanjin International Gold

Following last week's earnings report, Shanjin International Gold's ten analysts are forecasting 2024 revenues to be CN¥9.88b, approximately in line with the last 12 months. Per-share earnings are expected to climb 18% to CN¥0.75. Before this earnings report, the analysts had been forecasting revenues of CN¥9.76b and earnings per share (EPS) of CN¥0.70 in 2024. So the consensus seems to have become somewhat more optimistic on Shanjin International Gold's earnings potential following these results.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 5.6% to CN¥20.47. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Shanjin International Gold, with the most bullish analyst valuing it at CN¥22.03 and the most bearish at CN¥16.65 per share. This is a very narrow spread of estimates, implying either that Shanjin International Gold is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 3.1% by the end of 2024. This indicates a significant reduction from annual growth of 10% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 9.6% per year. It's pretty clear that Shanjin International Gold's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Shanjin International Gold following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Shanjin International Gold's revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Shanjin International Gold analysts - going out to 2026, 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 Shanjin International Gold 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.