China Resources Double-Crane Pharmaceutical Co.,Ltd. (SHSE:600062) Just Reported And Analysts Have Been Lifting Their Price Targets

China Resources Double-Crane Pharmaceutical Co.,Ltd. (SHSE:600062) last week reported its latest annual results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. China Resources Double-Crane PharmaceuticalLtd missed revenue estimates by 2.3%, coming in atCN¥10b, although statutory earnings per share (EPS) of CN¥1.30 beat expectations, coming in 2.4% ahead of analyst estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for China Resources Double-Crane PharmaceuticalLtd

Following the latest results, China Resources Double-Crane PharmaceuticalLtd's three analysts are now forecasting revenues of CN¥11.0b in 2024. This would be a meaningful 8.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 11% to CN¥1.43. In the lead-up to this report, the analysts had been modelling revenues of CN¥11.8b and earnings per share (EPS) of CN¥1.50 in 2024. 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.

What's most unexpected is that the consensus price target rose 5.4% to CN¥24.91, strongly implying the downgrade to forecasts is not expected to be more than a temporary blip. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic China Resources Double-Crane PharmaceuticalLtd analyst has a price target of CN¥26.00 per share, while the most pessimistic values it at CN¥23.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the China Resources Double-Crane PharmaceuticalLtd's past performance and to peers in the same industry. It's clear from the latest estimates that China Resources Double-Crane PharmaceuticalLtd's rate of growth is expected to accelerate meaningfully, with the forecast 8.0% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 2.7% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 15% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, China Resources Double-Crane PharmaceuticalLtd is expected to grow slower than the wider 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. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 China Resources Double-Crane PharmaceuticalLtd going out to 2026, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with China Resources Double-Crane PharmaceuticalLtd , and understanding this should be part of your investment process.

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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.