The China Resources Double-Crane Pharmaceutical Co.,Ltd. (SHSE:600062) First-Quarter Results Are Out And Analysts Have Published New Forecasts

Last week, you might have seen that China Resources Double-Crane Pharmaceutical Co.,Ltd. (SHSE:600062) released its first-quarter result to the market. The early response was not positive, with shares down 8.4% to CN¥22.17 in the past week. Results were roughly in line with estimates, with revenues of CN¥2.8b and statutory earnings per share of CN¥1.30. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for China Resources Double-Crane PharmaceuticalLtd

Taking into account the latest results, the most recent consensus for China Resources Double-Crane PharmaceuticalLtd from three analysts is for revenues of CN¥12.0b in 2024. If met, it would imply a notable 16% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 29% to CN¥1.70. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥12.2b and earnings per share (EPS) of CN¥1.72 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of CN¥26.92, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values China Resources Double-Crane PharmaceuticalLtd at CN¥29.76 per share, while the most bearish prices it at CN¥25.00. 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting China Resources Double-Crane PharmaceuticalLtd's growth to accelerate, with the forecast 22% annualised growth to the end of 2024 ranking favourably alongside historical growth of 4.0% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that China Resources Double-Crane PharmaceuticalLtd is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at CN¥26.92, with the latest estimates not enough to have an impact on their price targets.

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

It is also worth noting that we have found 1 warning sign for China Resources Double-Crane PharmaceuticalLtd 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.