Revenue Miss: Jinyu Bio-technology Co., Ltd. Fell 9.1% Short Of Analyst Revenue Estimates And Analysts Have Been Revising Their Models

Jinyu Bio-technology Co., Ltd. (SHSE:600201) last week reported its latest half-year results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Results look mixed - while revenue fell marginally short of analyst estimates at CN¥612m, statutory earnings were in line with expectations, at CN¥0.11 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Jinyu Bio-technology after the latest results.

View our latest analysis for Jinyu Bio-technology

Taking into account the latest results, the consensus forecast from Jinyu Bio-technology's eight analysts is for revenues of CN¥1.74b in 2024. This reflects a notable 14% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 6.7% to CN¥0.26. In the lead-up to this report, the analysts had been modelling revenues of CN¥1.83b and earnings per share (EPS) of CN¥0.32 in 2024. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.

The consensus price target fell 12% to CN¥8.34, with the weaker earnings outlook clearly leading valuation estimates. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Jinyu Bio-technology analyst has a price target of CN¥11.00 per share, while the most pessimistic values it at CN¥6.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. It's clear from the latest estimates that Jinyu Bio-technology's rate of growth is expected to accelerate meaningfully, with the forecast 30% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 3.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 25% annually. Jinyu Bio-technology is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

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. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Jinyu Bio-technology 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 Jinyu Bio-technology 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.