Jiangsu Hengrui Medicine Co., Ltd. Just Recorded A 6.4% EPS Beat: Here's What Analysts Are Forecasting Next

Jiangsu Hengrui Medicine Co., Ltd. (SHSE:600276) just released its latest full-year results and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 3.2% to hit CN¥28b. Statutory earnings per share (EPS) came in at CN¥1.00, some 6.4% above whatthe analysts had expected. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

After the latest results, the 22 analysts covering Jiangsu Hengrui Medicine are now predicting revenues of CN¥30.7b in 2025. If met, this would reflect a decent 9.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 8.0% to CN¥1.08. In the lead-up to this report, the analysts had been modelling revenues of CN¥29.8b and earnings per share (EPS) of CN¥1.03 in 2025. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

See our latest analysis for Jiangsu Hengrui Medicine

Despite these upgrades,the analysts have not made any major changes to their price target of CN¥61.71, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Jiangsu Hengrui Medicine at CN¥123 per share, while the most bearish prices it at CN¥45.50. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Jiangsu Hengrui Medicine's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 9.7% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 1.5% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 10% annually. So it looks like Jiangsu Hengrui Medicine is expected to grow at about the same rate as 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 Jiangsu Hengrui Medicine following these results. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Jiangsu Hengrui Medicine going out to 2027, and you can see them free on our platform here.

You can also see our analysis of Jiangsu Hengrui Medicine's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.