Earnings Miss: Tasly Pharmaceutical Group Co., Ltd Missed EPS By 7.6% And Analysts Are Revising Their Forecasts

Tasly Pharmaceutical Group Co., Ltd (SHSE:600535) just released its latest annual report and things are not looking great. Results look to have been somewhat negative - revenue fell 3.2% short of analyst estimates at CN¥8.5b, and statutory earnings of CN¥0.64 per share missed forecasts by 7.6%. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Tasly Pharmaceutical Group

Taking into account the latest results, the most recent consensus for Tasly Pharmaceutical Group from seven analysts is for revenues of CN¥9.24b in 2025. If met, it would imply a notable 8.7% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 32% to CN¥0.85. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥9.30b and earnings per share (EPS) of CN¥0.85 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at CN¥16.61. 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 Tasly Pharmaceutical Group at CN¥18.00 per share, while the most bearish prices it at CN¥14.50. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. One thing stands out from these estimates, which is that Tasly Pharmaceutical Group is forecast to grow faster in the future than it has in the past, with revenues expected to display 8.7% annualised growth until the end of 2025. If achieved, this would be a much better result than the 17% annual decline 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 12% annually for the foreseeable future. Although Tasly Pharmaceutical Group's revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Tasly Pharmaceutical Group's revenue is expected to perform worse than 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Tasly Pharmaceutical Group. Long-term earnings power is much more important than next year's profits. We have forecasts for Tasly Pharmaceutical Group going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for Tasly Pharmaceutical Group that you need to be mindful of.

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.