Here's What Analysts Are Forecasting For Sichuan Biokin Pharmaceutical Co.,Ltd. (SHSE:688506) After Its Annual Results

It's been a pretty great week for Sichuan Biokin Pharmaceutical Co.,Ltd. (SHSE:688506) shareholders, with its shares surging 18% to CN¥249 in the week since its latest full-year results. Results look mixed - while revenue fell marginally short of analyst estimates at CN¥5.8b, statutory earnings were in line with expectations, at CN¥9.25 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 Sichuan Biokin PharmaceuticalLtd after the latest results.

Taking into account the latest results, the current consensus, from the three analysts covering Sichuan Biokin PharmaceuticalLtd, is for revenues of CN¥2.24b in 2025. This implies a substantial 61% reduction in Sichuan Biokin PharmaceuticalLtd's revenue over the past 12 months. Statutory earnings per share are expected to dive 98% to CN¥0.16 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥2.25b and earnings per share (EPS) of CN¥0.34 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a large cut to EPS estimates.

See our latest analysis for Sichuan Biokin PharmaceuticalLtd

It might be a surprise to learn that the consensus price target was broadly unchanged at CN¥280, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. The most optimistic Sichuan Biokin PharmaceuticalLtd analyst has a price target of CN¥315 per share, while the most pessimistic values it at CN¥226. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that revenue is expected to reverse, with a forecast 61% annualised decline to the end of 2025. That is a notable change from historical growth of 43% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 10% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Sichuan Biokin PharmaceuticalLtd is expected to lag the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Sichuan Biokin PharmaceuticalLtd. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Sichuan Biokin PharmaceuticalLtd's revenue is expected to perform worse than the wider industry. The consensus price target held steady at CN¥280, 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 Sichuan Biokin PharmaceuticalLtd analysts - going out to 2027, 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 2 warning signs with Sichuan Biokin PharmaceuticalLtd (at least 1 which is a bit concerning) , and understanding them 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.