Analysts Are Updating Their China Resources Sanjiu Medical & Pharmaceutical Co., Ltd. (SZSE:000999) Estimates After Its Second-Quarter Results

The quarterly results for China Resources Sanjiu Medical & Pharmaceutical Co., Ltd. (SZSE:000999) were released last week, making it a good time to revisit its performance. China Resources Sanjiu Medical & Pharmaceutical missed revenue estimates by 4.5%, coming in atCN¥6.8b, although statutory earnings per share (EPS) of CN¥0.81 beat expectations, coming in 3.6% ahead of analyst estimates. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on China Resources Sanjiu Medical & Pharmaceutical after the latest results.

View our latest analysis for China Resources Sanjiu Medical & Pharmaceutical

Taking into account the latest results, the most recent consensus for China Resources Sanjiu Medical & Pharmaceutical from 13 analysts is for revenues of CN¥27.2b in 2024. If met, it would imply a credible 5.8% increase on its revenue over the past 12 months. Statutory per share are forecast to be CN¥2.67, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥27.6b and earnings per share (EPS) of CN¥2.68 in 2024. 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.

There were no changes to revenue or earnings estimates or the price target of CN¥54.17, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on China Resources Sanjiu Medical & Pharmaceutical, with the most bullish analyst valuing it at CN¥63.27 and the most bearish at CN¥43.99 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await China Resources Sanjiu Medical & Pharmaceutical shareholders.

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. We can infer from the latest estimates that forecasts expect a continuation of China Resources Sanjiu Medical & Pharmaceutical'shistorical trends, as the 12% annualised revenue growth to the end of 2024 is roughly in line with the 14% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 12% annually. It's clear that while China Resources Sanjiu Medical & Pharmaceutical's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate 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.

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 forecasts for China Resources Sanjiu Medical & Pharmaceutical 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 Sanjiu Medical & Pharmaceutical 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.