China Resources Sanjiu Medical & Pharmaceutical Co., Ltd. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

China Resources Sanjiu Medical & Pharmaceutical Co., Ltd. (SZSE:000999) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat forecasts, with revenue of CN¥7.3b, some 9.4% above estimates, and statutory earnings per share (EPS) coming in at CN¥1.39, 34% ahead of expectations. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for China Resources Sanjiu Medical & Pharmaceutical

Following the latest results, China Resources Sanjiu Medical & Pharmaceutical's 14 analysts are now forecasting revenues of CN¥27.6b in 2024. This would be a credible 7.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to ascend 10% to CN¥3.41. Before this earnings report, the analysts had been forecasting revenues of CN¥27.5b and earnings per share (EPS) of CN¥3.35 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of CN¥68.23, suggesting that the company has met expectations in its recent result. 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. There are some variant perceptions on China Resources Sanjiu Medical & Pharmaceutical, with the most bullish analyst valuing it at CN¥82.25 and the most bearish at CN¥55.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the China Resources Sanjiu Medical & Pharmaceutical's past performance and to peers in the same industry. It's pretty clear that there is an expectation that China Resources Sanjiu Medical & Pharmaceutical's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 10% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 14% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than China Resources Sanjiu Medical & Pharmaceutical.

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 China Resources Sanjiu Medical & Pharmaceutical'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.

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. At Simply Wall St, we have a full range of analyst estimates for China Resources Sanjiu Medical & Pharmaceutical going out to 2026, 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 1 warning sign for China Resources Sanjiu Medical & Pharmaceutical that you need to be mindful of.

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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.