Jiangsu Nhwa Pharmaceutical Co., LTD (SZSE:002262) Just Reported Third-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

It's shaping up to be a tough period for Jiangsu Nhwa Pharmaceutical Co., LTD (SZSE:002262), which a week ago released some disappointing third-quarter results that could have a notable impact on how the market views the stock. Results look to have been somewhat negative - revenue fell 5.5% short of analyst estimates at CN¥1.4b, and statutory earnings of CN¥0.39 per share missed forecasts by 4.9%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Jiangsu Nhwa Pharmaceutical after the latest results.

View our latest analysis for Jiangsu Nhwa Pharmaceutical

Following the latest results, Jiangsu Nhwa Pharmaceutical's eight analysts are now forecasting revenues of CN¥6.85b in 2025. This would be a huge 24% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 24% to CN¥1.43. In the lead-up to this report, the analysts had been modelling revenues of CN¥6.92b and earnings per share (EPS) of CN¥1.45 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.

The analysts reconfirmed their price target of CN¥32.04, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Jiangsu Nhwa Pharmaceutical analyst has a price target of CN¥36.00 per share, while the most pessimistic values it at CN¥28.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. The analysts are definitely expecting Jiangsu Nhwa Pharmaceutical's growth to accelerate, with the forecast 19% annualised growth to the end of 2025 ranking favourably alongside historical growth of 8.4% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 13% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Jiangsu Nhwa Pharmaceutical is expected to grow much faster than its 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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. We have estimates - from multiple Jiangsu Nhwa Pharmaceutical analysts - going out to 2026, and you can see them free on our platform here.

We also provide an overview of the Jiangsu Nhwa Pharmaceutical Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.