Earnings Update: Asymchem Laboratories (Tianjin) Co., Ltd. (SZSE:002821) Just Reported And Analysts Are Trimming Their Forecasts

It's been a good week for Asymchem Laboratories (Tianjin) Co., Ltd. (SZSE:002821) shareholders, because the company has just released its latest annual results, and the shares gained 3.7% to CN¥81.05. It looks like the results were a bit of a negative overall. While revenues of CN¥5.8b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.6% to hit CN¥2.69 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Asymchem Laboratories (Tianjin) after the latest results.

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Taking into account the latest results, the current consensus from Asymchem Laboratories (Tianjin)'s 14 analysts is for revenues of CN¥6.56b in 2025. This would reflect a meaningful 13% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to ascend 16% to CN¥3.09. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥7.02b and earnings per share (EPS) of CN¥3.68 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.

View our latest analysis for Asymchem Laboratories (Tianjin)

Despite the cuts to forecast earnings, there was no real change to the CN¥89.55 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Asymchem Laboratories (Tianjin) at CN¥114 per share, while the most bearish prices it at CN¥59.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. It's pretty clear that there is an expectation that Asymchem Laboratories (Tianjin)'s revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 13% growth on an annualised basis. This is compared to a historical growth rate of 20% over the past five years. Compare this to the 218 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 10% per year. So it's pretty clear that, while Asymchem Laboratories (Tianjin)'s revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. 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 Asymchem Laboratories (Tianjin). Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Asymchem Laboratories (Tianjin) analysts - going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Asymchem Laboratories (Tianjin) 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.