China Resources Boya Bio-pharmaceutical Group Co.,Ltd Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
China Resources Boya Bio-pharmaceutical Group Co.,Ltd (SZSE:300294) shareholders are probably feeling a little disappointed, since its shares fell 3.5% to CN¥27.52 in the week after its latest full-year results. Revenue of CN¥1.7b surpassed estimates by 2.1%, although statutory earnings per share missed badly, coming in 22% below expectations at CN¥0.79 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the most recent consensus for China Resources Boya Bio-pharmaceutical GroupLtd from seven analysts is for revenues of CN¥1.98b in 2025. If met, it would imply a notable 14% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 37% to CN¥1.08. Before this earnings report, the analysts had been forecasting revenues of CN¥2.01b and earnings per share (EPS) of CN¥1.22 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.
View our latest analysis for China Resources Boya Bio-pharmaceutical GroupLtd
The consensus price target held steady at CN¥36.70, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on China Resources Boya Bio-pharmaceutical GroupLtd, with the most bullish analyst valuing it at CN¥40.00 and the most bearish at CN¥33.79 per share. This is a very narrow spread of estimates, implying either that China Resources Boya Bio-pharmaceutical GroupLtd is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that China Resources Boya Bio-pharmaceutical GroupLtd's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 14% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 5.2% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 25% annually for the foreseeable future. So although China Resources Boya Bio-pharmaceutical GroupLtd's revenue growth is expected to improve, it is still expected to grow slower than the industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for China Resources Boya Bio-pharmaceutical GroupLtd. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at CN¥36.70, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple China Resources Boya Bio-pharmaceutical GroupLtd analysts - going out to 2027, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 1 warning sign for China Resources Boya Bio-pharmaceutical GroupLtd you should be aware of.
Valuation is complex, but we're here to simplify it.
Discover if China Resources Boya Bio-pharmaceutical GroupLtd might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.