What Does The Future Hold For China Resources Boya Bio-pharmaceutical Group Co.,Ltd (SZSE:300294)? These Analysts Have Been Cutting Their Estimates

One thing we could say about the analysts on China Resources Boya Bio-pharmaceutical Group Co.,Ltd (SZSE:300294) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative. The stock price has risen 6.4% to CN¥28.72 over the past week. It will be interesting to see if this downgrade motivates investors to start selling their holdings.

Following the latest downgrade, the five analysts covering China Resources Boya Bio-pharmaceutical GroupLtd provided consensus estimates of CN¥1.9b revenue in 2024, which would reflect a concerning 27% decline on its sales over the past 12 months. Per-share earnings are expected to leap 128% to CN¥1.07. Previously, the analysts had been modelling revenues of CN¥2.3b and earnings per share (EPS) of CN¥1.19 in 2024. Indeed, we can see that analyst sentiment has declined measurably after the new consensus came out, with a substantial drop in revenue estimates and a small dip in EPS estimates to boot.

See our latest analysis for China Resources Boya Bio-pharmaceutical GroupLtd

It'll come as no surprise then, to learn that the analysts have cut their price target 7.6% to CN¥32.42.

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 would highlight that sales are expected to reverse, with a forecast 27% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 1.0% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 25% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - China Resources Boya Bio-pharmaceutical GroupLtd is expected to lag the wider industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for China Resources Boya Bio-pharmaceutical GroupLtd. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that China Resources Boya Bio-pharmaceutical GroupLtd's revenues are expected to grow slower than the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of China Resources Boya Bio-pharmaceutical GroupLtd going forwards.

Still, 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 Boya Bio-pharmaceutical GroupLtd going out to 2026, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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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.