CN¥38.00: That's What Analysts Think Sailvan Times Co., Ltd. (SZSE:301381) Is Worth After Its Latest Results

As you might know, Sailvan Times Co., Ltd. (SZSE:301381) recently reported its annual numbers. It was a pretty mixed result, with revenues beating expectations to hit CN¥6.6b. Statutory earnings fell 4.6% short of analyst forecasts, reaching CN¥0.90 per share. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Sailvan Times

Following the latest results, Sailvan Times' four analysts are now forecasting revenues of CN¥8.39b in 2024. This would be a major 28% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 34% to CN¥1.13. In the lead-up to this report, the analysts had been modelling revenues of CN¥8.25b and earnings per share (EPS) of CN¥1.30 in 2024. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a real cut to EPS estimates.

It might be a surprise to learn that the consensus price target fell 12% to CN¥38.00, with the analysts clearly linking lower forecast earnings to the performance of the stock price.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Sailvan Times' past performance and to peers in the same industry. The analysts are definitely expecting Sailvan Times' growth to accelerate, with the forecast 28% annualised growth to the end of 2024 ranking favourably alongside historical growth of 14% 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 15% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Sailvan Times is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Sailvan Times. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Sailvan Times' future valuation.

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 Sailvan Times analysts - going out to 2025, and you can see them free on our platform here.

We also provide an overview of the Sailvan Times 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.