Shanghai International Port (Group) Co., Ltd. Just Recorded A 5.0% Revenue Beat: Here's What Analysts Think

Investors in Shanghai International Port (Group) Co., Ltd. (SHSE:600018) had a good week, as its shares rose 3.4% to close at CN¥5.47 following the release of its yearly results. It was a pretty mixed result, with revenues beating expectations to hit CN¥38b. Statutory earnings fell 4.9% short of analyst forecasts, reaching CN¥0.57 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Shanghai International Port (Group)

Taking into account the latest results, the most recent consensus for Shanghai International Port (Group) from four analysts is for revenues of CN¥38.9b in 2024. If met, it would imply a satisfactory 3.5% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 5.3% to CN¥0.60. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥36.6b and earnings per share (EPS) of CN¥0.59 in 2024. There doesn't appear to have been a major change in sentiment following the results, other than the slight bump in revenue estimates.

It may not be a surprise to see thatthe analysts have reconfirmed their price target of CN¥4.97, implying that the uplift in revenue is not expected to greatly contribute to Shanghai International Port (Group)'s valuation in the near term. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Shanghai International Port (Group), with the most bullish analyst valuing it at CN¥6.30 and the most bearish at CN¥4.30 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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 Shanghai International Port (Group)'s growth to accelerate, with the forecast 3.5% annualised growth to the end of 2024 ranking favourably alongside historical growth of 0.02% 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 9.5% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Shanghai International Port (Group) is expected to grow slower than the wider 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. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. The consensus price target held steady at CN¥4.97, 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 forecasts for Shanghai International Port (Group) going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Shanghai International Port (Group) that you should be aware of.

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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.