Shenzhou International Group Holdings Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

As you might know, Shenzhou International Group Holdings Limited (HKG:2313) just kicked off its latest full-year results with some very strong numbers. Results were good overall, with revenues beating analyst predictions by 3.0% to hit CN¥29b. Statutory earnings per share (EPS) came in at CN¥4.15, some 6.6% above whatthe analysts had expected. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the current consensus from Shenzhou International Group Holdings' 26 analysts is for revenues of CN¥31.7b in 2025. This would reflect a solid 11% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 5.0% to CN¥4.36. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥31.2b and earnings per share (EPS) of CN¥4.45 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

Check out our latest analysis for Shenzhou International Group Holdings

The average price target fell 6.2% to HK$83.36, with reduced earnings forecasts clearly tied to a lower valuation estimate. 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. The most optimistic Shenzhou International Group Holdings analyst has a price target of HK$110 per share, while the most pessimistic values it at HK$49.94. 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 clear from the latest estimates that Shenzhou International Group Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 11% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.1% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 14% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Shenzhou International Group Holdings is expected to grow slower than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Shenzhou International Group Holdings. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Shenzhou International Group Holdings' revenue is expected to perform worse 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 Shenzhou International Group Holdings' future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Shenzhou International Group Holdings going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Shenzhou International Group Holdings that we have uncovered.

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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.