JNBY Design Limited (HKG:3306) Released Earnings Last Week And Analysts Lifted Their Price Target To HK$20.32

JNBY Design Limited (HKG:3306) shareholders are probably feeling a little disappointed, since its shares fell 9.6% to HK$19.32 in the week after its latest annual results. Results were roughly in line with estimates, with revenues of CN¥5.5b and statutory earnings per share of CN¥1.70. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. 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 most recent consensus for JNBY Design from nine analysts is for revenues of CN¥6.00b in 2026. If met, it would imply a decent 8.1% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 102% to CN¥1.82. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥5.95b and earnings per share (EPS) of CN¥1.87 in 2026. 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.

View our latest analysis for JNBY Design

Despite cutting their earnings forecasts,the analysts have lifted their price target 5.7% to HK$20.32, suggesting that these impacts are not expected to weigh on the stock's value in the long term. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic JNBY Design analyst has a price target of HK$23.30 per share, while the most pessimistic values it at HK$17.00. 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. It's pretty clear that there is an expectation that JNBY Design's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 8.1% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 10% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than JNBY Design.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on JNBY Design. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple JNBY Design analysts - going out to 2028, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for JNBY Design (1 doesn't sit too well with us) 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.