Shandong Weigao Group Medical Polymer Company Limited (HKG:1066) Just Reported, And Analysts Assigned A HK$6.74 Price Target

Investors in Shandong Weigao Group Medical Polymer Company Limited (HKG:1066) had a good week, as its shares rose 10.0% to close at HK$4.41 following the release of its half-yearly results. Revenues came in 3.1% below expectations, at CN¥6.6b. Statutory earnings per share were relatively better off, with a per-share profit of CN¥0.24 being roughly in line with analyst estimates. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Shandong Weigao Group Medical Polymer

Taking into account the latest results, the current consensus from Shandong Weigao Group Medical Polymer's eight analysts is for revenues of CN¥13.9b in 2024. This would reflect a reasonable 6.8% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to swell 13% to CN¥0.47. In the lead-up to this report, the analysts had been modelling revenues of CN¥14.1b and earnings per share (EPS) of CN¥0.48 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The consensus price target fell 5.9% to HK$6.74, suggesting that the analysts might have been a bit enthusiastic in their previous valuation - or they were expecting the company to provide stronger guidance in the semi-annual results. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Shandong Weigao Group Medical Polymer analyst has a price target of HK$8.13 per share, while the most pessimistic values it at HK$5.12. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Shandong Weigao Group Medical Polymer's growth to accelerate, with the forecast 14% annualised growth to the end of 2024 ranking favourably alongside historical growth of 6.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 21% annually. So it's clear that despite the acceleration in growth, Shandong Weigao Group Medical Polymer is expected to grow meaningfully slower than the industry average.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Shandong Weigao Group Medical Polymer 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 Shandong Weigao Group Medical Polymer 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.