Sinohealth Holdings Limited Just Recorded A 240% EPS Beat: Here's What Analysts Are Forecasting Next

As you might know, Sinohealth Holdings Limited (HKG:2361) just kicked off its latest full-year results with some very strong numbers. Sinohealth Holdings delivered a significant beat to revenue and earnings per share (EPS) expectations, with sales hitting CN¥357m, some 11% above indicated. Statutory EPS were CN¥0.14, an impressive 240% ahead of forecasts. Following the result, the analyst has 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on Sinohealth Holdings after the latest results.

View our latest analysis for Sinohealth Holdings

Taking into account the latest results, the consensus forecast from Sinohealth Holdings' single analyst is for revenues of CN¥468.5m in 2023, which would reflect a sizeable 31% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to reduce 2.8% to CN¥0.12 in the same period. Yet prior to the latest earnings, the analyst had been anticipated revenues of CN¥441.3m and earnings per share (EPS) of CN¥0.10 in 2023. There's been a pretty noticeable increase in sentiment, with the analyst upgrading revenues and making a decent improvement in earnings per share in particular.

It will come as no surprise to learn that the analyst has increased their price target for Sinohealth Holdings 15% to HK$3.00on the back of these upgrades.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Sinohealth Holdings' past performance and to peers in the same industry. It's clear from the latest estimates that Sinohealth Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 31% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 24% p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 17% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Sinohealth Holdings to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Sinohealth Holdings' earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

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 analyst estimates for Sinohealth Holdings going out as far as 2025, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Sinohealth Holdings 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.