Giant Biogene Holding Co., Ltd. (HKG:2367) Just Reported Earnings, And Analysts Cut Their Target Price

Shareholders might have noticed that Giant Biogene Holding Co., Ltd. (HKG:2367) filed its interim result this time last week. The early response was not positive, with shares down 2.9% to HK$53.95 in the past week. Results were roughly in line with estimates, with revenues of CN¥3.1b and statutory earnings per share of CN¥2.07. 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 consensus forecast from Giant Biogene Holding's 21 analysts is for revenues of CN¥6.95b in 2025. This reflects a solid 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 9.4% to CN¥2.34. Before this earnings report, the analysts had been forecasting revenues of CN¥7.02b and earnings per share (EPS) of CN¥2.42 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

Check out our latest analysis for Giant Biogene Holding

It might be a surprise to learn that the consensus price target fell 5.2% to HK$73.86, with the analysts clearly linking lower forecast earnings to the performance of the stock price. 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. There are some variant perceptions on Giant Biogene Holding, with the most bullish analyst valuing it at HK$91.00 and the most bearish at HK$64.00 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. It's pretty clear that there is an expectation that Giant Biogene Holding's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 29% growth on an annualised basis. This is compared to a historical growth rate of 37% over the past year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 18% annually. So it's pretty clear that, while Giant Biogene Holding's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Giant Biogene Holding. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster 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. We have estimates - from multiple Giant Biogene Holding analysts - going out to 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.