China Shineway Pharmaceutical Group Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

The yearly results for China Shineway Pharmaceutical Group Limited (HKG:2877) were released last week, making it a good time to revisit its performance. Revenues were in line with forecasts, at CN¥3.2b, although statutory earnings per share came in 15% below what the analysts expected, at CN¥0.74 per share. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for China Shineway Pharmaceutical Group

Taking into account the latest results, the most recent consensus for China Shineway Pharmaceutical Group from three analysts is for revenues of CN¥3.69b in 2022 which, if met, would be a decent 14% increase on its sales over the past 12 months. Statutory earnings per share are predicted to jump 26% to CN¥0.93. Before this earnings report, the analysts had been forecasting revenues of CN¥3.69b and earnings per share (EPS) of CN¥0.93 in 2022. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at HK$9.18. 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 China Shineway Pharmaceutical Group, with the most bullish analyst valuing it at HK$10.03 and the most bearish at HK$7.90 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. The analysts are definitely expecting China Shineway Pharmaceutical Group's growth to accelerate, with the forecast 14% annualised growth to the end of 2022 ranking favourably alongside historical growth of 9.7% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. China Shineway Pharmaceutical Group is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

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. Happily, there were no real changes to sales forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 China Shineway Pharmaceutical Group analysts - going out to 2023, and you can see them free on our platform here.

Even so, be aware that China Shineway Pharmaceutical Group is showing 1 warning sign in our investment analysis , you should know about...

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.