Earnings Miss: China Resources Pharmaceutical Group Limited Missed EPS By 21% And Analysts Are Revising Their Forecasts

China Resources Pharmaceutical Group Limited (HKG:3320) just released its latest yearly report and things are not looking great. Results showed a clear earnings miss, with CN¥258b revenue coming in 2.1% lower than what the analystsexpected. Statutory earnings per share (EPS) of CN¥0.53 missed the mark badly, arriving some 21% below what was expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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 current consensus from China Resources Pharmaceutical Group's ten analysts is for revenues of CN¥276.1b in 2025. This would reflect a modest 7.2% increase on its revenue over the past 12 months. Per-share earnings are expected to grow 20% to CN¥0.63. Before this earnings report, the analysts had been forecasting revenues of CN¥285.7b and earnings per share (EPS) of CN¥0.74 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a substantial drop in earnings per share numbers.

View our latest analysis for China Resources Pharmaceutical Group

Despite the cuts to forecast earnings, there was no real change to the HK$7.05 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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 China Resources Pharmaceutical Group analyst has a price target of HK$8.80 per share, while the most pessimistic values it at HK$5.80. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await China Resources Pharmaceutical Group shareholders.

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. We can infer from the latest estimates that forecasts expect a continuation of China Resources Pharmaceutical Group'shistorical trends, as the 7.2% annualised revenue growth to the end of 2025 is roughly in line with the 8.9% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 8.7% annually. So it's pretty clear that China Resources Pharmaceutical Group is expected to grow slower than similar companies in the same industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for China Resources Pharmaceutical Group. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at HK$7.05, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for China Resources Pharmaceutical Group going out to 2027, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for China Resources Pharmaceutical Group 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.