Hansoh Pharmaceutical Group Company Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

It's been a good week for Hansoh Pharmaceutical Group Company Limited (HKG:3692) shareholders, because the company has just released its latest full-year results, and the shares gained 3.6% to HK$17.40. It looks like a credible result overall - although revenues of CN¥10b were in line with what the analysts predicted, Hansoh Pharmaceutical Group surprised by delivering a statutory profit of CN¥0.55 per share, a notable 19% above expectations. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Hansoh Pharmaceutical Group after the latest results.

See our latest analysis for Hansoh Pharmaceutical Group

Taking into account the latest results, the most recent consensus for Hansoh Pharmaceutical Group from 22 analysts is for revenues of CN¥11.8b in 2024. If met, it would imply a notable 17% increase on its revenue over the past 12 months. Per-share earnings are expected to grow 16% to CN¥0.64. In the lead-up to this report, the analysts had been modelling revenues of CN¥11.8b and earnings per share (EPS) of CN¥0.59 in 2024. So the consensus seems to have become somewhat more optimistic on Hansoh Pharmaceutical Group's earnings potential following these results.

The consensus price target was unchanged at HK$18.95, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Hansoh Pharmaceutical Group at HK$27.95 per share, while the most bearish prices it at HK$14.78. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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 Hansoh Pharmaceutical Group's growth to accelerate, with the forecast 17% annualised growth to the end of 2024 ranking favourably alongside historical growth of 4.5% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 10.0% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Hansoh Pharmaceutical Group is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Hansoh Pharmaceutical Group's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider 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.

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 forecasts for Hansoh Pharmaceutical Group going out to 2026, and you can see them free on our platform here.

We also provide an overview of the Hansoh Pharmaceutical Group Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.