Analysts Are Upgrading Sichuan Kelun-Biotech Biopharmaceutical Co., Ltd. (HKG:6990) After Its Latest Results

It's been a good week for Sichuan Kelun-Biotech Biopharmaceutical Co., Ltd. (HKG:6990) shareholders, because the company has just released its latest yearly results, and the shares gained 9.0% to HK$288. The business exceeded expectations with revenue of CN¥1.9b coming in 8.9% ahead of forecasts. Statutory losses were CN¥1.21 a share, in line with what the analysts predicted. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Taking into account the latest results, the 18 analysts covering Sichuan Kelun-Biotech Biopharmaceutical provided consensus estimates of CN¥1.89b revenue in 2025, which would reflect a small 2.2% decline over the past 12 months. Per-share losses are expected to explode, reaching CN¥2.61 per share. Before this latest report, the consensus had been expecting revenues of CN¥1.74b and CN¥2.93 per share in losses. So it seems there's been a definite increase in optimism about Sichuan Kelun-Biotech Biopharmaceutical's future following the latest consensus numbers, with a cut to the loss per share forecasts in particular.

Check out our latest analysis for Sichuan Kelun-Biotech Biopharmaceutical

The consensus price target rose 18% to HK$270, with the analysts encouraged by the higher revenue and lower forecast losses for next year. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Sichuan Kelun-Biotech Biopharmaceutical analyst has a price target of HK$330 per share, while the most pessimistic values it at HK$187. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 2.2% by the end of 2025. This indicates a significant reduction from annual growth of 45% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 26% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Sichuan Kelun-Biotech Biopharmaceutical is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 Sichuan Kelun-Biotech Biopharmaceutical analysts - going out to 2027, and you can see them free on our platform here.

We also provide an overview of the Sichuan Kelun-Biotech Biopharmaceutical 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.