Analyst Estimates: Here's What Brokers Think Of InnoCare Pharma Limited (HKG:9969) After Its Half-Yearly Report

As you might know, InnoCare Pharma Limited (HKG:9969) just kicked off its latest interim results with some very strong numbers. InnoCare Pharma outperformed estimates, with revenues of CN¥417m beating estimates by 15%. Statutory losses were CN¥0.16, 24% smaller thanthe analysts expected. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for InnoCare Pharma

Taking into account the latest results, the most recent consensus for InnoCare Pharma from seven analysts is for revenues of CN¥954.6m in 2024. If met, it would imply a huge 22% increase on its revenue over the past 12 months. Losses are forecast to balloon 29% to CN¥0.35 per share. Before this earnings announcement, the analysts had been modelling revenues of CN¥909.9m and losses of CN¥0.42 per share in 2024. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a notable improvement in loss per share in particular.

Despite these upgrades,the analysts have not made any major changes to their price target of HK$8.79, implying that their latest estimates don't have a long term impact on what they think the stock is worth. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic InnoCare Pharma analyst has a price target of HK$13.67 per share, while the most pessimistic values it at HK$5.90. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of InnoCare Pharma'shistorical trends, as the 49% annualised revenue growth to the end of 2024 is roughly in line with the 43% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 24% annually. So it's pretty clear that InnoCare Pharma is forecast to grow substantially faster than its industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at HK$8.79, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on InnoCare Pharma. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple InnoCare Pharma analysts - going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - InnoCare Pharma has 1 warning sign we think 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.