Shin Zu Shing Co., Ltd. Just Recorded A 14% Revenue Beat: Here's What Analysts Think

It's been a good week for Shin Zu Shing Co., Ltd. (TWSE:3376) shareholders, because the company has just released its latest quarterly results, and the shares gained 4.3% to NT$183. It was a mildly positive result, with revenues exceeding expectations at NT$3.7b, while statutory earnings per share (EPS) of NT$1.76 were in line with analyst forecasts. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Shin Zu Shing

Taking into account the latest results, the most recent consensus for Shin Zu Shing from four analysts is for revenues of NT$16.1b in 2025. If met, it would imply a substantial 23% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 34% to NT$8.51. Yet prior to the latest earnings, the analysts had been anticipated revenues of NT$16.0b and earnings per share (EPS) of NT$8.41 in 2025. 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.

There were no changes to revenue or earnings estimates or the price target of NT$244, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Shin Zu Shing, with the most bullish analyst valuing it at NT$300 and the most bearish at NT$190 per share. 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.

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. One thing stands out from these estimates, which is that Shin Zu Shing is forecast to grow faster in the future than it has in the past, with revenues expected to display 18% annualised growth until the end of 2025. If achieved, this would be a much better result than the 3.9% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 14% annually. So it looks like Shin Zu Shing is expected to grow faster than its competitors, at least for a while.

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 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Shin Zu Shing going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 3 warning signs for Shin Zu Shing 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.