Last week, you might have seen that Chongqing Zhifei Biological Products Co., Ltd. (SZSE:300122) released its quarterly result to the market. The early response was not positive, with shares down 9.5% to CN¥29.26 in the past week. It was a pretty bad result overall, with revenues coming in 65% lower than the analysts predicted. Statutory earnings correspondingly nosedived, with Chongqing Zhifei Biological Products reporting a loss of CN¥0.03 per share, where the analysts were expecting a profit. 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 Chongqing Zhifei Biological Products after the latest results.

After the latest results, the 13 analysts covering Chongqing Zhifei Biological Products are now predicting revenues of CN¥54.2b in 2025. If met, this would reflect a sizeable 49% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 160% to CN¥4.01. In the lead-up to this report, the analysts had been modelling revenues of CN¥54.7b and earnings per share (EPS) of CN¥4.10 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at CN¥36.39, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Chongqing Zhifei Biological Products analyst has a price target of CN¥52.00 per share, while the most pessimistic values it at CN¥25.06. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Chongqing Zhifei Biological Products' growth to accelerate, with the forecast 37% annualised growth to the end of 2025 ranking favourably alongside historical growth of 30% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 26% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Chongqing Zhifei Biological Products to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at CN¥36.39, with the latest estimates not enough to have an impact on their price targets.

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 Chongqing Zhifei Biological Products analysts - going out to 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 3 warning signs for Chongqing Zhifei Biological Products (of which 1 makes us a bit uncomfortable!) you should know about.

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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.