Shareholders might have noticed that Sinopharm Group Co. Ltd. (HKG:1099) filed its quarterly result this time last week. The early response was not positive, with shares down 4.8% to HK$19.52 in the past week. Results were roughly in line with estimates, with revenues of CN¥148b and statutory earnings per share of CN¥2.90. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Sinopharm Group after the latest results.

After the latest results, the 16 analysts covering Sinopharm Group are now predicting revenues of CN¥651.3b in 2025. If met, this would reflect a solid 9.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to climb 13% to CN¥2.98. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥659.5b and earnings per share (EPS) of CN¥3.08 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 HK$23.35, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. There are some variant perceptions on Sinopharm Group, with the most bullish analyst valuing it at HK$30.03 and the most bearish at HK$14.82 per share. 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 Sinopharm Group'shistorical trends, as the 7.8% annualised revenue growth to the end of 2025 is roughly in line with the 8.1% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 11% per year. So it's pretty clear that Sinopharm Group is expected to grow slower than similar companies in the same 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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. At Simply Wall St, we have a full range of analyst estimates for Sinopharm Group going out to 2026, and you can see them free on our platform here..

It might also be worth considering whether Sinopharm Group's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, 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.