It's been a good week for Shandong Weigao Group Medical Polymer Company Limited (HKG:1066) shareholders, because the company has just released its latest half-year results, and the shares gained 10.0% to HK$4.41. Revenues came in 3.1% below expectations, at CN¥6.6b. Statutory earnings per share were relatively better off, with a per-share profit of CN¥0.24 being roughly in line with analyst estimates. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Following the latest results, Shandong Weigao Group Medical Polymer's eight analysts are now forecasting revenues of CN¥13.9b in 2024. This would be a credible 6.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to ascend 13% to CN¥0.47. Before this earnings report, the analysts had been forecasting revenues of CN¥14.1b and earnings per share (EPS) of CN¥0.48 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The consensus price target fell 5.9% to HK$6.74, suggesting that the analysts might have been a bit enthusiastic in their previous valuation - or they were expecting the company to provide stronger guidance in the semi-annual results. 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. Currently, the most bullish analyst values Shandong Weigao Group Medical Polymer at HK$8.13 per share, while the most bearish prices it at HK$5.12. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Shandong Weigao Group Medical Polymer's growth to accelerate, with the forecast 14% annualised growth to the end of 2024 ranking favourably alongside historical growth of 6.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 21% annually. So it's clear that despite the acceleration in growth, Shandong Weigao Group Medical Polymer is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Shandong Weigao Group Medical Polymer's revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Shandong Weigao Group Medical Polymer's future valuation.

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 estimates - from multiple Shandong Weigao Group Medical Polymer 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 - Shandong Weigao Group Medical Polymer 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.