Henan Shuanghui Investment & Development Co.,Ltd. (SZSE:000895) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at CN¥13b, statutory earnings missed forecasts by an incredible 26%, coming in at just CN¥0.29 per share. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
After the latest results, the 13 analysts covering Henan Shuanghui Investment & DevelopmentLtd are now predicting revenues of CN¥60.1b in 2024. If met, this would reflect a modest 5.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 11% to CN¥1.45. Before this earnings report, the analysts had been forecasting revenues of CN¥62.7b and earnings per share (EPS) of CN¥1.56 in 2024. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.
Despite the cuts to forecast earnings, there was no real change to the CN¥26.79 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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 Henan Shuanghui Investment & DevelopmentLtd, with the most bullish analyst valuing it at CN¥33.58 and the most bearish at CN¥19.00 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One thing stands out from these estimates, which is that Henan Shuanghui Investment & DevelopmentLtd is forecast to grow faster in the future than it has in the past, with revenues expected to display 10% annualised growth until the end of 2024. If achieved, this would be a much better result than the 0.9% annual decline 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 revenue grow 11% per year. So it looks like Henan Shuanghui Investment & DevelopmentLtd is expected to grow at about the same rate as 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. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. The consensus price target held steady at CN¥26.79, 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 Henan Shuanghui Investment & DevelopmentLtd. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Henan Shuanghui Investment & DevelopmentLtd going out to 2026, and you can see them free on our platform here..
Plus, you should also learn about the 1 warning sign we've spotted with Henan Shuanghui Investment & DevelopmentLtd .
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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.
