As you might know, RemeGen Co., Ltd. (HKG:9995) recently reported its interim numbers. The results were positive, with revenue coming in at CN¥740m, beating analyst expectations by 4.6%. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Taking into account the latest results, the most recent consensus for RemeGen from 16 analysts is for revenues of CN¥1.68b in 2024. If met, it would imply a decent 20% increase on its revenue over the past 12 months. The loss per share is expected to ameliorate slightly, reducing to CN¥2.72. Yet prior to the latest earnings, the analysts had been forecasting revenues of CN¥1.64b and losses of CN¥2.36 per share in 2024. So it's pretty clear the analysts have mixed opinions on RemeGen even after this update; although they upped their revenue numbers, it came at the cost of a noticeable increase in per-share losses.

Spiting the revenue upgrading, the average price target fell 30% to HK$26.81, clearly signalling that higher forecast losses are a valuation concern. 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. There are some variant perceptions on RemeGen, with the most bullish analyst valuing it at HK$49.53 and the most bearish at HK$15.16 per share. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that RemeGen's rate of growth is expected to accelerate meaningfully, with the forecast 44% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 16% p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 24% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect RemeGen to grow faster than the wider industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at RemeGen. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for RemeGen going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - RemeGen has 2 warning signs 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.