Investors in Tasly Pharmaceutical Group Co., Ltd (SHSE:600535) had a good week, as its shares rose 2.2% to close at CN¥14.09 following the release of its second-quarter results. Revenues CN¥2.3b disappointed slightly, at8.6% below what the analysts had predicted. Profits were a relative bright spot, with statutory per-share earnings of CN¥0.24 coming in 14% above what was anticipated. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Tasly Pharmaceutical Group after the latest results.
Following the latest results, Tasly Pharmaceutical Group's nine analysts are now forecasting revenues of CN¥9.11b in 2024. This would be a credible 5.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 16% to CN¥0.80. Before this earnings report, the analysts had been forecasting revenues of CN¥9.08b and earnings per share (EPS) of CN¥0.80 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.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at CN¥17.23. 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 Tasly Pharmaceutical Group, with the most bullish analyst valuing it at CN¥19.56 and the most bearish at CN¥15.30 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Tasly Pharmaceutical Group is an easy business to forecast or the the analysts are all using similar assumptions.
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. One thing stands out from these estimates, which is that Tasly Pharmaceutical Group is forecast to grow faster in the future than it has in the past, with revenues expected to display 11% annualised growth until the end of 2024. If achieved, this would be a much better result than the 21% 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 12% per year. So it looks like Tasly Pharmaceutical Group is expected to grow at about the same rate as the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Tasly Pharmaceutical Group going out to 2026, and you can see them free on our platform here..
Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Tasly Pharmaceutical Group that 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.