It's been a good week for Guangdong Marubi Biotechnology Co., Ltd. (SHSE:603983) shareholders, because the company has just released its latest quarterly results, and the shares gained 5.4% to CN¥31.25. Revenues were in line with forecasts, at CN¥600m, although statutory earnings per share came in 14% below what the analysts expected, at CN¥0.16 per share. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the current consensus from Guangdong Marubi Biotechnology's 13 analysts is for revenues of CN¥3.61b in 2025. This would reflect a major 37% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 41% to CN¥1.14. In the lead-up to this report, the analysts had been modelling revenues of CN¥3.60b and earnings per share (EPS) of CN¥1.16 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.
The consensus price target held steady at CN¥29.47, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 Guangdong Marubi Biotechnology, with the most bullish analyst valuing it at CN¥34.29 and the most bearish at CN¥19.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
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. The analysts are definitely expecting Guangdong Marubi Biotechnology's growth to accelerate, with the forecast 28% annualised growth to the end of 2025 ranking favourably alongside historical growth of 7.3% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 16% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Guangdong Marubi Biotechnology is expected to grow much faster than its 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at CN¥29.47, with the latest estimates not enough to have an impact on their price targets.
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 Guangdong Marubi Biotechnology going out to 2026, and you can see them free on our platform here..
And what about risks? Every company has them, and we've spotted 2 warning signs for Guangdong Marubi Biotechnology you should know about.
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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.