Investors in Fujian Wanchen Biotechnology Group Co., Ltd. (SZSE:300972) had a good week, as its shares rose 9.7% to close at CN¥27.50 following the release of its full-year results. It was a moderately negative result overall - revenue fell 2.5% short of analyst estimates at CN¥9.3b, and statutory losses were in line with analyst expectations, at CN¥0.54 per share. This is an important time for investors, as they can track a company's performance in its report, look at what expert is 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 analyst latest (statutory) post-earnings forecasts for next year.
After the latest results, the sole analyst covering Fujian Wanchen Biotechnology Group are now predicting revenues of CN¥20.5b in 2024. If met, this would reflect a huge 120% improvement in revenue compared to the last 12 months. Fujian Wanchen Biotechnology Group is also expected to turn profitable, with statutory earnings of CN¥1.10 per share. Yet prior to the latest earnings, the analyst had been anticipated revenues of CN¥20.5b and earnings per share (EPS) of CN¥1.11 in 2024. So it's pretty clear that, although the analyst has updated their estimates, there's been no major change in expectations for the business following the latest results.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at CN¥28.61.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Fujian Wanchen Biotechnology Group's past performance and to peers in the same industry. The analyst is definitely expecting Fujian Wanchen Biotechnology Group's growth to accelerate, with the forecast 120% annualised growth to the end of 2024 ranking favourably alongside historical growth of 66% 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 13% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Fujian Wanchen Biotechnology Group to grow faster than 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 analyst holding their earnings forecasts steady, in line with previous estimates. 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¥28.61, with the latest estimates not enough to have an impact on their price target.
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. We have analyst estimates for Fujian Wanchen Biotechnology Group going out as far as 2026, and you can see them free on our platform here.
Before you take the next step you should know about the 1 warning sign for Fujian Wanchen Biotechnology Group that we have uncovered.
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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.