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Results: Shanghai Pharmaceuticals Holding Co., Ltd Beat Earnings Expectations And Analysts Now Have New Forecasts

結果:shanghai pharmaceuticals holding社は業績予想を上回り、アナリストたちは新しい予測を立てました

Simply Wall St ·  2024/11/01 18:43

As you might know, Shanghai Pharmaceuticals Holding Co., Ltd (SHSE:601607) just kicked off its latest quarterly results with some very strong numbers. Results were good overall, with revenues beating analyst predictions by 2.6% to hit CN¥70b. Statutory earnings per share (EPS) came in at CN¥0.30, some 9.6% above whatthe analysts had expected. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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SHSE:601607 Earnings and Revenue Growth November 1st 2024

Following the latest results, Shanghai Pharmaceuticals Holding's eight analysts are now forecasting revenues of CN¥311.6b in 2025. This would be a notable 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 40% to CN¥1.52. Before this earnings report, the analysts had been forecasting revenues of CN¥309.7b and earnings per share (EPS) of CN¥1.51 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of CN¥21.60, suggesting that the company has met expectations in its recent result. 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. The most optimistic Shanghai Pharmaceuticals Holding analyst has a price target of CN¥24.90 per share, while the most pessimistic values it at CN¥13.60. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Shanghai Pharmaceuticals Holding's growth to accelerate, with the forecast 11% annualised growth to the end of 2025 ranking favourably alongside historical growth of 8.9% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 12% per year. Shanghai Pharmaceuticals Holding is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Shanghai Pharmaceuticals Holding. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Shanghai Pharmaceuticals Holding analysts - going out to 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 Shanghai Pharmaceuticals Holding 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.

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