Shanghai Milkground Food Tech Co., Ltd (SHSE:600882) last week reported its latest third-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Revenue came in at CN¥1.7b, beating expectations by a remarkable 28%, while statutory earnings per share (EPS) were CN¥0.02, missing estimates by an equally remarkable 67%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Shanghai Milkground Food Tech after the latest results.
Taking into account the latest results, the most recent consensus for Shanghai Milkground Food Tech from nine analysts is for revenues of CN¥5.11b in 2025. If met, it would imply a solid 12% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 72% to CN¥0.39. In the lead-up to this report, the analysts had been modelling revenues of CN¥5.10b and earnings per share (EPS) of CN¥0.39 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.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at CN¥16.39. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Shanghai Milkground Food Tech analyst has a price target of CN¥19.80 per share, while the most pessimistic values it at CN¥14.46. 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.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Shanghai Milkground Food Tech's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 9.3% growth on an annualised basis. This is compared to a historical growth rate of 15% over the past five years. Compare this to the 161 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 11% per year. So it's pretty clear that, while Shanghai Milkground Food Tech's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.
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.
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 Shanghai Milkground Food Tech 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 Milkground Food Tech 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.
