Shareholders might have noticed that Jiangsu Eastern Shenghong Co.,Ltd. (SZSE:000301) filed its quarterly result this time last week. The early response was not positive, with shares down 6.9% to CN¥7.94 in the past week. Revenues missed expectations, with revenue of CN¥35b falling 16% short of forecasts. Earnings correspondingly dipped, with Jiangsu Eastern ShenghongLtd reporting a statutory loss of CN¥0.26 per share, where the analysts were expecting a profit. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

After the latest results, the six analysts covering Jiangsu Eastern ShenghongLtd are now predicting revenues of CN¥164.1b in 2025. If met, this would reflect a notable 13% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Jiangsu Eastern ShenghongLtd forecast to report a statutory profit of CN¥0.78 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥164.6b and earnings per share (EPS) of CN¥0.80 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

The consensus price target held steady at CN¥10.72, 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. Currently, the most bullish analyst values Jiangsu Eastern ShenghongLtd at CN¥15.00 per share, while the most bearish prices it at CN¥7.70. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. We would highlight that Jiangsu Eastern ShenghongLtd's revenue growth is expected to slow, with the forecast 10% annualised growth rate until the end of 2025 being well below the historical 39% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 16% per year. Factoring in the forecast slowdown in growth, it seems obvious that Jiangsu Eastern ShenghongLtd is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Jiangsu Eastern ShenghongLtd. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Jiangsu Eastern ShenghongLtd's revenue is expected to perform worse than the wider industry. The consensus price target held steady at CN¥10.72, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Jiangsu Eastern ShenghongLtd going out to 2026, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 2 warning signs for Jiangsu Eastern ShenghongLtd 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.