Yonghui Superstores Co., Ltd. (SHSE:601933) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat both earnings and revenue forecasts, with revenue of CN¥27b, some 5.3% above estimates, and statutory earnings per share (EPS) coming in at CN¥0.06, 151% ahead of expectations. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for Yonghui SuperstoresSHSE:601933 Earnings and Revenue Growth May 2nd 2022
Taking into account the latest results, the consensus forecast from Yonghui Superstores' 15 analysts is for revenues of CN¥97.3b in 2022, which would reflect an okay 5.8% improvement in sales compared to the last 12 months. Yonghui Superstores is also expected to turn profitable, with statutory earnings of CN¥0.035 per share. Before this earnings report, the analysts had been forecasting revenues of CN¥97.4b and earnings per share (EPS) of CN¥0.034 in 2022. 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¥4.67. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Yonghui Superstores analyst has a price target of CN¥7.70 per share, while the most pessimistic values it at CN¥3.09. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Yonghui Superstores' revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 7.8% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% per year. Factoring in the forecast slowdown in growth, it seems obvious that Yonghui Superstores is also expected to grow slower than other industry participants.
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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Yonghui Superstores' revenues are expected to perform worse than the wider industry. The consensus price target held steady at CN¥4.67, with the latest estimates not enough to have an impact on their price targets.
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 forecasts for Yonghui Superstores going out to 2024, and you can see them free on our platform here.
You can also see whether Yonghui Superstores is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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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.