It's been a good week for Shanghai Haohai Biological Technology Co., Ltd. (HKG:6826) shareholders, because the company has just released its latest interim results, and the shares gained 9.5% to HK$41.60. Revenue of CN¥1.3b beat expectations by an impressive 102%, while statutory earnings per share (EPS) were CN¥1.04, in line with estimates. 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.
Check out our latest analysis for Shanghai Haohai Biological Technology
Taking into account the latest results, the current consensus from Shanghai Haohai Biological Technology's dual analysts is for revenues of CN¥2.71b in 2023. This would reflect a notable 8.2% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 23% to CN¥2.51. In the lead-up to this report, the analysts had been modelling revenues of CN¥2.72b and earnings per share (EPS) of CN¥2.39 in 2023. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
The consensus price target rose 11% to HK$66.00, suggesting that higher earnings estimates flow through to the stock's valuation as well.
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 clear from the latest estimates that Shanghai Haohai Biological Technology's rate of growth is expected to accelerate meaningfully, with the forecast 17% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 11% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 35% annually. So it's clear that despite the acceleration in growth, Shanghai Haohai Biological Technology is expected to grow meaningfully slower than the industry average.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Shanghai Haohai Biological Technology following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Shanghai Haohai Biological Technology's revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Shanghai Haohai Biological Technology going out as far as 2025, and you can see them free on our platform here.
We also provide an overview of the Shanghai Haohai Biological Technology Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.