It's been a good week for Zhejiang Jasan Holding Group Co., Ltd. (SHSE:603558) shareholders, because the company has just released its latest yearly results, and the shares gained 6.7% to CN¥10.26. Revenues were CN¥2.3b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of CN¥0.74 were also better than expected, beating analyst predictions by 14%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Following the latest results, Zhejiang Jasan Holding Group's three analysts are now forecasting revenues of CN¥2.65b in 2024. This would be a notable 16% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 16% to CN¥0.86. Before this earnings report, the analysts had been forecasting revenues of CN¥2.67b and earnings per share (EPS) of CN¥0.78 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
There's been no major changes to the consensus price target of CN¥10.67, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Zhejiang Jasan Holding Group at CN¥11.99 per share, while the most bearish prices it at CN¥10.80. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Zhejiang Jasan Holding Group's growth to accelerate, with the forecast 16% annualised growth to the end of 2024 ranking favourably alongside historical growth of 8.8% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 16% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Zhejiang Jasan Holding Group is expected to grow at about the same rate as the wider industry.
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 Zhejiang Jasan Holding Group following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider 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.
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 Zhejiang Jasan Holding Group going out to 2025, and you can see them free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with Zhejiang Jasan Holding Group .
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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.