The analysts might have been a bit too bullish on Tasly Pharmaceutical Group Co., Ltd (SHSE:600535), given that the company fell short of expectations when it released its yearly results last week. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at CN¥8.7b, statutory earnings missed forecasts by 11%, coming in at just CN¥0.72 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Tasly Pharmaceutical Group after the latest results.

Taking into account the latest results, the consensus forecast from Tasly Pharmaceutical Group's seven analysts is for revenues of CN¥9.08b in 2024. This reflects a reasonable 4.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 23% to CN¥0.89. Before this earnings report, the analysts had been forecasting revenues of CN¥9.94b and earnings per share (EPS) of CN¥0.90 in 2024. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.

It will come as no surprise then, that the consensus price target fell 7.0% to CN¥13.88following these changes. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Tasly Pharmaceutical Group, with the most bullish analyst valuing it at CN¥19.20 and the most bearish at CN¥9.50 per share. 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. One thing stands out from these estimates, which is that Tasly Pharmaceutical Group is forecast to grow faster in the future than it has in the past, with revenues expected to display 4.7% annualised growth until the end of 2024. If achieved, this would be a much better result than the 22% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 14% per year. Although Tasly Pharmaceutical Group's revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. With that said, earnings are more important to the long-term value of the business. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 forecasts for Tasly Pharmaceutical Group 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 1 warning sign for Tasly Pharmaceutical Group 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.