It's been a pretty great week for Jonjee Hi-Tech Industrial and Commercial Holding Co.,Ltd (SHSE:600872) shareholders, with its shares surging 11% to CN¥29.13 in the week since its latest first-quarter results. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at CN¥1.5b, statutory earnings beat expectations by a notable 21%, coming in at CN¥0.31 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. 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 22 analysts covering Jonjee Hi-Tech Industrial and Commercial HoldingLtd are now predicting revenues of CN¥5.76b in 2024. If met, this would reflect a decent 9.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to plummet 58% to CN¥0.97 in the same period. Before this earnings report, the analysts had been forecasting revenues of CN¥5.79b and earnings per share (EPS) of CN¥0.94 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¥35.27, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Jonjee Hi-Tech Industrial and Commercial HoldingLtd at CN¥47.00 per share, while the most bearish prices it at CN¥30.80. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
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. The analysts are definitely expecting Jonjee Hi-Tech Industrial and Commercial HoldingLtd's growth to accelerate, with the forecast 13% annualised growth to the end of 2024 ranking favourably alongside historical growth of 4.0% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Jonjee Hi-Tech Industrial and Commercial HoldingLtd 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 Jonjee Hi-Tech Industrial and Commercial HoldingLtd 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Jonjee Hi-Tech Industrial and Commercial HoldingLtd going out to 2026, and you can see them free on our platform here..
It is also worth noting that we have found 3 warning signs for Jonjee Hi-Tech Industrial and Commercial HoldingLtd (2 can't be ignored!) that you need to take into consideration.
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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.