Investors in Shandong Weigao Group Medical Polymer Company Limited (HKG:1066) had a good week, as its shares rose 6.5% to close at HK$4.77 following the release of its half-yearly results. Results look mixed - while revenue fell marginally short of analyst estimates at CN¥6.6b, statutory earnings were in line with expectations, at CN¥0.24 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
View our latest analysis for Shandong Weigao Group Medical Polymer
After the latest results, the eight analysts covering Shandong Weigao Group Medical Polymer are now predicting revenues of CN¥13.8b in 2024. If met, this would reflect an okay 6.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 12% to CN¥0.47. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥13.9b and earnings per share (EPS) of CN¥0.47 in 2024. 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.
With no major changes to earnings forecasts, the consensus price target fell 5.9% to HK$6.74, suggesting that the analysts might have previously been hoping for an earnings upgrade. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Shandong Weigao Group Medical Polymer at HK$8.13 per share, while the most bearish prices it at HK$5.12. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Shandong Weigao Group Medical Polymer's growth to accelerate, with the forecast 14% annualised growth to the end of 2024 ranking favourably alongside historical growth of 6.4% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 22% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Shandong Weigao Group Medical Polymer is expected to grow slower than the wider 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Shandong Weigao Group Medical Polymer's revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Shandong Weigao Group Medical Polymer's future valuation.
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 Shandong Weigao Group Medical Polymer going out to 2026, and you can see them free on our platform here..
You still need to take note of risks, for example - Shandong Weigao Group Medical Polymer has 1 warning sign we think 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.