It's been a pretty great week for Shandong Weigao Group Medical Polymer Company Limited (HKG:1066) shareholders, with its shares surging 15% to HK$5.99 in the week since its latest annual results. Results look mixed - while revenue fell marginally short of analyst estimates at CN¥13b, statutory earnings were in line with expectations, at CN¥0.46 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the current consensus from Shandong Weigao Group Medical Polymer's eight analysts is for revenues of CN¥14.3b in 2025. This would reflect a decent 9.3% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to swell 13% to CN¥0.51. In the lead-up to this report, the analysts had been modelling revenues of CN¥14.5b and earnings per share (EPS) of CN¥0.50 in 2025. 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.
View our latest analysis for Shandong Weigao Group Medical Polymer
There were no changes to revenue or earnings estimates or the price target of HK$6.41, suggesting that the company has met expectations in its recent result. 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. There are some variant perceptions on Shandong Weigao Group Medical Polymer, with the most bullish analyst valuing it at HK$8.00 and the most bearish at HK$5.19 per share. 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.
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 Shandong Weigao Group Medical Polymer's rate of growth is expected to accelerate meaningfully, with the forecast 9.3% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 25% annually. So it's clear that despite the acceleration in growth, Shandong Weigao Group Medical Polymer is expected to grow meaningfully slower than the industry average.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at HK$6.41, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Shandong Weigao Group Medical Polymer. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Shandong Weigao Group Medical Polymer going out to 2027, and you can see them free on our platform here..
Plus, you should also learn about the 1 warning sign we've spotted with Shandong Weigao Group Medical Polymer .
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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.