Shanghai Jin Jiang Capital Company Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
As you might know, Shanghai Jin Jiang Capital Company Limited (HKG:2006) recently reported its yearly numbers. Revenues were in line with forecasts, at CN¥21b, although statutory earnings per share came in 12% below what the analysts expected, at CN¥0.12 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for Shanghai Jin Jiang Capital
After the latest results, the consensus from Shanghai Jin Jiang Capital's four analysts is for revenues of CN¥18.0b in 2020, which would reflect a chunky 14% decline in sales compared to the last year of performance. Statutory earnings per share are forecast to dive 42% to CN¥0.07 in the same period. Before this earnings report, the analysts had been forecasting revenues of CN¥20.5b and earnings per share (EPS) of CN¥0.14 in 2020. Indeed, we can see that the analysts are a lot more bearish about Shanghai Jin Jiang Capital's prospects following the latest results, administering a real cut to revenue estimates and slashing their EPS estimates to boot.
The analysts made no major changes to their price target of CN¥1.66, suggesting the downgrades are not expected to have a long-term impact on Shanghai Jin Jiang Capital'svaluation. 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. Currently, the most bullish analyst values Shanghai Jin Jiang Capital at CN¥2.44 per share, while the most bearish prices it at CN¥1.28. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that sales are expected to reverse, with the forecast 14% revenue decline a notable change from historical growth of 15% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 12% annually for the foreseeable future. It's pretty clear that Shanghai Jin Jiang Capital's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates revenues are expected to perform worse than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at CN¥1.66, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Shanghai Jin Jiang Capital going out to 2022, and you can see them free on our platform here..
Before you take the next step you should know about the 3 warning signs for Shanghai Jin Jiang Capital (1 doesn't sit too well with us!) that we have uncovered.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
