Earnings Miss: China Resources Pharmaceutical Group Limited Missed EPS By 12% And Analysts Are Revising Their Forecasts
As you might know, China Resources Pharmaceutical Group Limited (HKG:3320) last week released its latest half-year, and things did not turn out so great for shareholders. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at CN¥136b, statutory earnings missed forecasts by 12%, coming in at just CN¥0.35 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the consensus forecast from China Resources Pharmaceutical Group's ten analysts is for revenues of CN¥277.7b in 2026. This reflects a satisfactory 2.1% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be CN¥0.66, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of CN¥280.4b and earnings per share (EPS) of CN¥0.68 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
See our latest analysis for China Resources Pharmaceutical Group
It will come as no surprise then, to learn that the consensus price target is largely unchanged at HK$6.55. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values China Resources Pharmaceutical Group at HK$7.52 per share, while the most bearish prices it at HK$5.70. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
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. We would highlight that China Resources Pharmaceutical Group's revenue growth is expected to slow, with the forecast 4.1% annualised growth rate until the end of 2026 being well below the historical 7.6% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.7% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than China Resources Pharmaceutical Group.
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 China Resources Pharmaceutical Group's revenue is expected to perform worse than 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.
With that in mind, we wouldn't be too quick to come to a conclusion on China Resources Pharmaceutical Group. 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 China Resources Pharmaceutical Group going out to 2028, and you can see them free on our platform here..
However, before you get too enthused, we've discovered 2 warning signs for China Resources Pharmaceutical Group that 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.