Shenzhou International Group Holdings Limited (HKG:2313) Just Reported, And Analysts Assigned A HK$57.02 Price Target
There's been a notable change in appetite for Shenzhou International Group Holdings Limited (HKG:2313) shares in the week since its half-year report, with the stock down 12% to HK$36.94. It looks like the results were a bit of a negative overall. While revenues of CN¥14b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 3.1% to hit CN¥1.27 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, Shenzhou International Group Holdings' 23 analysts currently expect revenues in 2026 to be CN¥30.5b, approximately in line with the last 12 months. Per-share earnings are expected to rise 2.6% to CN¥3.11. Before this earnings report, the analysts had been forecasting revenues of CN¥31.8b and earnings per share (EPS) of CN¥3.41 in 2026. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.
View our latest analysis for Shenzhou International Group Holdings
It'll come as no surprise then, to learn that the analysts have cut their price target 8.0% to HK$57.02. 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 Shenzhou International Group Holdings at HK$79.98 per share, while the most bearish prices it at HK$36.01. 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. It's pretty clear that there is an expectation that Shenzhou International Group Holdings' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 2.0% growth on an annualised basis. This is compared to a historical growth rate of 5.1% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.6% per year. Factoring in the forecast slowdown in growth, it seems obvious that Shenzhou International Group Holdings is also expected to grow slower than other industry participants.
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. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will 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 Shenzhou International Group Holdings' future valuation.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Shenzhou International Group Holdings going out to 2028, and you can see them free on our platform here.
Even so, be aware that Shenzhou International Group Holdings is showing 1 warning sign in our investment analysis , you should know about...
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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.