Shandong Weigao Group Medical Polymer Company Limited (HKG:1066) Just Reported Half-Year Earnings: Have Analysts Changed Their Mind On The Stock?
Shareholders might have noticed that Shandong Weigao Group Medical Polymer Company Limited (HKG:1066) filed its half-year result this time last week. The early response was not positive, with shares down 7.1% to HK$3.27 in the past week. Shandong Weigao Group Medical Polymer reported in line with analyst predictions, delivering revenues of CN¥6.8b and statutory earnings per share of CN¥0.35, suggesting the business is executing well and in line with its plan. 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.
Following last week's earnings report, Shandong Weigao Group Medical Polymer's ten analysts are forecasting 2026 revenues to be CN¥13.8b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be CN¥0.30, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥14.0b and earnings per share (EPS) of CN¥0.35 in 2026. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a real cut to EPS estimates.
View our latest analysis for Shandong Weigao Group Medical Polymer
It might be a surprise to learn that the consensus price target was broadly unchanged at HK$5.55, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Shandong Weigao Group Medical Polymer, with the most bullish analyst valuing it at HK$8.17 and the most bearish at HK$3.86 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Shandong Weigao Group Medical Polymer is forecast to grow faster in the future than it has in the past, with revenues expected to display 3.0% annualised growth until the end of 2026. If achieved, this would be a much better result than the 0.1% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 27% per year. So although Shandong Weigao Group Medical Polymer's revenue growth is expected to improve, it is still expected to grow slower than the 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. 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 held steady at HK$5.55, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Shandong Weigao Group Medical Polymer analysts - 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 Shandong Weigao Group Medical Polymer that you should be aware of.
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