As you might know, Qianhe Condiment and Food Co., Ltd. (SHSE:603027) last week released its latest third-quarter, and things did not turn out so great for shareholders. It looks like quite a negative result overall, with both revenues and earnings falling well short of analyst predictions. Revenues of CN¥699m missed by 14%, and statutory earnings per share of CN¥0.098 fell short of forecasts by 24%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Qianhe Condiment and Food after the latest results.
Taking into account the latest results, the consensus forecast from Qianhe Condiment and Food's nine analysts is for revenues of CN¥3.67b in 2025. This reflects a decent 16% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 23% to CN¥0.59. Yet prior to the latest earnings, the analysts had been anticipated revenues of CN¥3.78b and earnings per share (EPS) of CN¥0.62 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.
The consensus price target fell 8.5% to CN¥13.42, with the weaker earnings outlook clearly leading valuation estimates. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Qianhe Condiment and Food at CN¥16.35 per share, while the most bearish prices it at CN¥9.10. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Qianhe Condiment and Food shareholders.
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 Qianhe Condiment and Food's revenue growth is expected to slow, with the forecast 13% annualised growth rate until the end of 2025 being well below the historical 20% p.a. growth over the last five years. Compare this to the 161 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 11% per year. So it's pretty clear that, while Qianhe Condiment and Food's revenue growth is expected to slow, it's expected to grow roughly in line with 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. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Qianhe Condiment and Food's future valuation.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Qianhe Condiment and Food going out to 2026, and you can see them free on our platform here..
Plus, you should also learn about the 1 warning sign we've spotted with Qianhe Condiment and Food .
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
