Giant Biogene Holding Co., Ltd. Just Beat Revenue Estimates By 5.3%

Simply Wall St.
29 Mar

Giant Biogene Holding Co., Ltd. (HKG:2367) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat expectations with revenues of CN¥5.5b arriving 5.3% ahead of forecasts. Statutory earnings per share (EPS) were CN¥2.07, 3.3% ahead of estimates. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Giant Biogene Holding after the latest results.

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SEHK:2367 Earnings and Revenue Growth March 28th 2025

Taking into account the latest results, the current consensus from Giant Biogene Holding's 20 analysts is for revenues of CN¥7.20b in 2025. This would reflect a substantial 30% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 26% to CN¥2.55. In the lead-up to this report, the analysts had been modelling revenues of CN¥6.88b and earnings per share (EPS) of CN¥2.54 in 2025. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a small increase to to revenue forecasts.

See our latest analysis for Giant Biogene Holding

The analysts increased their price target 16% to HK$78.02, perhaps signalling that higher revenues are a strong leading indicator for Giant Biogene Holding's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Giant Biogene Holding, with the most bullish analyst valuing it at HK$85.00 and the most bearish at HK$56.58 per share. 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 Giant Biogene Holding 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. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 30% growth on an annualised basis. That is in line with its 29% annual growth 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 revenues grow 18% per year. So although Giant Biogene Holding is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

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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. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Giant Biogene Holding going out to 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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