Shanghai Chicmax Cosmetic Co., Ltd. Just Missed Earnings And Its Revenue Numbers Were Weaker Than Expected
It's been a mediocre week for Shanghai Chicmax Cosmetic Co., Ltd. (HKG:2145) shareholders, with the stock dropping 10% to HK$21.66 in the week since its latest interim results. Revenues came in 6.5% below expectations, at CN¥3.8b. Statutory earnings per share were relatively better off, with a per-share profit of CN¥2.77 being roughly in line with analyst estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
After the latest results, the ten analysts covering Shanghai Chicmax Cosmetic are now predicting revenues of CN¥10.6b in 2026. If met, this would reflect a decent 20% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 94% to CN¥3.35. In the lead-up to this report, the analysts had been modelling revenues of CN¥10.8b and earnings per share (EPS) of CN¥3.30 in 2026. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.
Check out our latest analysis for Shanghai Chicmax Cosmetic
The average price target was reduced 7.9% to HK$80.11, with the lower revenue forecasts indicating negative sentiment towards Shanghai Chicmax Cosmetic, even though earnings forecasts were unchanged. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Shanghai Chicmax Cosmetic at HK$99.67 per share, while the most bearish prices it at HK$36.50. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Shanghai Chicmax Cosmetic's rate of growth is expected to accelerate meaningfully, with the forecast 43% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 32% p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 14% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Shanghai Chicmax Cosmetic to grow faster than the wider industry.
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. They also downgraded Shanghai Chicmax Cosmetic's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. With that said, earnings are more important to the long-term value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Shanghai Chicmax Cosmetic'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. We have estimates - from multiple Shanghai Chicmax Cosmetic analysts - going out to 2028, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 1 warning sign for Shanghai Chicmax Cosmetic that you need to be mindful 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.