Earnings Update: Shanghai REFIRE Group Limited (HKG:2570) Just Reported Its Annual Results And Analysts Are Updating Their Forecasts

As you might know, Shanghai REFIRE Group Limited (HKG:2570) last week released its latest yearly, and things did not turn out so great for shareholders. Revenues missed expectations somewhat, coming in at CN¥595m and leading to a corresponding blowout in statutory losses. The loss per share was CN¥6.98, some 15% larger than the analysts forecast. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Shanghai REFIRE Group after the latest results.

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Taking into account the latest results, the consensus forecast from Shanghai REFIRE Group's three analysts is for revenues of CN¥837.0m in 2026. This reflects a substantial 41% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 31% to CN¥4.47. Before this earnings announcement, the analysts had been modelling revenues of CN¥855.3m and losses of CN¥4.45 per share in 2026.

View our latest analysis for Shanghai REFIRE Group

There was no real change to the average price target of HK$83.77, suggesting that the revisions to revenue estimates are not expected to have a long-term impact on Shanghai REFIRE Group's valuation. 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. The most optimistic Shanghai REFIRE Group analyst has a price target of HK$86.05 per share, while the most pessimistic values it at HK$80.08. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Shanghai REFIRE Group is an easy business to forecast or the the analysts are all using similar assumptions.

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 clear from the latest estimates that Shanghai REFIRE Group's rate of growth is expected to accelerate meaningfully, with the forecast 41% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 1.8% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 12% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Shanghai REFIRE Group is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target held steady at HK$83.77, with the latest estimates not enough to have an impact on their price targets.

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 Shanghai REFIRE Group 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 2 warning signs for Shanghai REFIRE Group 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.