Shareholders in Yuexiu Transport Infrastructure Limited (HKG:1052) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.
Following the upgrade, the consensus from three analysts covering Yuexiu Transport Infrastructure is for revenues of CN¥2.6b in 2020, implying a concerning 23% decline in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing CN¥2.3b of revenue in 2020. It looks like there’s been a clear increase in optimism around Yuexiu Transport Infrastructure, given the decent improvement in revenue forecasts.
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. We would highlight that sales are expected to reverse, with the forecast 23% revenue decline a notable change from historical growth of 9.0% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 11% next year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining – Yuexiu Transport Infrastructure is expected to lag the wider industry.
The Bottom Line
The highlight for us was that analysts increased their revenue forecasts for Yuexiu Transport Infrastructure this year. They also expect company revenue to perform worse than the wider market. Seeing the dramatic upgrade to this year’s forecasts, it might be time to take another look at Yuexiu Transport Infrastructure.
Want to learn more? At least one of Yuexiu Transport Infrastructure’s three analysts has provided estimates out to 2022, which can be seen for free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.