Analysts Just Made A Major Revision To Their Ming Yang Smart Energy Group Limited (SHSE:601615) Revenue Forecasts

One thing we could say about the analysts on Ming Yang Smart Energy Group Limited (SHSE:601615) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

After the downgrade, the six analysts covering Ming Yang Smart Energy Group are now predicting revenues of CN¥37b in 2024. If met, this would reflect a substantial 24% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to leap 132% to CN¥0.98. Prior to this update, the analysts had been forecasting revenues of CN¥42b and earnings per share (EPS) of CN¥0.98 in 2024. Indeed we can see that the consensus opinion has undergone some fundamental changes following the recent consensus updates, with a substantial drop in revenues and some minor tweaks to earnings numbers.

Check out our latest analysis for Ming Yang Smart Energy Group

It will come as no surprise then, that the consensus price target fell 30% to CN¥10.71 following these changes.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Ming Yang Smart Energy Group's past performance and to peers in the same industry. The analysts are definitely expecting Ming Yang Smart Energy Group's growth to accelerate, with the forecast 33% annualised growth to the end of 2024 ranking favourably alongside historical growth of 22% per annum 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 16% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Ming Yang Smart Energy Group to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Given the stark change in sentiment, we'd understand if investors became more cautious on Ming Yang Smart Energy Group after today.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Ming Yang Smart Energy Group going out to 2026, and you can see them free on our platform here.

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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.

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