Revenue Downgrade: Here's What Analysts Forecast For Ming Yang Smart Energy Group Limited (SHSE:601615)

Market forces rained on the parade of Ming Yang Smart Energy Group Limited (SHSE:601615) shareholders today, when the analysts downgraded their forecasts for this year. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

After this downgrade, Ming Yang Smart Energy Group's seven analysts are now forecasting revenues of CN¥33b in 2024. This would be a meaningful 15% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to jump 403% to CN¥0.89. Prior to this update, the analysts had been forecasting revenues of CN¥37b and earnings per share (EPS) of CN¥0.98 in 2024. It looks like analyst sentiment has fallen somewhat in this update, with a substantial drop in revenue estimates and a minor downgrade to earnings per share numbers as well.

Check out our latest analysis for Ming Yang Smart Energy Group

Analysts made no major changes to their price target of CN¥10.37, suggesting the downgrades are not expected to have a long-term impact on Ming Yang Smart Energy Group's valuation.

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. It's clear from the latest estimates that Ming Yang Smart Energy Group's rate of growth is expected to accelerate meaningfully, with the forecast 32% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 19% 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 17% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Ming Yang Smart Energy Group is expected to grow much faster than its industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Ming Yang Smart Energy Group. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Ming Yang Smart Energy Group after today.

After a downgrade like this, it's pretty clear that previous forecasts were too optimistic. What's more, we've spotted several possible issues with Ming Yang Smart Energy Group's business, like concerns around earnings quality. Learn more, and discover the 1 other flag we've identified, for 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.