Zhuzhou Kibing Group Co.,Ltd (SHSE:601636) Analysts Just Slashed This Year's Estimates

One thing we could say about the analysts on Zhuzhou Kibing Group Co.,Ltd (SHSE:601636) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.

Following this downgrade, Zhuzhou Kibing GroupLtd's ten analysts are forecasting 2024 revenues to be CN¥16b, approximately in line with the last 12 months. Statutory earnings per share are supposed to crater 51% to CN¥0.39 in the same period. Prior to this update, the analysts had been forecasting revenues of CN¥20b and earnings per share (EPS) of CN¥0.73 in 2024. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a pretty serious decline to earnings per share numbers as well.

View our latest analysis for Zhuzhou Kibing GroupLtd

The consensus price target fell 12% to CN¥8.02, with the weaker earnings outlook clearly leading analyst valuation estimates.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Zhuzhou Kibing GroupLtd's past performance and to peers in the same industry. We would highlight that Zhuzhou Kibing GroupLtd's revenue growth is expected to slow, with the forecast 1.0% annualised growth rate until the end of 2024 being well below the historical 13% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 15% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Zhuzhou Kibing GroupLtd.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Zhuzhou Kibing GroupLtd's revenues are expected to grow slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Zhuzhou Kibing GroupLtd.

There might be good reason for analyst bearishness towards Zhuzhou Kibing GroupLtd, like concerns around earnings quality. Learn more, and discover the 1 other concern we've identified, 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 downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.