Analysts' Revenue Estimates For Yijiahe Technology Co., Ltd. (SHSE:603666) Are Surging Higher

Shareholders in Yijiahe Technology Co., Ltd. (SHSE:603666) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

After this upgrade, Yijiahe Technology's dual analysts are now forecasting revenues of CN¥710m in 2023. This would be a huge 54% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 81% to CN¥0.19 per share. However, before this estimates update, the consensus had been expecting revenues of CN¥590m and CN¥0.21 per share in losses. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.

Check out our latest analysis for Yijiahe Technology

There was no major change to the consensus price target of CN¥29.72, perhaps suggesting that the analysts remain concerned about ongoing losses despite the improved earnings and revenue outlook.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Yijiahe Technology's rate of growth is expected to accelerate meaningfully, with the forecast 137% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 7.7% 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 18% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Yijiahe Technology is expected to grow much faster than its industry.

The Bottom Line

The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Yijiahe Technology is moving incrementally towards profitability. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Yijiahe Technology.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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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.