Some Analysts Just Cut Their Beijing SinoHytec Co., Ltd. (SHSE:688339) Estimates

Market forces rained on the parade of Beijing SinoHytec Co., Ltd. (SHSE:688339) shareholders today, when the analysts downgraded their forecasts for this year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

After the downgrade, the six analysts covering Beijing SinoHytec are now predicting revenues of CN¥1.4b in 2024. If met, this would reflect a substantial 71% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of CN¥1.5b in 2024. The consensus view seems to have become more pessimistic on Beijing SinoHytec, noting the substantial drop in revenue estimates in this update.

Check out our latest analysis for Beijing SinoHytec

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Beijing SinoHytec's rate of growth is expected to accelerate meaningfully, with the forecast 71% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 13% 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 19% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Beijing SinoHytec to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They're also forecasting more rapid revenue growth than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Beijing SinoHytec after today.

Want more information? We have estimates for Beijing SinoHytec from its six analysts out until 2026, and you can see them 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.