Hymson Laser Technology Group Co.,Ltd. (SHSE:688559) Analysts Just Slashed This Year's Estimates

One thing we could say about the analysts on Hymson Laser Technology Group Co.,Ltd. (SHSE:688559) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business. Bidders are definitely seeing a different story, with the stock price of CN¥43.79 reflecting a 35% rise in the past week. With such a sharp increase, it seems brokers may have seen something that is not yet being priced in by the wider market.

After this downgrade, Hymson Laser Technology GroupLtd's two analysts are now forecasting revenues of CN¥5.5b in 2024. This would be a notable 10% improvement in sales compared to the last 12 months. Per-share earnings are expected to swell 13% to CN¥1.86. Previously, the analysts had been modelling revenues of CN¥8.9b and earnings per share (EPS) of CN¥5.58 in 2024. It looks like analyst sentiment has declined substantially, with a pretty serious reduction to revenue estimates and a pretty serious decline to earnings per share numbers as well.

View our latest analysis for Hymson Laser Technology GroupLtd

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Hymson Laser Technology GroupLtd's past performance and to peers in the same industry. We would highlight that Hymson Laser Technology GroupLtd's revenue growth is expected to slow, with the forecast 14% annualised growth rate until the end of 2024 being well below the historical 45% p.a. growth over the last three years. Compare this to the 479 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 17% per year. So it's pretty clear that, while Hymson Laser Technology GroupLtd's revenue growth is expected to slow, it's expected to grow roughly in line with the 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 Hymson Laser Technology GroupLtd. Lamentably, they also downgraded their sales forecasts, but the business is still expected to grow at roughly the same rate as the market itself. Given the serious cut to this year's outlook, it's clear that analysts have turned more bearish on Hymson Laser Technology GroupLtd, and we wouldn't blame shareholders for feeling a little more cautious themselves.

As you can see, the analysts clearly aren't bullish, and there might be good reason for that. We've identified some potential issues with Hymson Laser Technology GroupLtd's financials, such as concerns around earnings quality. For more information, you can click here to discover this and the 1 other flag we've identified.

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.

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