Broker Revenue Forecasts For NORINCO International Cooperation Ltd. (SZSE:000065) Are Surging Higher

Shareholders in NORINCO International Cooperation Ltd. (SZSE:000065) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that NORINCO International Cooperation will make substantially more sales than they'd previously expected. The market seems to be pricing in some improvement in the business too, with the stock up 8.4% over the past week, closing at CN¥11.79. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

Following the upgrade, the most recent consensus for NORINCO International Cooperation from its six analysts is for revenues of CN¥25b in 2024 which, if met, would be a notable 16% increase on its sales over the past 12 months. Per-share earnings are expected to ascend 14% to CN¥1.05. Previously, the analysts had been modelling revenues of CN¥23b and earnings per share (EPS) of CN¥1.02 in 2024. The most recent forecasts are noticeably more optimistic, with a solid increase in revenue estimates and a lift to earnings per share as well.

Check out our latest analysis for NORINCO International Cooperation

Despite these upgrades, the analysts have not made any major changes to their price target of CN¥15.41, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 16% growth on an annualised basis. That is in line with its 14% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 19% annually. So although NORINCO International Cooperation is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at NORINCO International Cooperation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for NORINCO International Cooperation going out to 2026, and you can see them 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.