Bearish: This Analyst Is Revising Their Zhejiang Jinggong Integration Technology Co., Ltd. (SZSE:002006) Revenue and EPS Prognostications

The latest analyst coverage could presage a bad day for Zhejiang Jinggong Integration Technology Co., Ltd. (SZSE:002006), with the covering analyst making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analyst has soured majorly on the business.

Following the downgrade, the most recent consensus for Zhejiang Jinggong Integration Technology from its one analyst is for revenues of CN¥2.6b in 2024 which, if met, would be a sizeable 53% increase on its sales over the past 12 months. Statutory earnings per share are presumed to jump 63% to CN¥0.68. Prior to this update, the analyst had been forecasting revenues of CN¥3.6b and earnings per share (EPS) of CN¥0.82 in 2024. Indeed, we can see that the analyst is a lot more bearish about Zhejiang Jinggong Integration Technology's prospects, administering a pretty serious reduction to revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Zhejiang Jinggong Integration Technology

The consensus price target fell 8.1% to CN¥17.00, 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 Zhejiang Jinggong Integration Technology's past performance and to peers in the same industry. It's clear from the latest estimates that Zhejiang Jinggong Integration Technology's rate of growth is expected to accelerate meaningfully, with the forecast 134% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 18% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 16% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Zhejiang Jinggong Integration Technology to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst cut their earnings per share estimates, expecting a clear decline in business conditions. While the analyst did downgrade their revenue estimates, these forecasts still imply revenues will perform better 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 Zhejiang Jinggong Integration Technology.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Zhejiang Jinggong Integration Technology going out as far as 2026, and you can see them free on our platform here.

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