News Flash: 9 Analysts Think Ginlong Technologies Co., Ltd. (SZSE:300763) Earnings Are Under Threat

Market forces rained on the parade of Ginlong Technologies Co., Ltd. (SZSE:300763) shareholders today, when the analysts downgraded their forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.

Following the downgrade, the latest consensus from Ginlong Technologies' nine analysts is for revenues of CN¥7.1b in 2024, which would reflect a major 21% improvement in sales compared to the last 12 months. Per-share earnings are expected to surge 85% to CN¥2.20. Before this latest update, the analysts had been forecasting revenues of CN¥8.2b and earnings per share (EPS) of CN¥3.14 in 2024. Indeed, we can see that the analysts are a lot more bearish about Ginlong Technologies' prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Ginlong Technologies

It'll come as no surprise then, to learn that the analysts have cut their price target 10.0% to CN¥61.76.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Ginlong Technologies' revenue growth is expected to slow, with the forecast 29% annualised growth rate until the end of 2024 being well below the historical 38% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 18% per year. Even after the forecast slowdown in growth, it seems obvious that Ginlong Technologies is also expected to grow faster than the wider 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 Ginlong Technologies. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Ginlong Technologies.

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 Ginlong Technologies' financials, such as dilutive stock issuance over the past year. For more information, you can click here to discover this and the 2 other risks we've identified.

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.