These Analysts Think CIMC Vehicles (Group) Co., Ltd.'s (SZSE:301039) Sales Are Under Threat

Market forces rained on the parade of CIMC Vehicles (Group) Co., Ltd. (SZSE:301039) shareholders today, when the analysts downgraded their forecasts for this year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the downgrade, the current consensus from CIMC Vehicles (Group)'s five analysts is for revenues of CN¥24b in 2025 which - if met - would reflect a notable 14% increase on its sales over the past 12 months. Statutory earnings per share are presumed to shoot up 44% to CN¥0.83. Prior to this update, the analysts had been forecasting revenues of CN¥27b and earnings per share (EPS) of CN¥0.86 in 2025. Indeed, we can see that analyst sentiment has declined measurably after the new consensus came out, with a substantial drop in revenue estimates and a minor downgrade to EPS estimates to boot.

See our latest analysis for CIMC Vehicles (Group)

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One thing stands out from these estimates, which is that CIMC Vehicles (Group) is forecast to grow faster in the future than it has in the past, with revenues expected to display 14% annualised growth until the end of 2025. If achieved, this would be a much better result than the 2.1% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 16% per year. So while CIMC Vehicles (Group)'s revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall 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 CIMC Vehicles (Group). There was also a drop in their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of CIMC Vehicles (Group) going forwards.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple CIMC Vehicles (Group) analysts - going out to 2027, 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.