Downgrade: Here's How Analysts See Hithink RoyalFlush Information Network Co., Ltd. (SZSE:300033) Performing In The Near Term

Today is shaping up negative for Hithink RoyalFlush Information Network Co., Ltd. (SZSE:300033) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.

Following the downgrade, the latest consensus from Hithink RoyalFlush Information Network's twelve analysts is for revenues of CN¥3.6b in 2024, which would reflect an okay 2.6% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to accumulate 3.8% to CN¥2.52. Before this latest update, the analysts had been forecasting revenues of CN¥4.0b and earnings per share (EPS) of CN¥3.06 in 2024. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a considerable drop in earnings per share numbers as well.

View our latest analysis for Hithink RoyalFlush Information Network

It'll come as no surprise then, to learn that the analysts have cut their price target 18% to CN¥120.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Hithink RoyalFlush Information Network's past performance and to peers in the same industry. We would highlight that Hithink RoyalFlush Information Network's revenue growth is expected to slow, with the forecast 5.2% annualised growth rate until the end of 2024 being well below the historical 15% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 10% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Hithink RoyalFlush Information Network.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Hithink RoyalFlush Information Network's revenues are expected to grow slower 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 Hithink RoyalFlush Information Network.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Hithink RoyalFlush Information Network analysts - going out to 2026, and you can see them free on our platform here.

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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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.