News Flash: 3 Analysts Think Shan Xi Hua Yang Group New Energy Co.,Ltd. (SHSE:600348) Earnings Are Under Threat

Market forces rained on the parade of Shan Xi Hua Yang Group New Energy Co.,Ltd. (SHSE:600348) 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 latest downgrade, the current consensus, from the three analysts covering Shan Xi Hua Yang Group New EnergyLtd, is for revenues of CN¥26b in 2024, which would reflect a considerable 10% reduction in Shan Xi Hua Yang Group New EnergyLtd's sales over the past 12 months. Statutory earnings per share are anticipated to fall 16% to CN¥1.20 in the same period. Before this latest update, the analysts had been forecasting revenues of CN¥32b and earnings per share (EPS) of CN¥1.68 in 2024. Indeed, we can see that the analysts are a lot more bearish about Shan Xi Hua Yang Group New EnergyLtd's prospects, administering a pretty serious reduction to revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for Shan Xi Hua Yang Group New EnergyLtd

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 10% by the end of 2024. This indicates a significant reduction from annual growth of 0.6% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.9% per year. It's pretty clear that Shan Xi Hua Yang Group New EnergyLtd's revenues are expected to perform substantially worse than the wider industry.

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. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Given the serious cut to this year's outlook, it's clear that analysts have turned more bearish on Shan Xi Hua Yang Group New EnergyLtd, and we wouldn't blame shareholders for feeling a little more cautious themselves.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for Shan Xi Hua Yang Group New EnergyLtd going out to 2026, and you can see them free on our platform here.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.