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Downgrade: Here's How Analysts See Pingdingshan Tianan Coal. Mining Co., Ltd. (SHSE:601666) Performing In The Near Term
The analysts covering Pingdingshan Tianan Coal. Mining Co., Ltd. (SHSE:601666) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.
Following the latest downgrade, the six analysts covering Pingdingshan Tianan Coal. Mining provided consensus estimates of CN¥28b revenue in 2025, which would reflect a chunky 8.2% decline on its sales over the past 12 months. Statutory earnings per share are supposed to plummet 46% to CN¥0.53 in the same period. Previously, the analysts had been modelling revenues of CN¥32b and earnings per share (EPS) of CN¥1.24 in 2025. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a large cut to earnings per share numbers as well.
View our latest analysis for Pingdingshan Tianan Coal. Mining
The consensus price target fell 18% to CN¥10.27, with the weaker earnings outlook clearly leading analyst valuation estimates.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 8.2% by the end of 2025. This indicates a significant reduction from annual growth of 8.0% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 5.5% annually for the foreseeable future. It's pretty clear that Pingdingshan Tianan Coal. Mining'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. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Pingdingshan Tianan Coal. Mining.
A high debt burden combined with a downgrade of this magnitude always gives us some reason for concern, especially if these forecasts are just the first sign of a business downturn. You can learn more about our debt analysis for free on our platform here.
We also provide an overview of the Pingdingshan Tianan Coal. Mining Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.
About SHSE:601666
Pingdingshan Tianan Coal. Mining
Pingdingshan Tianan Coal. Mining Co., Ltd.
Undervalued with adequate balance sheet and pays a dividend.
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