These Analysts Think BOMESC Offshore Engineering Company Limited's (SHSE:603727) Sales Are Under Threat

The analysts covering BOMESC Offshore Engineering Company Limited (SHSE:603727) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

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Following the downgrade, the current consensus from BOMESC Offshore Engineering's two analysts is for revenues of CN¥3.0b in 2025 which - if met - would reflect a notable 12% increase on its sales over the past 12 months. Per-share earnings are expected to surge 115% to CN¥0.78. Prior to this update, the analysts had been forecasting revenues of CN¥3.3b and earnings per share (EPS) of CN¥0.83 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.

Check out our latest analysis for BOMESC Offshore Engineering

Despite the cuts to forecast earnings, there was no real change to the CN¥18.35 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting BOMESC Offshore Engineering's growth to accelerate, with the forecast 12% annualised growth to the end of 2025 ranking favourably alongside historical growth of 0.5% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that BOMESC Offshore Engineering is expected to grow at about the same rate as 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 BOMESC Offshore Engineering. 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. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on BOMESC Offshore Engineering after today.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for BOMESC Offshore Engineering going out as far as 2027, 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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