Analysts Just Slashed Their Shanghai Bairun Investment Holding Group Co., Ltd. (SZSE:002568) EPS Numbers

Today is shaping up negative for Shanghai Bairun Investment Holding Group Co., Ltd. (SZSE:002568) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the downgrade, the latest consensus from Shanghai Bairun Investment Holding Group's eleven analysts is for revenues of CN¥3.7b in 2024, which would reflect a solid 12% improvement in sales compared to the last 12 months. Per-share earnings are expected to ascend 12% to CN¥0.85. Before this latest update, the analysts had been forecasting revenues of CN¥4.2b and earnings per share (EPS) of CN¥1.04 in 2024. Indeed, we can see that the analysts are a lot more bearish about Shanghai Bairun Investment Holding Group's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for Shanghai Bairun Investment Holding Group

Despite the cuts to forecast earnings, there was no real change to the CN¥28.32 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. We can infer from the latest estimates that forecasts expect a continuation of Shanghai Bairun Investment Holding Group'shistorical trends, as the 16% annualised revenue growth to the end of 2024 is roughly in line with the 19% annual revenue growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 13% annually. So although Shanghai Bairun Investment Holding Group is expected to maintain its revenue growth rate, it's definitely expected to grow faster 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. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. We're also surprised to see that the price target went unchanged. Still, deteriorating business conditions (assuming accurate forecasts!) can be a leading indicator for the stock price, so we wouldn't blame investors for being more cautious on Shanghai Bairun Investment Holding Group after the downgrade.

As you can see, the analysts clearly aren't bullish, and there might be good reason for that. We've identified some potential issues with Shanghai Bairun Investment Holding Group's financials, such as concerns around earnings quality. Learn more, and discover the 1 other flag we've identified, for 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 that insiders are buying.

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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.