News Flash: 19 Analysts Think Shanghai Jahwa United Co., Ltd. (SHSE:600315) Earnings Are Under Threat

Today is shaping up negative for Shanghai Jahwa United Co., Ltd. (SHSE:600315) 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 the analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following this downgrade, Shanghai Jahwa United's 19 analysts are forecasting 2024 revenues to be CN¥6.3b, approximately in line with the last 12 months. Statutory earnings per share are supposed to decrease 4.0% to CN¥0.62 in the same period. Prior to this update, the analysts had been forecasting revenues of CN¥7.2b and earnings per share (EPS) of CN¥0.88 in 2024. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a large cut to earnings per share numbers as well.

Check out our latest analysis for Shanghai Jahwa United

The consensus price target fell 5.3% to CN¥18.95, 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. From these estimates it looks as though the analysts expect the years of declining sales to come to an end, given the flat revenue forecast out to 2024. That would be a definite improvement, given that the past five years have seen sales shrink 2.6% annually. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 16% per year. So it's pretty clear that, although revenues are improving, Shanghai Jahwa United is still expected to grow slower than the 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, and industry data suggests that Shanghai Jahwa United's revenues are expected to grow 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 Shanghai Jahwa United.

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 Shanghai Jahwa United 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.