Analysts Are Betting On Shandong Gold Mining Co., Ltd. (SHSE:600547) With A Big Upgrade This Week

Celebrations may be in order for Shandong Gold Mining Co., Ltd. (SHSE:600547) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that Shandong Gold Mining will make substantially more sales than they'd previously expected.

Following the latest upgrade, Shandong Gold Mining's eleven analysts currently expect revenues in 2024 to be CN¥79b, approximately in line with the last 12 months. Statutory earnings per share are presumed to bounce 84% to CN¥0.89. Previously, the analysts had been modelling revenues of CN¥69b and earnings per share (EPS) of CN¥0.89 in 2024. There's clearly been a surge in bullishness around the company's sales pipeline, even if there's no real change in earnings per share forecasts.

See our latest analysis for Shandong Gold Mining

Even though revenue forecasts increased, there was no change to the consensus price target of CN¥30.97, suggesting the analysts are focused on earnings as the driver of value creation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. For example, we noticed that Shandong Gold Mining's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 2.4% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 1.3% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 9.4% annually for the foreseeable future. So although Shandong Gold Mining's revenue growth is expected to improve, it is still expected to grow slower than the industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Shandong Gold Mining.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Shandong Gold Mining 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 backed by insiders.

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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.