Anhui Huaheng Biotechnology Co., Ltd. (SHSE:688639) Analysts Just Cut Their EPS Forecasts Substantially

Market forces rained on the parade of Anhui Huaheng Biotechnology Co., Ltd. (SHSE:688639) shareholders today, when the analysts downgraded their 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 downgrade, the current consensus from Anhui Huaheng Biotechnology's seven analysts is for revenues of CN¥2.6b in 2024 which - if met - would reflect a huge 26% increase on its sales over the past 12 months. Per-share earnings are expected to accumulate 6.8% to CN¥1.91. Before this latest update, the analysts had been forecasting revenues of CN¥3.2b and earnings per share (EPS) of CN¥2.77 in 2024. Indeed, we can see that the analysts are a lot more bearish about Anhui Huaheng Biotechnology's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Anhui Huaheng Biotechnology

It'll come as no surprise then, to learn that the analysts have cut their price target 23% to CN¥71.99.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Anhui Huaheng Biotechnology's growth to accelerate, with the forecast 58% annualised growth to the end of 2024 ranking favourably alongside historical growth of 37% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 16% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Anhui Huaheng Biotechnology is expected to grow much faster than its 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 Anhui Huaheng Biotechnology. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Anhui Huaheng Biotechnology.

So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with Anhui Huaheng Biotechnology, including concerns around earnings quality. For more information, you can click here to discover this and the 1 other risk we've identified.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.