Stock Analysis

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

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SHSE:688639

The latest analyst coverage could presage a bad day for Anhui Huaheng Biotechnology Co., Ltd. (SHSE:688639), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.

Following the downgrade, the latest consensus from Anhui Huaheng Biotechnology's five analysts is for revenues of CN¥2.9b in 2025, which would reflect a huge 38% improvement in sales compared to the last 12 months. Per-share earnings are expected to leap 54% to CN¥2.01. Before this latest update, the analysts had been forecasting revenues of CN¥3.3b and earnings per share (EPS) of CN¥2.34 in 2025. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a real cut to earnings per share numbers as well.

See our latest analysis for Anhui Huaheng Biotechnology

SHSE:688639 Earnings and Revenue Growth December 20th 2024

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 period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 29% growth on an annualised basis. That is in line with its 33% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 16% per year. So although Anhui Huaheng Biotechnology 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. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. After a cut like that, investors could be forgiven for thinking analysts are a lot more bearish on Anhui Huaheng Biotechnology, and a few readers might choose to steer clear of the stock.

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 Anhui Huaheng Biotechnology's financials, such as concerns around earnings quality. For more information, you can click here to discover this and the 3 other flags 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.

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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.