Need To Know: This Analyst Just Made A Substantial Cut To Their Shenzhen Jinjia Group Co.,Ltd. (SZSE:002191) Estimates

One thing we could say about the covering analyst on Shenzhen Jinjia Group Co.,Ltd. (SZSE:002191) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analyst seeing grey clouds on the horizon.

Following the latest downgrade, Shenzhen Jinjia GroupLtd's solo analyst currently expects revenues in 2024 to be CN¥3.5b, approximately in line with the last 12 months. Per-share earnings are expected to soar 884% to CN¥0.14. Prior to this update, the analyst had been forecasting revenues of CN¥3.9b and earnings per share (EPS) of CN¥0.31 in 2024. Indeed, we can see that the analyst is a lot more bearish about Shenzhen Jinjia GroupLtd's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for Shenzhen Jinjia GroupLtd

It'll come as no surprise then, to learn that the analyst has cut their price target 9.1% to CN¥3.00.

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. We can infer from the latest estimates that forecasts expect a continuation of Shenzhen Jinjia GroupLtd'shistorical trends, as the 1.8% annualised revenue growth to the end of 2024 is roughly in line with the 1.5% annual revenue growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 14% annually. So it's pretty clear that Shenzhen Jinjia GroupLtd is expected to grow slower than similar companies in the same industry.

The Bottom Line

The biggest issue in the new estimates is that the analyst has reduced their earnings per share estimates, suggesting business headwinds lay ahead for Shenzhen Jinjia GroupLtd. Unfortunately the analyst also downgraded their revenue estimates, and industry data suggests that Shenzhen Jinjia GroupLtd's revenues are expected to grow slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Shenzhen Jinjia GroupLtd.

There might be good reason for analyst bearishness towards Shenzhen Jinjia GroupLtd, like the risk of cutting its dividend. For more information, you can click here to discover this and the 1 other flag 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.