Anhui Honglu Steel Construction(Group) CO., LTD (SZSE:002541) Analysts Just Slashed This Year's Estimates

Today is shaping up negative for Anhui Honglu Steel Construction(Group) CO., LTD (SZSE:002541) 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, Anhui Honglu Steel Construction(Group)'s twelve analysts are forecasting 2024 revenues to be CN¥23b, approximately in line with the last 12 months. Statutory earnings per share are expected to be CN¥1.50, roughly flat on the last 12 months. Previously, the analysts had been modelling revenues of CN¥26b and earnings per share (EPS) of CN¥1.86 in 2024. Indeed, we can see that the analysts are a lot more bearish about Anhui Honglu Steel Construction(Group)'s prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for Anhui Honglu Steel Construction(Group)

It'll come as no surprise then, to learn that the analysts have cut their price target 15% to CN¥19.87.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Anhui Honglu Steel Construction(Group)'s past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with a forecast 0.02% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 18% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 9.4% annually for the foreseeable future. It's pretty clear that Anhui Honglu Steel Construction(Group)'s revenues are expected to perform substantially worse than the wider 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 Honglu Steel Construction(Group). Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Anhui Honglu Steel Construction(Group) analysts - going out to 2026, and you can see them free on our platform here.

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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.