Analysts' Revenue Estimates For Anhui Jinhe Industrial Co.,Ltd. (SZSE:002597) Are Surging Higher

Celebrations may be in order for Anhui Jinhe Industrial Co.,Ltd. (SZSE:002597) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline. The stock price has risen 8.9% to CN¥24.61 over the past week, suggesting investors are becoming more optimistic. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

Following the upgrade, the latest consensus from Anhui Jinhe IndustrialLtd's eight analysts is for revenues of CN¥6.3b in 2024, which would reflect a meaningful 18% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to swell 11% to CN¥1.42. Prior to this update, the analysts had been forecasting revenues of CN¥5.3b and earnings per share (EPS) of CN¥1.41 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 Anhui Jinhe IndustrialLtd

It may not be a surprise to see that the analysts have reconfirmed their price target of CN¥26.95, implying that the uplift in sales is not expected to greatly contribute to Anhui Jinhe IndustrialLtd's valuation in the near term.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Anhui Jinhe IndustrialLtd's past performance and to peers in the same industry. The analysts are definitely expecting Anhui Jinhe IndustrialLtd's growth to accelerate, with the forecast 25% annualised growth to the end of 2024 ranking favourably alongside historical growth of 14% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 16% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Anhui Jinhe IndustrialLtd to grow faster than the wider 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. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Anhui Jinhe IndustrialLtd.

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 Anhui Jinhe IndustrialLtd 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 that insiders are buying.

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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.