These Analysts Just Made A Downgrade To Their Sinomine Resource Group Co., Ltd. (SZSE:002738) EPS Forecasts

One thing we could say about the analysts on Sinomine Resource Group Co., Ltd. (SZSE:002738) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business. At CN¥35.60, shares are up 9.7% in the past 7 days. Investors could be forgiven for changing their mind on the business following the downgrade; but it's not clear if the revised forecasts will lead to selling activity.

After this downgrade, Sinomine Resource Group's eight analysts are now forecasting revenues of CN¥8.2b in 2024. This would be a sizeable 62% improvement in sales compared to the last 12 months. Per-share earnings are expected to bounce 133% to CN¥4.43. Previously, the analysts had been modelling revenues of CN¥11b and earnings per share (EPS) of CN¥4.85 in 2024. Indeed, we can see that analyst sentiment has declined measurably after the new consensus came out, with a sizeable cut to revenue estimates and a minor downgrade to EPS estimates to boot.

Check out our latest analysis for Sinomine Resource Group

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Sinomine Resource Group's past performance and to peers in the same industry. It's clear from the latest estimates that Sinomine Resource Group's rate of growth is expected to accelerate meaningfully, with the forecast 91% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 44% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Sinomine Resource Group to grow faster 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 Sinomine Resource Group. 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 Sinomine Resource Group, and a few readers might choose to steer clear of the stock.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Sinomine Resource Group 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.