Analysts Just Shaved Their Shenzhen Dynanonic Co., Ltd (SZSE:300769) Forecasts Dramatically

The analysts covering Shenzhen Dynanonic Co., Ltd (SZSE:300769) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon. The stock price has risen 7.4% to CN¥24.44 over the past week. We'd be curious to see if the downgrade is enough to reverse investor sentiment on the business.

Following the latest downgrade, the ten analysts covering Shenzhen Dynanonic provided consensus estimates of CN¥9.5b revenue in 2024, which would reflect a sizeable 24% decline on its sales over the past 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 36% to CN¥2.55. Yet before this consensus update, the analysts had been forecasting revenues of CN¥12b and losses of CN¥1.30 per share in 2024. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.

See our latest analysis for Shenzhen Dynanonic

The consensus price target fell 7.3% to CN¥33.57, implicitly signalling that lower earnings per share are a leading indicator for Shenzhen Dynanonic's valuation.

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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 42% by the end of 2024. This indicates a significant reduction from annual growth of 53% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 16% per year. It's pretty clear that Shenzhen Dynanonic's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts increased their loss per share estimates for this year. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Shenzhen Dynanonic'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 Dynanonic.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for Shenzhen Dynanonic going out to 2026, and you can see them free on our platform here.

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.