Analysts Just Made A Major Revision To Their Zhejiang Huace Film & TV Co., Ltd. (SZSE:300133) Revenue Forecasts

Market forces rained on the parade of Zhejiang Huace Film & TV Co., Ltd. (SZSE:300133) shareholders today, when the analysts downgraded their forecasts for this year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative. Surprisingly the share price has been buoyant, rising 26% to CN¥8.51 in the past 7 days. It will be interesting to see if the downgrade has an impact on buying demand for the company's shares.

Following the downgrade, the most recent consensus for Zhejiang Huace Film & TV from its seven analysts is for revenues of CN¥3.1b in 2024 which, if met, would be a substantial 35% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing CN¥3.9b of revenue in 2024. The consensus view seems to have become more pessimistic on Zhejiang Huace Film & TV, noting the sizeable cut to revenue estimates in this update.

See our latest analysis for Zhejiang Huace Film & TV

We'd point out that there was no major changes to their price target of CN¥5.97, suggesting the latest estimates were not enough to shift their view on the value of the business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. For example, we noticed that Zhejiang Huace Film & TV's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 50% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 13% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 16% annually. Not only are Zhejiang Huace Film & TV's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Zhejiang Huace Film & TV this year. The analysts also expect revenues to grow faster than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Zhejiang Huace Film & TV going forwards.

Want more information? At least one of Zhejiang Huace Film & TV's seven analysts has provided estimates out to 2025, which can be seen for 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.