Hangzhou Onechance Tech Crop. (SZSE:300792) Analysts Are More Bearish Than They Used To Be

One thing we could say about the analysts on Hangzhou Onechance Tech Crop. (SZSE:300792) - 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. Bidders are definitely seeing a different story, with the stock price of CN¥17.90 reflecting a 10% rise in the past week. With such a sharp increase, it seems brokers may have seen something that is not yet being priced in by the wider market.

After this downgrade, Hangzhou Onechance Tech Crop's four analysts are now forecasting revenues of CN¥1.5b in 2024. This would be a notable 16% improvement in sales compared to the last 12 months. Per-share earnings are expected to surge 66% to CN¥0.66. Before this latest update, the analysts had been forecasting revenues of CN¥2.1b and earnings per share (EPS) of CN¥1.16 in 2024. Indeed, we can see that the analysts are a lot more bearish about Hangzhou Onechance Tech Crop's prospects, administering a sizeable cut to revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for Hangzhou Onechance Tech Crop

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Hangzhou Onechance Tech Crop's past performance and to peers in the same industry. It's clear from the latest estimates that Hangzhou Onechance Tech Crop's rate of growth is expected to accelerate meaningfully, with the forecast 16% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 2.0% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Hangzhou Onechance Tech Crop is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Lamentably, they also downgraded their sales forecasts, but the business is still expected to grow at roughly the same rate as the market itself. We wouldn't be surprised to find shareholders feeling a bit shell-shocked, after these downgrades. It looks like analysts have become a lot more bearish on Hangzhou Onechance Tech Crop, and their negativity could be grounds for caution.

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 Hangzhou Onechance Tech Crop 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.