Things Look Grim For China-Singapore Suzhou Industrial Park Development Group Co., Ltd. (SHSE:601512) After Today's Downgrade

Market forces rained on the parade of China-Singapore Suzhou Industrial Park Development Group Co., Ltd. (SHSE:601512) shareholders today, when the analysts downgraded their forecasts for this year. Both revenue and earnings per share (EPS) estimates were cut sharply as the analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the downgrade, the current consensus from China-Singapore Suzhou Industrial Park Development Group's two analysts is for revenues of CN¥4.9b in 2024 which - if met - would reflect a huge 35% increase on its sales over the past 12 months. Statutory earnings per share are expected to be CN¥0.91, roughly flat on the last 12 months. Previously, the analysts had been modelling revenues of CN¥5.9b and earnings per share (EPS) of CN¥1.29 in 2024. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a large cut to earnings per share numbers as well.

View our latest analysis for China-Singapore Suzhou Industrial Park Development Group

The consensus price target fell 10% to CN¥11.37, with the weaker earnings outlook clearly leading analyst valuation estimates.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the China-Singapore Suzhou Industrial Park Development Group's past performance and to peers in the same industry. It's clear from the latest estimates that China-Singapore Suzhou Industrial Park Development Group's rate of growth is expected to accelerate meaningfully, with the forecast 35% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 0.6% p.a. 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 5.1% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that China-Singapore Suzhou Industrial Park Development Group is expected to grow much faster than its 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. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of China-Singapore Suzhou Industrial Park Development Group.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for China-Singapore Suzhou Industrial Park Development Group going out as far as 2026, and you can see them free on our platform here.

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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.