Revenue Downgrade: Here's What Analysts Forecast For Shenzhen Overseas Chinese Town Co.,Ltd. (SZSE:000069)

The latest analyst coverage could presage a bad day for Shenzhen Overseas Chinese Town Co.,Ltd. (SZSE:000069), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

Following the latest downgrade, Shenzhen Overseas Chinese TownLtd's five analysts currently expect revenues in 2024 to be CN¥59b, approximately in line with the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of CN¥67b in 2024. The consensus view seems to have become more pessimistic on Shenzhen Overseas Chinese TownLtd, noting the substantial drop in revenue estimates in this update.

See our latest analysis for Shenzhen Overseas Chinese TownLtd

Notably, the analysts have cut their price target 13% to CN¥2.76, suggesting concerns around Shenzhen Overseas Chinese TownLtd's valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Shenzhen Overseas Chinese TownLtd's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Shenzhen Overseas Chinese TownLtd's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 2.3% growth on an annualised basis. This is compared to a historical growth rate of 6.1% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.7% per year. Factoring in the forecast slowdown in growth, it seems obvious that Shenzhen Overseas Chinese TownLtd is also expected to grow slower than other industry participants.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Shenzhen Overseas Chinese TownLtd this year. They also expect company revenue to perform worse than the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Shenzhen Overseas Chinese TownLtd going forwards.

Thirsting for more data? We have estimates for Shenzhen Overseas Chinese TownLtd from its five analysts out until 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 backed by insiders.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com