Analysts Just Shaved Their Primarius Technologies Co., Ltd. (SHSE:688206) Forecasts Dramatically

One thing we could say about the analysts on Primarius Technologies Co., Ltd. (SHSE:688206) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.

After this downgrade, Primarius Technologies' three analysts are now forecasting revenues of CN¥430m in 2024. This would be a substantial 31% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 54% to CN¥0.06 per share. Previously, the analysts had been modelling revenues of CN¥497m and earnings per share (EPS) of CN¥0.055 in 2024. So we can see that the consensus has become notably more bearish on Primarius Technologies' outlook with these numbers, making a substantial drop in this year's revenue estimates. Furthermore, they expect the business to be loss-making this year, compared to their previous forecasts of a profit.

Check out our latest analysis for Primarius Technologies

The consensus price target fell 27% to CN¥19.74, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 31% growth on an annualised basis. That is in line with its 28% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 22% annually. So it's pretty clear that Primarius Technologies is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that analysts are expecting Primarius Technologies to become unprofitable this year. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

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 Primarius Technologies 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 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.