Analyst Forecasts Just Got A Lot More Bearish On Shanghai Fullhan Microelectronics Co., Ltd. (SZSE:300613)

Today is shaping up negative for Shanghai Fullhan Microelectronics Co., Ltd. (SZSE:300613) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. 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 downgrade, the latest consensus from Shanghai Fullhan Microelectronics' dual analysts is for revenues of CN¥2.1b in 2024, which would reflect a notable 16% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing CN¥2.5b of revenue in 2024. The consensus view seems to have become more pessimistic on Shanghai Fullhan Microelectronics, noting the measurable cut to revenue estimates in this update.

See our latest analysis for Shanghai Fullhan Microelectronics

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. It's pretty clear that there is an expectation that Shanghai Fullhan Microelectronics' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 16% growth on an annualised basis. This is compared to a historical growth rate of 31% 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 23% per year. Factoring in the forecast slowdown in growth, it seems obvious that Shanghai Fullhan Microelectronics 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 Shanghai Fullhan Microelectronics this year. They also expect company revenue to perform worse than the wider market. Given the serious cut to this year's outlook, it's clear that analysts have turned more bearish on Shanghai Fullhan Microelectronics, and we wouldn't blame shareholders for feeling a little more cautious themselves.

Looking for more information? We have estimates for Shanghai Fullhan Microelectronics from its dual analysts out until 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.