Stock Analysis

Things Look Grim For Longshine Technology Group Co., Ltd. (SZSE:300682) After Today's Downgrade

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SZSE:300682

The latest analyst coverage could presage a bad day for Longshine Technology Group Co., Ltd. (SZSE:300682), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the downgrade, the most recent consensus for Longshine Technology Group from its eleven analysts is for revenues of CN¥5.4b in 2024 which, if met, would be a decent 13% increase on its sales over the past 12 months. Statutory earnings per share are presumed to leap 25% to CN¥0.70. Prior to this update, the analysts had been forecasting revenues of CN¥6.3b and earnings per share (EPS) of CN¥0.90 in 2024. Indeed, we can see that the analysts are a lot more bearish about Longshine Technology Group's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Longshine Technology Group

SZSE:300682 Earnings and Revenue Growth April 8th 2024

It'll come as no surprise then, to learn that the analysts have cut their price target 7.0% to CN¥17.59.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 13% growth on an annualised basis. That is in line with its 13% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 21% annually. So it's pretty clear that Longshine Technology Group is expected to grow slower than similar companies in the same 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, and industry data suggests that Longshine Technology Group's revenues are expected to grow slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Longshine Technology Group.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Longshine Technology Group 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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Find out whether Longshine Technology Group is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.