Intron Technology Holdings Limited (HKG:1760) Just Reported And Analysts Have Been Cutting Their Estimates

Last week, you might have seen that Intron Technology Holdings Limited (HKG:1760) released its half-yearly result to the market. The early response was not positive, with shares down 7.7% to HK$1.20 in the past week. Results were roughly in line with estimates, with revenues of CN¥2.8b and statutory earnings per share of CN¥0.29. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Intron Technology Holdings

Following last week's earnings report, Intron Technology Holdings' four analysts are forecasting 2024 revenues to be CN¥6.12b, approximately in line with the last 12 months. Statutory earnings per share are forecast to decline 12% to CN¥0.21 in the same period. In the lead-up to this report, the analysts had been modelling revenues of CN¥6.82b and earnings per share (EPS) of CN¥0.31 in 2024. Indeed, we can see that the analysts are a lot more bearish about Intron Technology Holdings' prospects following the latest results, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

It'll come as no surprise then, to learn that the analysts have cut their price target 32% to HK$2.68. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Intron Technology Holdings, with the most bullish analyst valuing it at HK$3.41 and the most bearish at HK$2.06 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Intron Technology Holdings' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 3.7% growth on an annualised basis. This is compared to a historical growth rate of 26% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.8% annually. Factoring in the forecast slowdown in growth, it seems obvious that Intron Technology Holdings is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Intron Technology Holdings. Long-term earnings power is much more important than next year's profits. We have forecasts for Intron Technology Holdings going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 4 warning signs for Intron Technology Holdings you should be aware of, and 1 of them can't be ignored.

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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.