Metallurgical Corporation of China Ltd. (HKG:1618) Analysts Are Reducing Their Forecasts For This Year

The latest analyst coverage could presage a bad day for Metallurgical Corporation of China Ltd. (HKG:1618), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.

After the downgrade, the ten analysts covering Metallurgical Corporation of China are now predicting revenues of CN¥683b in 2024. If met, this would reflect a credible 7.7% improvement in sales compared to the last 12 months. Per-share earnings are expected to soar 37% to CN¥0.46. Prior to this update, the analysts had been forecasting revenues of CN¥777b and earnings per share (EPS) of CN¥0.65 in 2024. Indeed, we can see that the analysts are a lot more bearish about Metallurgical Corporation of China's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Metallurgical Corporation of China

The consensus price target fell 10% to HK$2.07, with the weaker earnings outlook clearly leading analyst valuation estimates.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Metallurgical Corporation of China's revenue growth is expected to slow, with the forecast 7.7% annualised growth rate until the end of 2024 being well below the historical 17% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 10.0% annually. Factoring in the forecast slowdown in growth, it seems obvious that Metallurgical Corporation of China is also expected to grow slower than other industry participants.

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. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Metallurgical Corporation of China.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Metallurgical Corporation of China 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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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.