Just In: One Analyst Has Become A Lot More Bullish On Shanghai Industrial Holdings Limited's (HKG:363) Earnings

Shanghai Industrial Holdings Limited (HKG:363) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects.

Following this upgrade, Shanghai Industrial Holdings' sole analyst are forecasting 2024 revenues to be HK$33b, approximately in line with the last 12 months. Per-share earnings are expected to increase 2.5% to HK$3.23. Before this latest update, the analyst had been forecasting revenues of HK$29b and earnings per share (EPS) of HK$2.52 in 2024. There has definitely been an improvement in perception recently, with the analyst substantially increasing both their earnings and revenue estimates.

Check out our latest analysis for Shanghai Industrial Holdings

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Shanghai Industrial Holdings'historical trends, as the 1.4% annualised revenue growth to the end of 2024 is roughly in line with the 1.5% annual revenue growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 1.1% per year. So it's pretty clear that Shanghai Industrial Holdings is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that the analyst upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. With a serious upgrade to expectations, it might be time to take another look at Shanghai Industrial Holdings.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Shanghai Industrial Holdings going out as far as 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.