Analysts Are Betting On Dynagreen Environmental Protection Group Co., Ltd. (HKG:1330) With A Big Upgrade This Week

Dynagreen Environmental Protection Group Co., Ltd. (HKG:1330) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.

After the upgrade, the consensus from Dynagreen Environmental Protection Group's two analysts is for revenues of CN¥4.4b in 2022, which would reflect an uneasy 12% decline in sales compared to the last year of performance. Statutory earnings per share are forecast to be CN¥0.70, approximately in line with the last 12 months. Prior to this update, the analysts had been forecasting revenues of CN¥3.4b and earnings per share (EPS) of CN¥0.66 in 2022. The most recent forecasts are noticeably more optimistic, with a considerable lift to revenue estimates and a lift to earnings per share as well.

View our latest analysis for Dynagreen Environmental Protection Group

Despite these upgrades, the analysts have not made any major changes to their price target of HK$3.90, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 12% by the end of 2022. This indicates a significant reduction from annual growth of 39% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 0.5% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Dynagreen Environmental Protection Group is expected to lag the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Dynagreen Environmental Protection Group.

Analysts are clearly in love with Dynagreen Environmental Protection Group at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as its declining profit margins. You can learn more, and discover the 2 other concerns we've identified, for 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 upgrading 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.