Analysts' Revenue Estimates For Laopu Gold Co., Ltd. (HKG:6181) Are Surging Higher

Laopu Gold Co., Ltd. (HKG:6181) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline. Could this be enough to reverse the market's pessimism for Laopu Gold? Over the past week the stock price has fallen 7.1% to HK$743.

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After this upgrade, Laopu Gold's 15 analysts are now forecasting revenues of CN¥19b in 2025. This would be a major 119% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to soar 145% to CN¥21.42. Before this latest update, the analysts had been forecasting revenues of CN¥14b and earnings per share (EPS) of CN¥21.09 in 2025. It seems analyst sentiment has certainly become more bullish on revenues, even though they haven't changed their view on earnings per share.

View our latest analysis for Laopu Gold

Analysts increased their price target 56% to CN¥842, perhaps signalling that higher revenues are a strong leading indicator for Laopu Gold's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Laopu Gold analyst has a price target of CN¥998 per share, while the most pessimistic values it at CN¥426. This is a fairly broad spread of estimates, suggesting that the analysts are forecasting a wide range of possible outcomes for the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Laopu Gold's rate of growth is expected to accelerate meaningfully, with the forecast 119% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 36% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 13% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Laopu Gold is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Laopu Gold.

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 Laopu Gold going out to 2027, and you can see them 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 with high insider ownership.

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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.