China Renaissance Holdings Limited (HKG:1911) Analysts Just Trimmed Their Revenue Forecasts By 24%

One thing we could say about the analysts on China Renaissance Holdings Limited (HKG:1911) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

Following the downgrade, the current consensus from China Renaissance Holdings' four analysts is for revenues of CN¥2.8b in 2022 which - if met - would reflect a meaningful 17% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing CN¥3.7b of revenue in 2022. The consensus view seems to have become more pessimistic on China Renaissance Holdings, noting the pretty serious reduction to revenue estimates in this update.

View our latest analysis for China Renaissance Holdings

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. We would highlight that China Renaissance Holdings' revenue growth is expected to slow, with the forecast 17% annualised growth rate until the end of 2022 being well below the historical 29% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 12% annually. So it's pretty clear that, while China Renaissance Holdings' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for China Renaissance Holdings this year. Analysts also expect revenues to grow faster than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on China Renaissance Holdings after today.

Want to learn more? We have estimates for China Renaissance Holdings from its four analysts out until 2024, 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 downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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