Need To Know: The Consensus Just Cut Its CGN Mining Company Limited (HKG:1164) Estimates For 2023

One thing we could say about the analysts on CGN Mining Company Limited (HKG:1164) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

Following the downgrade, the latest consensus from CGN Mining's four analysts is for revenues of HK$6.2b in 2023, which would reflect a huge 48% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of HK$6.8b in 2023. It looks like forecasts have become a fair bit less optimistic on CGN Mining, given the substantial drop in revenue estimates.

View our latest analysis for CGN Mining

The consensus price target rose 6.6% to HK$1.50, with the analysts clearly more optimistic about CGN Mining's prospects following this update.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting CGN Mining's growth to accelerate, with the forecast 48% annualised growth to the end of 2023 ranking favourably alongside historical growth of 24% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue shrink 1.0% per year. So it's clear with the acceleration in growth, CGN Mining is expected to grow meaningfully faster than the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for CGN Mining this year. Analysts also expect revenues to perform better than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Given the stark change in sentiment, we'd understand if investors became more cautious on CGN Mining after today.

Need some more information? At least one of CGN Mining's four analysts has provided estimates out to 2025, which can be seen for 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.