Party Time: One Broker Just Made Major Increases To Their Hilong Holding Limited (HKG:1623) Earnings Forecast

Celebrations may be in order for Hilong Holding Limited (HKG:1623) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. The analyst greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Following the upgrade, the current consensus from Hilong Holding's solitary analyst is for revenues of CN¥3.5b in 2022 which - if met - would reflect a notable 15% increase on its sales over the past 12 months. Statutory earnings per share are presumed to jump 192% to CN¥0.10. Prior to this update, the analyst had been forecasting revenues of CN¥3.2b and earnings per share (EPS) of CN¥0.05 in 2022. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

Check out our latest analysis for Hilong Holding

It will come as no surprise to learn that the analyst has increased their price target for Hilong Holding 172% to CN¥0.56 on the back of these upgrades.

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 Hilong Holding's rate of growth is expected to accelerate meaningfully, with the forecast 15% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 1.1% 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 7.7% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Hilong Holding is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, the analyst also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Hilong Holding could be worth investigating further.

The covering analyst is definitely bullish on Hilong Holding, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including recent substantial insider selling. You can learn more, and discover the 2 other warning signs 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.