Need To Know: Analysts Are Much More Bullish On Shanghai Chicmax Cosmetic Co., Ltd. (HKG:2145)

Shareholders in Shanghai Chicmax Cosmetic Co., Ltd. (HKG:2145) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance.

Following the upgrade, the current consensus from Shanghai Chicmax Cosmetic's seven analysts is for revenues of CN¥6.9b in 2024 which - if met - would reflect a huge 64% increase on its sales over the past 12 months. Per-share earnings are expected to jump 79% to CN¥2.07. Previously, the analysts had been modelling revenues of CN¥5.6b and earnings per share (EPS) of CN¥1.57 in 2024. 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 Shanghai Chicmax Cosmetic

With these upgrades, we're not surprised to see that the analysts have lifted their price target 24% to CN¥51.51 per share. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Shanghai Chicmax Cosmetic, with the most bullish analyst valuing it at CN¥56.75 and the most bearish at CN¥43.24 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Shanghai Chicmax Cosmetic is an easy business to forecast or the underlying assumptions are obvious.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Shanghai Chicmax Cosmetic's past performance and to peers in the same industry. The analysts are definitely expecting Shanghai Chicmax Cosmetic's growth to accelerate, with the forecast 64% annualised growth to the end of 2024 ranking favourably alongside historical growth of 2.0% per annum over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 8.9% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Shanghai Chicmax Cosmetic is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Shanghai Chicmax Cosmetic.

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 Shanghai Chicmax Cosmetic going out to 2026, and you can see them 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.