Some Analysts Just Cut Their Sunac China Holdings Limited (HKG:1918) Estimates

One thing we could say about the analysts on Sunac China Holdings Limited (HKG:1918) - 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 latest downgrade, Sunac China Holdings' three analysts currently expect revenues in 2023 to be CN¥97b, approximately in line with the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of CN¥231b in 2023. The consensus view seems to have become more pessimistic on Sunac China Holdings, noting the sizeable cut to revenue estimates in this update.

Check out our latest analysis for Sunac China Holdings

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. It's pretty clear that there is an expectation that Sunac China Holdings' revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 0.6% growth on an annualised basis. This is compared to a historical growth rate of 10% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 8.8% annually. Factoring in the forecast slowdown in growth, it seems obvious that Sunac China Holdings is also expected to grow slower than other industry participants.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Sunac China Holdings this year. They're also anticipating slower revenue growth than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Sunac China Holdings going forwards.

Want to learn more? At least one of Sunac China Holdings' three 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.