Analyst Forecasts Just Became More Bearish On Sino Land Company Limited (HKG:83)

Market forces rained on the parade of Sino Land Company Limited (HKG:83) shareholders today, when the analysts downgraded their forecasts for this year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the latest downgrade, the current consensus, from the nine analysts covering Sino Land, is for revenues of HK$11b in 2024, which would reflect a measurable 5.7% reduction in Sino Land's sales over the past 12 months. Per-share earnings are expected to increase 3.5% to HK$0.74. Before this latest update, the analysts had been forecasting revenues of HK$14b and earnings per share (EPS) of HK$0.82 in 2024. Indeed, we can see that analyst sentiment has declined measurably after the new consensus came out, with a measurable cut to revenue estimates and a minor downgrade to EPS estimates to boot.

Check out our latest analysis for Sino Land

Analysts made no major changes to their price target of HK$11.40, suggesting the downgrades are not expected to have a long-term impact on Sino Land's valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with a forecast 5.7% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 15% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 11% per year. It's pretty clear that Sino Land's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Sino Land. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Sino Land's revenues are expected to grow slower than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Sino Land after today.

In light of the downgrade, our automated discounted cash flow valuation tool suggests that Sino Land could now be moderately overvalued. Find out why, and see how we estimate the valuation 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 downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.