Analysts' Revenue Estimates For Zhenro Properties Group Limited (HKG:6158) Are Surging Higher

Celebrations may be in order for Zhenro Properties Group Limited (HKG:6158) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the upgrade, the most recent consensus for Zhenro Properties Group from its three analysts is for revenues of CN¥41b in 2022 which, if met, would be a solid 20% increase on its sales over the past 12 months. The losses are expected to disappear over the next year or so, with forecasts for a profit of CN¥0.41 per share this year. Before this latest update, the analysts had been forecasting revenues of CN¥34b and earnings per share (EPS) of CN¥0.41 in 2022. There's clearly been a surge in bullishness around the company's sales pipeline, even if there's no real change in earnings per share forecasts.

Check out our latest analysis for Zhenro Properties Group

Even though revenue forecasts increased, there was no change to the consensus price target of CN¥0.70, suggesting the analysts are focused on earnings as the driver of value creation. 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. The most optimistic Zhenro Properties Group analyst has a price target of CN¥0.97 per share, while the most pessimistic values it at CN¥0.60. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Zhenro Properties Group shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Zhenro Properties Group's rate of growth is expected to accelerate meaningfully, with the forecast 43% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 13% 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 8.5% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Zhenro Properties Group to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Zhenro Properties Group.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Zhenro Properties Group analysts - going out to 2024, and you can see them free on our platform here.

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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.