Need To Know: One Analyst Is Much More Bullish On Chin Well Holdings Berhad (KLSE:CHINWEL) Revenues

Chin Well Holdings Berhad (KLSE:CHINWEL) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. The analyst has sharply increased their revenue numbers, with a view that Chin Well Holdings Berhad will make substantially more sales than they'd previously expected.

Following the upgrade, the most recent consensus for Chin Well Holdings Berhad from its sole analyst is for revenues of RM631m in 2022 which, if met, would be a solid 13% increase on its sales over the past 12 months. Before the latest update, the analyst was foreseeing RM547m of revenue in 2022. It looks like there's been a clear increase in optimism around Chin Well Holdings Berhad, given the decent improvement in revenue forecasts.

See our latest analysis for Chin Well Holdings Berhad

Additionally, the consensus price target for Chin Well Holdings Berhad increased 26% to RM2.24, showing a clear increase in optimism from the analyst involved.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Chin Well Holdings Berhad's past performance and to peers in the same industry. For example, we noticed that Chin Well Holdings Berhad's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 13% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 1.4% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 18% annually for the foreseeable future. So although Chin Well Holdings Berhad's revenue growth is expected to improve, it is still expected to grow slower than the industry.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst lifted their revenue estimates for this year. They're also anticipating slower revenue growth than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Chin Well Holdings Berhad.

Thirsting for more data? We have estimates for Chin Well Holdings Berhad until 2024 from one covering analyst, and you can see them 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.