One thing we could say about the analysts on China-Singapore Suzhou Industrial Park Development Group Co., Ltd. (SHSE:601512) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.
Following the downgrade, the latest consensus from China-Singapore Suzhou Industrial Park Development Group's dual analysts is for revenues of CN¥4.9b in 2024, which would reflect a major 35% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to be CN¥0.91, roughly flat on the last 12 months. Prior to this update, the analysts had been forecasting revenues of CN¥5.9b and earnings per share (EPS) of CN¥1.29 in 2024. Indeed, we can see that the analysts are a lot more bearish about China-Singapore Suzhou Industrial Park Development Group's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.
It'll come as no surprise then, to learn that the analysts have cut their price target 10% to CN¥11.37.
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 China-Singapore Suzhou Industrial Park Development Group's rate of growth is expected to accelerate meaningfully, with the forecast 35% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 0.6% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.1% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that China-Singapore Suzhou Industrial Park Development Group is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of China-Singapore Suzhou Industrial Park Development Group.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen 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.