Shareholders in China Film Co., Ltd. (SHSE:600977) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.
After the upgrade, the six analysts covering China Film are now predicting revenues of CN¥6.6b in 2024. If met, this would reflect a sizeable 35% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing CN¥5.9b of revenue in 2024. The consensus has definitely become more optimistic, showing a nice gain to revenue forecasts.
There was no particular change to the consensus price target of CN¥11.60, with China Film's latest outlook seemingly not enough to result in a change of valuation.
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. For example, we noticed that China Film's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 49% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 15% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 15% per year. Not only are China Film's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The highlight for us was that analysts increased their revenue forecasts for China Film this year. The analysts also expect revenues to grow faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at China Film.
Hungry for more information? At least one of China Film's six analysts has provided estimates 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 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.