Hilong Holding Limited (HKG:1623) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's forecasts. The analyst has sharply increased their revenue numbers, with a view that Hilong Holding will make substantially more sales than they'd previously expected.

Following the upgrade, the latest consensus from Hilong Holding's solo analyst is for revenues of CN¥3.5b in 2022, which would reflect a meaningful 15% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analyst was forecasting revenues of CN¥3.2b in 2022. It looks like there's been a clear increase in optimism around Hilong Holding, given the nice gain to revenue forecasts.

See our latest analysis for Hilong Holding

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analyst is definitely expecting Hilong Holding's growth to accelerate, with the forecast 15% annualised growth to the end of 2022 ranking favourably alongside historical growth of 1.1% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.2% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Hilong Holding is expected to grow much faster than its industry.

The Bottom Line

The highlight for us was that the analyst increased their revenue forecasts for Hilong Holding this year. The analyst also expects revenues to grow faster than the wider market. Given that the analyst appears to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Hilong Holding.

The covering analyst is definitely bullish on Hilong Holding, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including recent substantial insider selling. You can learn more, and discover the 2 other risks we've identified, 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.