Today is shaping up negative for Hangzhou Onechance Tech Crop. (SZSE:300792) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.

Following the downgrade, the latest consensus from Hangzhou Onechance Tech Crop's three analysts is for revenues of CN¥1.5b in 2024, which would reflect a meaningful 14% improvement in sales compared to the last 12 months. Per-share earnings are expected to jump 39% to CN¥0.63. Before this latest update, the analysts had been forecasting revenues of CN¥2.1b and earnings per share (EPS) of CN¥1.16 in 2024. Indeed, we can see that the analysts are a lot more bearish about Hangzhou Onechance Tech Crop's prospects, administering a pretty serious reduction 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 32% to CN¥18.00.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Hangzhou Onechance Tech Crop's growth to accelerate, with the forecast 14% annualised growth to the end of 2024 ranking favourably alongside historical growth of 3.4% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 13% per year. Hangzhou Onechance Tech Crop is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Hangzhou Onechance Tech Crop. Lamentably, they also downgraded their sales forecasts, but the business is still expected to grow at roughly the same rate as the market itself. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Hangzhou Onechance Tech Crop.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Hangzhou Onechance Tech Crop analysts - going out to 2026, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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