Shandong Hi-speed Company Limited (SHSE:600350) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.
Following the upgrade, the most recent consensus for Shandong Hi-speed from its three analysts is for revenues of CN¥29b in 2024 which, if met, would be a decent 8.1% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing CN¥20b of revenue in 2024. The consensus has definitely become more optimistic, showing a sizeable gain to revenue forecasts.
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. We would highlight that Shandong Hi-speed's revenue growth is expected to slow, with the forecast 8.1% annualised growth rate until the end of 2024 being well below the historical 23% p.a. growth over the last five years. Compare this to the 40 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 7.6% per year. Factoring in the forecast slowdown in growth, it looks like Shandong Hi-speed is forecast to grow at about the same rate as the wider industry.
The Bottom Line
The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. The analysts also expect revenues to grow approximately in line with the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Shandong Hi-speed.
Of course, there's always more to the story. At least one of Shandong Hi-speed's three 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.