One thing we could say about the analysts on Suzhou Zelgen Biopharmaceuticals Co., Ltd. (SHSE:688266) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.
After this downgrade, Suzhou Zelgen Biopharmaceuticals' three analysts are now forecasting revenues of CN¥429m in 2023. This would be a meaningful 11% improvement in sales compared to the last 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 49% to CN¥0.57. However, before this estimates update, the consensus had been expecting revenues of CN¥543m and CN¥0.56 per share in losses. So there's definitely been a change in sentiment in this update, with the analysts administering a substantial haircut to this year's revenue estimates, while at the same time holding losses per share steady.
View our latest analysis for Suzhou Zelgen Biopharmaceuticals
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Suzhou Zelgen Biopharmaceuticals' revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 11% growth on an annualised basis. This is compared to a historical growth rate of 70% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 22% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Suzhou Zelgen Biopharmaceuticals.
The Bottom Line
Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Suzhou Zelgen Biopharmaceuticals' revenues are expected to grow slower than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Suzhou Zelgen Biopharmaceuticals going forwards.
Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Suzhou Zelgen Biopharmaceuticals going out to 2025, and you can see them 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.
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