Yuan Long Ping High-Tech Agriculture Co., Ltd. (SZSE:000998) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that Yuan Long Ping High-Tech Agriculture will make substantially more sales than they'd previously expected.
Following the upgrade, the most recent consensus for Yuan Long Ping High-Tech Agriculture from its eight analysts is for revenues of CN¥6.6b in 2024 which, if met, would be a substantial 48% increase on its sales over the past 12 months. The losses are expected to disappear over the next year or so, with forecasts for a profit of CN¥0.41 per share next year. Prior to this update, the analysts had been forecasting revenues of CN¥5.9b and earnings per share (EPS) of CN¥0.40 in 2024. The forecasts seem more optimistic now, with a nice gain to revenue and a slight bump in earnings per share estimates.
View our latest analysis for Yuan Long Ping High-Tech Agriculture
Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of CN¥19.78, suggesting that the forecast performance does not have a long term impact on the company's valuation.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Yuan Long Ping High-Tech Agriculture's growth to accelerate, with the forecast 37% annualised growth to the end of 2024 ranking favourably alongside historical growth of 4.6% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 13% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Yuan Long Ping High-Tech Agriculture to grow faster than the wider industry.
The Bottom Line
The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for next year. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than 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 Yuan Long Ping High-Tech Agriculture.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for Yuan Long Ping High-Tech Agriculture going out to 2025, and you can see them free on our platform here..
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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.