Today is shaping up negative for Hangzhou Haoyue Personal Care Co., Ltd (SHSE:605009) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.
After this downgrade, Hangzhou Haoyue Personal Care's three analysts are now forecasting revenues of CN¥3.2b in 2024. This would be a meaningful 17% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to swell 19% to CN¥3.39. Prior to this update, the analysts had been forecasting revenues of CN¥3.7b and earnings per share (EPS) of CN¥3.94 in 2024. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a real cut to earnings per share numbers as well.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Hangzhou Haoyue Personal Care's past performance and to peers in the same industry. It's clear from the latest estimates that Hangzhou Haoyue Personal Care's rate of growth is expected to accelerate meaningfully, with the forecast 17% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 9.2% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 15% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Hangzhou Haoyue Personal Care is expected to grow at about the same rate as the wider industry.
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 Haoyue Personal Care. Lamentably, they also downgraded their sales forecasts, but the business is still expected to grow at roughly the same rate as the market itself. We wouldn't be surprised to find shareholders feeling a bit shell-shocked, after these downgrades. It looks like analysts have become a lot more bearish on Hangzhou Haoyue Personal Care, and their negativity could be grounds for caution.
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 Hangzhou Haoyue Personal Care going out to 2026, 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.