The latest analyst coverage could presage a bad day for Shanying International Holdings Co.,Ltd (SHSE:600567), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.

Following the downgrade, the current consensus from Shanying International HoldingsLtd's seven analysts is for revenues of CN¥34b in 2024 which - if met - would reflect a notable 13% increase on its sales over the past 12 months. Per-share earnings are expected to jump 34% to CN¥0.17. Previously, the analysts had been modelling revenues of CN¥37b and earnings per share (EPS) of CN¥0.22 in 2024. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a large cut to earnings per share numbers as well.

The consensus price target fell 7.1% to CN¥2.14, with the weaker earnings outlook clearly leading analyst valuation estimates.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Shanying International HoldingsLtd's rate of growth is expected to accelerate meaningfully, with the forecast 13% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 7.7% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. Shanying International HoldingsLtd 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 most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. There was also a drop in their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider market. 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 Shanying International HoldingsLtd.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Shanying International HoldingsLtd analysts - going out to 2026, 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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