Celebrations may be in order for Leader Harmonious Drive Systems Co., Ltd. (SHSE:688017) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that Leader Harmonious Drive Systems will make substantially more sales than they'd previously expected.
Following the upgrade, the current consensus from Leader Harmonious Drive Systems' eleven analysts is for revenues of CN¥470m in 2024 which - if met - would reflect a sizeable 35% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing CN¥427m of revenue in 2024. The consensus has definitely become more optimistic, showing a substantial gain in revenue forecasts.
We'd point out that there was no major changes to their price target of CN¥92.10, suggesting the latest estimates were not enough to shift their view on the value of the business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Leader Harmonious Drive Systems' past performance and to peers in the same industry. It's clear from the latest estimates that Leader Harmonious Drive Systems' rate of growth is expected to accelerate meaningfully, with the forecast 48% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 1.8% p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 17% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Leader Harmonious Drive Systems to grow faster than 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. Analysts also expect revenues to grow faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Leader Harmonious Drive Systems.
Want more information? At least one of Leader Harmonious Drive Systems' eleven 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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