Market forces rained on the parade of Beijing Chunlizhengda Medical Instruments Co., Ltd. (HKG:1858) shareholders today, when the analysts downgraded their forecasts for this year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.
Following the downgrade, the latest consensus from Beijing Chunlizhengda Medical Instruments' twin analysts is for revenues of CN¥1.2b in 2024, which would reflect a solid 14% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of CN¥1.4b in 2024. The consensus view seems to have become more pessimistic on Beijing Chunlizhengda Medical Instruments, noting the measurable cut to revenue estimates in this update.
See our latest analysis for Beijing Chunlizhengda Medical Instruments
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Beijing Chunlizhengda Medical Instruments' rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 9.3% p.a. 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 21% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Beijing Chunlizhengda Medical Instruments is expected to grow slower than the wider industry.
The Bottom Line
The most important thing to take away is that analysts cut their revenue estimates for this year. They also expect company revenue to perform worse than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Beijing Chunlizhengda Medical Instruments after today.
Unsatisfied? At least one of Beijing Chunlizhengda Medical Instruments' twin analysts has provided estimates out to 2026, which can be seen for free on our platform here.
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