Today is shaping up negative for Shougang Fushan Resources Group Limited (HKG:639) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.
Following the latest downgrade, the three analysts covering Shougang Fushan Resources Group provided consensus estimates of HK$4.4b revenue in 2025, which would reflect a chunky 13% decline on its sales over the past 12 months. Statutory earnings per share are supposed to plunge 27% to HK$0.21 in the same period. Prior to this update, the analysts had been forecasting revenues of HK$5.5b and earnings per share (EPS) of HK$0.32 in 2025. It looks like analyst sentiment has declined substantially, with a sizeable cut to revenue estimates and a large cut to earnings per share numbers as well.
Check out our latest analysis for Shougang Fushan Resources Group
Despite the cuts to forecast earnings, there was no real change to the HK$3.31 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Shougang Fushan Resources Group's past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 13% by the end of 2025. This indicates a significant reduction from annual growth of 7.4% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 5.3% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Shougang Fushan Resources Group is expected to lag 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 Shougang Fushan Resources Group. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. The lack of change in the price target is puzzling in light of the downgrade but, with a serious decline expected this year, we wouldn't be surprised if investors were a bit wary of Shougang Fushan Resources Group.
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 Shougang Fushan Resources Group going out to 2027, 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 with high insider ownership.
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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.