Analyst Forecasts For Ginlong Technologies Co., Ltd. (SZSE:300763) Are Surging Higher

Celebrations may be in order for Ginlong Technologies Co., Ltd. (SZSE:300763) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance. The market seems to be pricing in some improvement in the business too, with the stock up 8.3% over the past week, closing at CN¥59.60. Could this big upgrade push the stock even higher?

After the upgrade, the seven analysts covering Ginlong Technologies are now predicting revenues of CN¥7.8b in 2024. If met, this would reflect a substantial 26% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to leap 108% to CN¥2.63. Prior to this update, the analysts had been forecasting revenues of CN¥7.1b and earnings per share (EPS) of CN¥2.26 in 2024. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

Check out our latest analysis for Ginlong Technologies

Despite these upgrades, the analysts have not made any major changes to their price target of CN¥60.61, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Ginlong Technologies' rate of growth is expected to accelerate meaningfully, with the forecast 58% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 36% 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 16% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Ginlong Technologies to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Some investors might be disappointed to see that the price target is unchanged, but we feel that improving fundamentals are usually a positive - assuming these forecasts are met! So Ginlong Technologies could be a good candidate for more research.

Analysts are clearly in love with Ginlong Technologies at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as its declining profit margins. You can learn more, and discover the 2 other concerns we've identified, for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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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.