Shanghai Nenghui Technology Co.,Ltd. (SZSE:301046) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that Shanghai Nenghui TechnologyLtd will make substantially more sales than they'd previously expected. The market seems to be pricing in some improvement in the business too, with the stock up 5.4% over the past week, closing at CN¥18.27. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

Following the upgrade, the latest consensus from Shanghai Nenghui TechnologyLtd's two analysts is for revenues of CN¥1.3b in 2024, which would reflect a sizeable 24% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to swell 10% to CN¥0.62. Before this latest update, the analysts had been forecasting revenues of CN¥1.1b and earnings per share (EPS) of CN¥0.60 in 2024. The most recent forecasts are noticeably more optimistic, with a decent improvement in revenue estimates and a lift to earnings per share as well.

Despite these upgrades, the analysts have not made any major changes to their price target of CN¥23.59, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Shanghai Nenghui TechnologyLtd's past performance and to peers in the same industry. It's clear from the latest estimates that Shanghai Nenghui TechnologyLtd's rate of growth is expected to accelerate meaningfully, with the forecast 24% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 13% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.8% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Shanghai Nenghui TechnologyLtd 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. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Shanghai Nenghui TechnologyLtd.

Analysts are definitely bullish on Shanghai Nenghui TechnologyLtd, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including concerns around earnings quality. For more information, you can click through to our platform to learn more about this and the 1 other warning sign we've identified .

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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.