Zhejiang Century Huatong Group Co.,Ltd (SZSE:002602) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline. The market seems to be pricing in some improvement in the business too, with the stock up 5.1% over the past week, closing at CN¥3.27. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

Following the upgrade, the current consensus from Zhejiang Century Huatong GroupLtd's twin analysts is for revenues of CN¥20b in 2024 which - if met - would reflect a huge 21% increase on its sales over the past 12 months. Per-share earnings are expected to surge 178% to CN¥0.31. Previously, the analysts had been modelling revenues of CN¥16b and earnings per share (EPS) of CN¥0.30 in 2024. The most recent forecasts are noticeably more optimistic, with a sizeable gain to revenue estimates and a lift to earnings per share as well.

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. One thing stands out from these estimates, which is that Zhejiang Century Huatong GroupLtd is forecast to grow faster in the future than it has in the past, with revenues expected to display 45% annualised growth until the end of 2024. If achieved, this would be a much better result than the 2.9% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 14% annually. So it looks like Zhejiang Century Huatong GroupLtd is expected to grow faster than its competitors, at least for a while.

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. They also upgraded their revenue estimates for this year, and sales are expected 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 Zhejiang Century Huatong GroupLtd.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Zhejiang Century Huatong GroupLtd going out as far as 2026, 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 upgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.