One thing we could say about the analysts on Jinyu Bio-technology Co., Ltd. (SHSE:600201) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.

Following the latest downgrade, Jinyu Bio-technology's eight analysts currently expect revenues in 2024 to be CN¥1.5b, approximately in line with the last 12 months. Per-share earnings are expected to accumulate 4.8% to CN¥0.26. Before this latest update, the analysts had been forecasting revenues of CN¥1.8b and earnings per share (EPS) of CN¥0.32 in 2024. Indeed, we can see that the analysts are a lot more bearish about Jinyu Bio-technology's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

It'll come as no surprise then, to learn that the analysts have cut their price target 13% to CN¥7.94.

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 pretty clear that there is an expectation that Jinyu Bio-technology's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 0.4% growth on an annualised basis. This is compared to a historical growth rate of 3.3% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 25% annually. Factoring in the forecast slowdown in growth, it seems obvious that Jinyu Bio-technology is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Jinyu Bio-technology.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Jinyu Bio-technology analysts - going out to 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 downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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