Analysts have turned bearish on Amlogic, slashing revenue and EPS estimates. Despite these downgrades, the unchanged price target suggests no long-term impact on valuation. However, the cut in EPS may signal worsening business conditions, potentially causing investor caution.

Analysts downgraded earnings per share estimates, indicating a sentiment decline post-results. Revenue forecasts were also downgraded, but business growth is still expected to match the industry. The consensus price target remains at CN¥97.27.

Amlogic's financial woes are marked by falling ROCE and futile capital expansion not driving up revenue, which is a bad sign. The downward trend of the company's stock, a 17% drop over three years, reflects these troubling conditions.

Amlogic's net income growth may be attributed to factors such as strategic decisions by the management or a low payout ratio. The absence of dividends could be fueling earnings growth. Earnings are predicted to further accelerate.

Amlogic's decreasing ROCE trends and sales, alongside increasing capital input, is worrisome for its future. Yet, the stock yielded a 4.4% return over three years. Better investment opportunities may lurk elsewhere.