Metallurgical Corporation of China Ltd. (HKG:1618) Analysts Just Slashed This Year's Estimates

One thing we could say about the analysts on Metallurgical Corporation of China Ltd. (HKG:1618) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.

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Following this downgrade, Metallurgical Corporation of China's three analysts are forecasting 2026 revenues to be CN¥436b, approximately in line with the last 12 months. Statutory earnings per share are presumed to expand 10% to CN¥0.28. Before this latest update, the analysts had been forecasting revenues of CN¥536b and earnings per share (EPS) of CN¥0.34 in 2026. Indeed, we can see that the analysts are a lot more bearish about Metallurgical Corporation of China's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Metallurgical Corporation of China

The consensus price target fell 23% to HK$1.95, with the weaker earnings outlook clearly leading analyst valuation estimates.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Metallurgical Corporation of China's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Metallurgical Corporation of China's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 0.2% growth on an annualised basis. This is compared to a historical growth rate of 2.3% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.8% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Metallurgical Corporation of China.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Metallurgical Corporation of China. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Metallurgical Corporation of China.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Metallurgical Corporation of China going out to 2028, and you can see them free on our platform here.

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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.