Celebrations may be in order for Sichuan Kelun-Biotech Biopharmaceutical Co., Ltd. (HKG:6990) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance.

Following the latest upgrade, Sichuan Kelun-Biotech Biopharmaceutical's 18 analysts currently expect revenues in 2025 to be CN¥1.9b, approximately in line with the last 12 months. Losses are supposed to balloon 36% to CN¥1.59 per share. However, before this estimates update, the consensus had been expecting revenues of CN¥1.7b and CN¥3.00 per share in losses. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.

Check out our latest analysis for Sichuan Kelun-Biotech Biopharmaceutical

Despite these upgrades, the analysts have not made any major changes to their price target of HK$239, implying that their latest estimates don't have a long term impact on what they think the stock is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 0.1% by the end of 2025. This indicates a significant reduction from annual growth of 45% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 26% annually for the foreseeable future. It's pretty clear that Sichuan Kelun-Biotech Biopharmaceutical's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Sichuan Kelun-Biotech Biopharmaceutical is moving incrementally towards profitability. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. The lack of change in the price target is puzzling, but with a serious upgrade to this year's earnings expectations, it might be time to take another look at Sichuan Kelun-Biotech Biopharmaceutical.

It's great to see the analysts upgrading their estimates, but the biggest highlight to us is that the business is expected to become profitable in the foreseeable future. For more information, you can click through to our free platform to learn more about these forecasts.

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.

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