Analysts Just Slashed Their Ming Yuan Cloud Group Holdings Limited (HKG:909) EPS Numbers
The analysts covering Ming Yuan Cloud Group Holdings Limited (HKG:909) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.
Following the latest downgrade, the six analysts covering Ming Yuan Cloud Group Holdings provided consensus estimates of CN¥1.1b revenue in 2026, which would reflect a measurable 4.5% decline on its sales over the past 12 months. Per-share earnings are expected to soar 149% to CN¥0.025. Prior to this update, the analysts had been forecasting revenues of CN¥1.3b and earnings per share (EPS) of CN¥0.031 in 2026. Indeed, we can see that the analysts are a lot more bearish about Ming Yuan Cloud Group Holdings' prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.
See our latest analysis for Ming Yuan Cloud Group Holdings
It'll come as no surprise then, to learn that the analysts have cut their price target 30% to CN¥1.88. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Ming Yuan Cloud Group Holdings analyst has a price target of CN¥2.64 per share, while the most pessimistic values it at CN¥0.94. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2026 compared to the historical decline of 12% per annum over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 35% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect Ming Yuan Cloud Group Holdings to suffer worse than the wider industry.
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 Ming Yuan Cloud Group Holdings. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Ming Yuan Cloud Group Holdings' revenues are expected to grow 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 Ming Yuan Cloud Group Holdings.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Ming Yuan Cloud Group Holdings going out to 2028, 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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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.