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The latest earnings release China Cinda Asset Management Co Ltd.’s (SEHK:1359) announced in December 2017 revealed that the business gained from a strong tailwind, leading to a double-digit earnings growth of 10.07%. Below, I’ve laid out key growth figures on how market analysts view China Cinda Asset Management’s earnings growth outlook over the next few years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings. See our latest analysis for China Cinda Asset Management
Market analysts’ consensus outlook for this coming year seems optimistic, with earnings expanding by a robust 16.73%. This growth seems to continue into the following year with rates reaching double digit 37.35% compared to today’s earnings, and finally hitting CN¥23.96B by 2021.
Even though it is helpful to be aware of the growth rate year by year relative to today’s figure, it may be more valuable determining the rate at which the business is moving every year, on average. The advantage of this approach is that it removes the impact of near term flucuations and accounts for the overarching direction of China Cinda Asset Management’s earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I’ve appended a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 12.96%. This means, we can presume China Cinda Asset Management will grow its earnings by 12.96% every year for the next few years.
Next Steps:
For China Cinda Asset Management, there are three pertinent aspects you should look at:
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Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
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Valuation: What is 1359 worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether 1359 is currently mispriced by the market.
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Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of 1359? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.