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In December 2018, The United Laboratories International Holdings Limited (HKG:3933) released its earnings update. Generally, analyst forecasts appear to be pessimistic, as a -4.7% fall in profits is expected in the upcoming year. However, compared to its 5-year track record of the average earnings growth rate of -18%, this is still an improvement. Currently with a trailing-twelve-month profit of CN¥683m, the consensus growth rate suggests that earnings will drop to CN¥651m by 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
View our latest analysis for United Laboratories International Holdings
What can we expect from United Laboratories International Holdings in the longer term?
The view from 8 analysts over the next three years is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To get an idea of the overall earnings growth trend for 3933, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
This results in an annual growth rate of 9.1% based on the most recent earnings level of CN¥683m to the final forecast of CN¥861m by 2022. EPS reaches CN¥0.52 in the final year of forecast compared to the current CN¥0.42 EPS today. Margins are currently sitting at 9.1%, which is expected to expand to 9.3% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For United Laboratories International Holdings, there are three important aspects you should further examine:
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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 United Laboratories International Holdings 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 United Laboratories International Holdings 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 United Laboratories International Holdings? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.