How Do Analysts See Luk Fook Holdings (International) Limited (HKG:590) Performing In The Next 12 Months?
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On 31 March 2019, Luk Fook Holdings (International) Limited (HKG:590) announced its earnings update. Overall, analysts seem cautiously optimistic, with profits predicted to increase by 5.2% next year against the past 5-year average growth rate of -4.9%. Presently, with latest-twelve-month earnings at HK$1.5b, we should see this growing to HK$1.6b by 2020. Below is a brief commentary on the longer term outlook the market has for Luk Fook Holdings (International). Investors wanting to learn more about other aspects of the company should research its fundamentals here.
See our latest analysis for Luk Fook Holdings (International)
How is Luk Fook Holdings (International) going to perform in the near future?
The 12 analysts covering 590 view its longer term outlook with a positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To understand the overall trajectory of 590's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
From the current net income level of HK$1.5b and the final forecast of HK$1.8b by 2022, the annual rate of growth for 590’s earnings is 5.9%. This leads to an EPS of HK$2.93 in the final year of projections relative to the current EPS of HK$2.54. In 2022, 590's profit margin will have expanded from 9.4% to 9.8%.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Luk Fook Holdings (International), I've compiled three pertinent aspects you should further research:
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.
Valuation: What is Luk Fook Holdings (International) 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 Luk Fook Holdings (International) is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Luk Fook Holdings (International)? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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.