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Zijin Mining Group Company Limited’s (SEHK:2899) released its most recent earnings update in December 2017, which signalled that the company experienced a sizeable tailwind, leading to a high double-digit earnings growth of 90.66%. Below, I’ve presented key growth figures on how market analysts predict Zijin Mining Group’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. Check out our latest analysis for Zijin Mining Group
Analysts’ outlook for next year seems optimistic, with earnings expanding by a robust 39.62%. This growth seems to continue into the following year with rates reaching double digit 64.96% compared to today’s earnings, and finally hitting CN¥7.59B by 2021.
While it is useful to understand the rate of growth each year relative to today’s value, it may be more insightful evaluating the rate at which the business is rising or falling every year, on average. The advantage of this technique is that it ignores near term flucuations and accounts for the overarching direction of Zijin Mining Group’s earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I’ve inserted a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 23.54%. This means that, we can expect Zijin Mining Group will grow its earnings by 23.54% every year for the next couple of years.
Next Steps:
For Zijin Mining Group, there are three fundamental factors 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 2899 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 2899 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 2899? 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.