In This Article:
The most recent earnings update China Agri-Industries Holdings Limited’s (SEHK:606) released in December 2017 indicated that the business experienced a robust tailwind, leading to a double-digit earnings growth of 31.18%. Below, I’ve presented key growth figures on how market analysts predict China Agri-Industries Holdings’s earnings growth outlook over the next few years and whether the future looks even brighter than the past. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in. View our latest analysis for China Agri-Industries Holdings
Market analysts’ consensus outlook for this coming year seems buoyant, with earnings climbing by a robust 22.58%. This growth seems to continue into the following year with rates reaching double digit 36.79% compared to today’s earnings, and finally hitting HK$2.19B by 2021.
Even though it’s useful to be aware of the rate of growth year by year relative to today’s figure, it may be more insightful analyzing the rate at which the earnings are moving every year, on average. The pro of this technique is that we can get a better picture of the direction of China Agri-Industries Holdings’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate this rate, I’ve inserted 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 16.96%. This means that, we can assume China Agri-Industries Holdings will grow its earnings by 16.96% every year for the next couple of years.
Next Steps:
For China Agri-Industries Holdings, I’ve compiled three relevant aspects you should further examine:
-
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 606 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 606 is currently mispriced by the market.
-
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of 606? 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.