What Should We Expect From Chow Tai Fook Jewellery Group Limited’s (HKG:1929) Earnings In The Next 12 Months?
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Since Chow Tai Fook Jewellery Group Limited (HKG:1929) released its earnings in September 2018, analysts seem fairly confident, with profits predicted to increase by 7.2% next year compared with the past 5-year average growth rate of -17%. Currently with trailing-twelve-month earnings of HK$4.1b, we can expect this to reach HK$4.4b by 2020. Below is a brief commentary around Chow Tai Fook Jewellery Group’s earnings outlook going forward, which may give you a sense of market sentiment for the company. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
Check out our latest analysis for Chow Tai Fook Jewellery Group
What can we expect from Chow Tai Fook Jewellery Group in the longer term?
The view from 15 analysts over the next three years is one of positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To get an idea of the overall earnings growth trend for 1929, 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.
From the current net income level of HK$4.1b and the final forecast of HK$4.8b by 2022, the annual rate of growth for 1929’s earnings is 8.0%. This leads to an EPS of HK$0.50 in the final year of projections relative to the current EPS of HK$0.41. In 2022, 1929’s profit margin will have expanded from 6.9% to 7.5%.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Chow Tai Fook Jewellery Group, I’ve compiled three relevant aspects you should look at:
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 Chow Tai Fook Jewellery Group 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 Chow Tai Fook Jewellery Group is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Chow Tai Fook Jewellery Group? 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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