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Shenzhou International Group Holdings Limited's (HKG:2313) announced its latest earnings update in December 2018, which confirmed that the business experienced a strong tailwind, eventuating to a double-digit earnings growth of 21%. Below, I've presented key growth figures on how market analysts perceive Shenzhou International Group 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.
Check out our latest analysis for Shenzhou International Group Holdings
Market analysts' prospects for the upcoming year seems positive, with earnings rising by a robust 18%. This growth seems to continue into the following year with rates arriving at double digit 40% compared to today’s earnings, and finally hitting CN¥7.6b by 2022.
Although it’s helpful to be aware of the growth rate each year relative to today’s value, it may be more beneficial to gauge the rate at which the earnings are growing every year, on average. The benefit of this approach is that we can get a better picture of the direction of Shenzhou International Group 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 put 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 17%. This means that, we can expect Shenzhou International Group Holdings will grow its earnings by 17% every year for the next couple of years.
Next Steps:
For Shenzhou International Group Holdings, there are three relevant aspects 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 2313 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 2313 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 2313? 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.