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Beijing Chunlizhengda Medical Instruments Co., Ltd.'s (HKG:1858) released its most recent earnings update in April 2019, which confirmed that the company benefited from a large tailwind, eventuating to a high double-digit earnings growth of 55%. Below, I've presented key growth figures on how market analysts view Beijing Chunlizhengda Medical Instruments's earnings growth trajectory 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 Beijing Chunlizhengda Medical Instruments
Market analysts' prospects for the upcoming year seems buoyant, with earnings growing by a robust 33%. This growth seems to continue into the following year with rates reaching double digit 56% compared to today’s earnings, and finally hitting CN¥193m by 2022.
Even though it is informative knowing the rate of growth each year relative to today’s figure, it may be more valuable analyzing the rate at which the company is growing on average every year. The pro of this approach is that it ignores near term flucuations and accounts for the overarching direction of Beijing Chunlizhengda Medical Instruments's earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I've appended 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 19%. This means, we can assume Beijing Chunlizhengda Medical Instruments will grow its earnings by 19% every year for the next few years.
Next Steps:
For Beijing Chunlizhengda Medical Instruments, I've put together three essential aspects you should further examine:
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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 1858 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 1858 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 1858? 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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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.