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After Vitasoy International Holdings Limited's (HKG:345) earnings announcement on 31 March 2019, the consensus outlook from analysts appear fairly confident, with profits predicted to increase by 23% next year compared with the past 5-year average growth rate of 15%. With trailing-twelve-month net income at current levels of HK$696m, we should see this rise to HK$857m in 2020. Below is a brief commentary on the longer term outlook the market has for Vitasoy International Holdings. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
Check out our latest analysis for Vitasoy International Holdings
Exciting times ahead?
The 5 analysts covering 345 view its longer term outlook with a positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of 345's earnings growth over these next few years.
By 2022, 345's earnings should reach HK$1.2b, from current levels of HK$696m, resulting in an annual growth rate of 18%. This leads to an EPS of HK$1.16 in the final year of projections relative to the current EPS of HK$0.66. Margins are currently sitting at 9.2%, approximately the same as previous years. With analysts forecasting revenue growth of 0.73347 and 345's net income growth expected to roughly track that, this company may add value for shareholders over time.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Vitasoy International Holdings, I've compiled three relevant 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 Vitasoy International Holdings 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 Vitasoy International Holdings 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 Vitasoy International Holdings? 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.