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Looking at Goodbaby International Holdings Limited's (HKG:1086) earnings update in December 2018, it seems that analyst forecasts are fairly optimistic, as a 35% increase in profits is expected in the upcoming year, against the past 5-year average growth rate of 9.8%. By 2020, we can expect Goodbaby International Holdings’s bottom line to reach HK$222m, a jump from the current trailing-twelve-month of HK$164m. Below is a brief commentary around Goodbaby International Holdings's earnings outlook going forward, which may give you a sense of market sentiment for the company. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
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Check out our latest analysis for Goodbaby International Holdings
Exciting times ahead?
Longer term expectations from the 6 analysts covering 1086’s stock 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 understand the overall trajectory of 1086's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
By 2022, 1086's earnings should reach HK$398m, from current levels of HK$164m, resulting in an annual growth rate of 30%. EPS reaches HK$0.24 in the final year of forecast compared to the current HK$0.098 EPS today. With a current profit margin of 1.9%, this movement will result in a margin of 3.8% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Goodbaby International Holdings, I've put together three essential 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 Goodbaby 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 Goodbaby 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 Goodbaby 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.