In This Article:
Best Pacific International Holdings Limited’s (HKG:2111) latest earnings announcement in December 2018 confirmed that the business endured a slight headwind with earnings declining from HK$304m to HK$284m, a change of -6.8%. Below, I’ve presented key growth figures on how market analysts predict Best Pacific International Holdings’s earnings growth outlook over the next few years and whether the future looks brighter. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings.
View our latest analysis for Best Pacific International Holdings
Want to participate in a research study? Help shape the future of investing tools and earn a $60 gift card!
Analysts’ outlook for next year seems buoyant, with earnings rising by a robust 21%. This growth seems to continue into the following year with rates arriving at double digit 44% compared to today’s earnings, and finally hitting HK$510m by 2022.
Even though it’s informative understanding the growth year by year relative to today’s figure, it may be more beneficial determining the rate at which the earnings are moving every year, on average. The benefit of this approach is that we can get a better picture of the direction of Best Pacific International 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’ve inserted 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 Best Pacific International Holdings will grow its earnings by 19% every year for the next few years.
Next Steps:
For Best Pacific International Holdings, I’ve compiled three important aspects you should further examine:
-
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 2111 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 2111 is currently mispriced by the market.
-
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of 2111? 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.