In This Article:
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
As Zhaojin Mining Industry Company Limited (HKG:1818) announced its earnings release on 31 December 2018, it seems that analyst forecasts are substantially optimistic, with earnings expected to grow by a high double-digit of 53% in the upcoming year, relative to the past 5-year average growth rate of -3.8%. Currently with trailing-twelve-month earnings of CN¥474m, we can expect this to reach CN¥727m by 2020. Below is a brief commentary on the longer term outlook the market has for Zhaojin Mining Industry. For those interested in more of an analysis of the company, you can research its fundamentals here.
See our latest analysis for Zhaojin Mining Industry
Exciting times ahead?
The longer term view from the 10 analysts covering 1818 is one of positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.
From the current net income level of CN¥474m and the final forecast of CN¥915m by 2022, the annual rate of growth for 1818’s earnings is 22%. EPS reaches CN¥0.27 in the final year of forecast compared to the current CN¥0.15 EPS today. In 2022, 1818's profit margin will have expanded from 6.6% to 11%.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Zhaojin Mining Industry, I've compiled three key factors you should further research:
-
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 Zhaojin Mining Industry 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 Zhaojin Mining Industry is currently mispriced by the market.
-
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Zhaojin Mining Industry? 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.