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The most recent earnings release Logan Property Holdings Company Limited's (HKG:3380) announced in April 2019 revealed that the company experienced a robust tailwind, eventuating to a double-digit earnings growth of 26%. Below is my commentary, albeit very simple and high-level, on how market analysts predict Logan Property Holdings's earnings growth trajectory over the next couple of 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.
Check out our latest analysis for Logan Property Holdings
Market analysts' consensus outlook for the coming year seems optimistic, with earnings expanding by a robust 21%. This growth seems to continue into the following year with rates reaching double digit 52% compared to today’s earnings, and finally hitting CN¥15b by 2022.
Even though it is informative understanding the growth rate each year relative to today’s value, it may be more insightful evaluating the rate at which the business is rising or falling every year, on average. The benefit of this method is that we can get a bigger picture of the direction of Logan Property Holdings's earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute this rate, I've inserted a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 22%. This means, we can presume Logan Property Holdings will grow its earnings by 22% every year for the next couple of years.
Next Steps:
For Logan Property Holdings, I've compiled three important 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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Future Earnings: How does 3380's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.
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Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of 3380? 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.