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Based on Beijing Urban Construction Design & Development Group Co., Limited’s (HKG:1599) earnings update in December 2018, analyst consensus outlook appear cautiously optimistic, with earnings expected to grow by 18% in the upcoming year against the past 5-year average growth rate of 15%. Presently, with latest-twelve-month earnings at CN¥562m, we should see this growing to CN¥661m by 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
What can we expect from Beijing Urban Construction Design & Development Group in the longer term?
The longer term view from the 3 analysts covering 1599 is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To get an idea of the overall earnings growth trend for 1599, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
From the current net income level of CN¥562m and the final forecast of CN¥852m by 2022, the annual rate of growth for 1599’s earnings is 15%. EPS reaches CN¥0.63 in the final year of forecast compared to the current CN¥0.42 EPS today. As revenues is expected to outpace earnings, analysts expect margins to contract from the current 7.8% to 7.3% by the end of 2022.
Future outlook is only one aspect when you’re building an investment case for a stock. For Beijing Urban Construction Design & Development Group, there are three relevant 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.
- Future Earnings: How does Beijing Urban Construction Design & Development Group’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.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Beijing Urban Construction Design & Development Group? 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 firstname.lastname@example.org. 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.