As Vinda International Holdings Limited (HKG:3331) released its earnings announcement on 31 December 2018, analysts seem fairly confident, as a 26% increase in profits is expected in the upcoming year, relative to the past 5-year average growth rate of 6.1%. With trailing-twelve-month net income at current levels of HK$649m, we should see this rise to HK$817m in 2020. Below is a brief commentary around Vinda 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.
What can we expect from Vinda International Holdings in the longer term?
The longer term expectations from the 9 analysts of 3331 is tilted towards the positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. 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.
By 2022, 3331’s earnings should reach HK$1.1b, from current levels of HK$649m, resulting in an annual growth rate of 18%. EPS reaches HK$0.94 in the final year of forecast compared to the current HK$0.54 EPS today. Margins are currently sitting at 4.4%, which is expected to expand to 5.8% by 2022.
Future outlook is only one aspect when you’re building an investment case for a stock. For Vinda International Holdings, I’ve put together three important factors 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 Vinda 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 Vinda International Holdings is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Vinda 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 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.