Yahoo Finance What Do Analysts Think About China Resources Power Holdings Company Limited’s (HKG:836) Growth?
Since China Resources Power Holdings Company Limited (HKG:836) released its earnings in June 2018, it seems that analyst forecasts are fairly optimistic, as a 33.7% increase in profits is expected in the upcoming year, against the past 5-year average growth rate of -16.6%. Currently with trailing-twelve-month earnings of HK$5.73b, we can expect this to reach HK$7.66b by 2019. Below is a brief commentary around China Resources Power Holdings’s earnings outlook going forward, which may give you a sense of market sentiment for the company. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
View our latest analysis for China Resources Power Holdings
What can we expect from China Resources Power Holdings in the longer term?
The longer term expectations from the 15 analysts of 836 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.
This results in an annual growth rate of 14.5% based on the most recent earnings level of HK$4.62b to the final forecast of HK$7.59b by 2021. This leads to an EPS of HK$1.95 in the final year of projections relative to the current EPS of HK$0.97. The bottom-line growth seems to be caused by cost-cutting initiatives, since top-line is predicted to rise at a slower pace than earnings. With a current profit margin of 6.3%, this movement will result in a margin of 9.9% by 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For China Resources Power Holdings, I’ve put together three key factors you should look at:
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 China Resources Power 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 China Resources Power Holdings is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of China Resources Power 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!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
