Yahoo Finance China Yongda Automobiles Services Holdings Limited (HKG:3669): Immense Growth Potential?
The latest earnings announcement China Yongda Automobiles Services Holdings Limited (HKG:3669) released in December 2018 showed that the company faced a substantial headwind with earnings deteriorating by -17%. Today I want to provide a brief commentary on how market analysts predict China Yongda Automobiles Services Holdings's earnings growth trajectory over the next couple of years and whether the future looks brighter. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
View our latest analysis for China Yongda Automobiles Services Holdings
Analysts' expectations for next year seems buoyant, with earnings increasing by a robust 22%. This growth seems to continue into the following year with rates arriving at double digit 51% compared to today’s earnings, and finally hitting CN¥2.1b by 2022.
Even though it is informative knowing the growth each year relative to today’s value, it may be more insightful gauging the rate at which the business is moving on average every year. The advantage of this technique is that we can get a better picture of the direction of China Yongda Automobiles Services 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 put a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 18%. This means, we can presume China Yongda Automobiles Services Holdings will grow its earnings by 18% every year for the next few years.
Next Steps:
For China Yongda Automobiles Services Holdings, I've put together 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.
Future Earnings: How does 3669'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 3669? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
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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.
