Yahoo Finance What Should You Know About Beijing Urban Construction Design & Development Group Co Limited’s (HKG:1599) Long Term Outlook?
The latest earnings update Beijing Urban Construction Design & Development Group Co Limited (HKG:1599) released in December 2017 revealed that the company benefited from a slight tailwind, eventuating to a single-digit earnings growth of 5.08%. Today I want to provide a brief commentary on how market analysts perceive Beijing Urban Construction Design & Development Group’s earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings. View out our latest analysis for Beijing Urban Construction Design & Development Group
Market analysts’ consensus outlook for next year seems optimistic, with earnings growing by a robust 35.76%. This growth seems to continue into the following year with rates reaching double digit 65.71% compared to today’s earnings, and finally hitting HK$1.10b by 2021.
Although it is informative knowing the rate of growth year by year relative to today’s figure, it may be more beneficial estimating the rate at which the earnings are growing every year, on average. The pro of this technique is that it ignores near term flucuations and accounts for the overarching direction of Beijing Urban Construction Design & Development Group’s earnings trajectory over time, 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 24.85%. This means, we can anticipate Beijing Urban Construction Design & Development Group will grow its earnings by 24.85% every year for the next few years.
Next Steps:
For Beijing Urban Construction Design & Development Group, there are 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 1599 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 1599 is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of 1599? 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 pass 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.
