Yahoo Finance CK Infrastructure Holdings Limited (HKG:1038): What Are The Future Prospects?
On 31 December 2018, CK Infrastructure Holdings Limited (HKG:1038) released its earnings update. Generally, analysts seem cautiously optimistic, as a 13% increase in profits is expected in the upcoming year, compared with the past 5-year average growth rate of -22%. By 2020, we can expect CK Infrastructure Holdings’s bottom line to reach HK$12b, a jump from the current trailing-twelve-month of HK$10b. I will provide a brief commentary around the figures and analyst expectations in the near term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
Check out our latest analysis for CK Infrastructure Holdings
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Can we expect CK Infrastructure Holdings to keep growing?
Longer term expectations from the 10 analysts covering 1038’s stock is one of positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To get an idea of the overall earnings growth trend for 1038, 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 HK$10b and the final forecast of HK$12b by 2022, the annual rate of growth for 1038’s earnings is 6.9%. EPS reaches HK$4.86 in the final year of forecast compared to the current HK$4.14 EPS today. Margins are currently sitting at 139%, which is expected to expand to 186% by 2022.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For CK Infrastructure Holdings, I’ve put together three essential aspects 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 CK Infrastructure 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 CK Infrastructure Holdings is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of CK Infrastructure 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 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.
