Yahoo Finance Times China Holdings Limited (HKG:1233): What Are The Future Prospects?
Times China Holdings Limited's (HKG:1233) most recent earnings update in December 2018 showed that the company gained from a strong tailwind, leading to a high double-digit earnings growth of 65%. Investors may find it useful to understand how market analysts view Times China Holdings's earnings growth trajectory over the next few years and whether the future looks even brighter than the past. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
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View our latest analysis for Times China Holdings
Market analysts' consensus outlook for the coming year seems buoyant, with earnings growing by a robust 18%. This growth seems to continue into the following year with rates arriving at double digit 48% compared to today’s earnings, and finally hitting CN¥7.8b by 2022.
Even though it’s helpful to be aware of the growth each year relative to today’s level, it may be more beneficial analyzing the rate at which the company is rising or falling every year, on average. The pro of this approach is that we can get a better picture of the direction of Times China Holdings's earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate this rate, I've appended 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 19%. This means that, we can anticipate Times China Holdings will grow its earnings by 19% every year for the next couple of years.
Next Steps:
For Times China Holdings, I've put together three essential aspects 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 1233 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 1233 is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of 1233? 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.
