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What Are Analysts Expecting From Zhou Hei Ya International Holdings Company Limited (HKG:1458) Over The Next Year?

Simply Wall St

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Since Zhou Hei Ya International Holdings Company Limited (HKG:1458) released its earnings in December 2018, analyst consensus outlook appear pessimistic, with earnings expected to decline by 4.0% in the upcoming year relative to the past 5-year average growth rate of 11%. With trailing-twelve-month net income at current levels of CN¥540m, the consensus growth rate suggests that earnings will decline to CN¥518m by 2020. Below is a brief commentary around Zhou Hei Ya International Holdings's earnings outlook going forward, which may give you a sense of market sentiment for the company. Investors wanting to learn more about other aspects of the company should research its fundamentals here.

See our latest analysis for Zhou Hei Ya International Holdings

How is Zhou Hei Ya International Holdings going to perform in the near future?

The view from 8 analysts over the next three years is one of positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. 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.

SEHK:1458 Past and Future Earnings, July 19th 2019

By 2022, 1458's earnings should reach CN¥639m, from current levels of CN¥540m, resulting in an annual growth rate of 7.4%. EPS reaches CN¥0.27 in the final year of forecast compared to the current CN¥0.23 EPS today. Analysts are predicting this high revenue growth to squeeze profit margins over time, from 17% to 16% by the end of 2022.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For Zhou Hei Ya International Holdings, I've compiled three important factors you should look at:

  1. 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.
  2. Valuation: What is Zhou Hei Ya International 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 Zhou Hei Ya International Holdings is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Zhou Hei Ya International 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.