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What Are Analysts Saying About The Future Of China Yongda Automobiles Services Holdings Limited's (HKG:3669)?

Simply Wall St

In December 2018, China Yongda Automobiles Services Holdings Limited (HKG:3669) announced its earnings update. Overall, analysts seem cautiously optimistic, with earnings growth rate expected to be 23% next year, which is within range of the past five-year average earnings growth of 25%. Presently, with latest-twelve-month earnings at CN¥1.3b, we should see this growing to CN¥1.5b by 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for China Yongda Automobiles Services Holdings in the longer term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.

See our latest analysis for China Yongda Automobiles Services Holdings

How is China Yongda Automobiles Services Holdings going to perform in the near future?

The 16 analysts covering 3669 view its longer term outlook with a positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. I've plotted out each year's earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of 3669's earnings growth over these next few years.

SEHK:3669 Past and Future Earnings, August 14th 2019

This results in an annual growth rate of 20% based on the most recent earnings level of CN¥1.3b to the final forecast of CN¥2.3b by 2022. EPS reaches CN¥1.23 in the final year of forecast compared to the current CN¥0.68 EPS today. In 2022, 3669's profit margin will have expanded from 2.3% to 3.2%.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For China Yongda Automobiles Services Holdings, there are 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 China Yongda Automobiles Services 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 China Yongda Automobiles Services Holdings is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of China Yongda Automobiles Services 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.