Since Regina Miracle International (Holdings) Limited (HKG:2199) released its earnings in March 2019, it seems that analyst forecasts are fairly optimistic, with profits predicted to increase by 36% next year compared with the past 5-year average growth rate of -7.7%. With trailing-twelve-month net income at current levels of HK$282m, we should see this rise to HK$385m in 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Regina Miracle International (Holdings) in the longer term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
What can we expect from Regina Miracle International (Holdings) in the longer term?
The 6 analysts covering 2199 view its longer term outlook with a 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 2199, 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.
This results in an annual growth rate of 29% based on the most recent earnings level of HK$282m to the final forecast of HK$691m by 2022. This leads to an EPS of HK$0.56 in the final year of projections relative to the current EPS of HK$0.23. In 2022, 2199's profit margin will have expanded from 4.5% to 7.8%.
Future outlook is only one aspect when you're building an investment case for a stock. For Regina Miracle International (Holdings), I've compiled three fundamental factors you should further research:
- 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 Regina Miracle 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 Regina Miracle International (Holdings) is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Regina Miracle 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 firstname.lastname@example.org. 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.