Since Bosideng International Holdings Limited (HKG:3998) released its earnings in March 2019, analysts seem cautiously optimistic, with profits predicted to increase by 24% next year relative to the past 5-year average growth rate of 17%. Currently with trailing-twelve-month earnings of CN¥981m, we can expect this to reach CN¥1.2b by 2020. 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.
How will Bosideng International Holdings perform in the near future?
The 6 analysts covering 3998 view its longer term outlook with a positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around three years. To understand the overall trajectory of 3998's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
This results in an annual growth rate of 19% based on the most recent earnings level of CN¥981m to the final forecast of CN¥1.8b by 2022. EPS reaches CN¥0.16 in the final year of forecast compared to the current CN¥0.093 EPS today. Margins are currently sitting at 9.5%, which is expected to expand to 10.0% by 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For Bosideng International Holdings, there are three fundamental 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 Bosideng 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 Bosideng International Holdings is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Bosideng 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.