U.S. Markets open in 6 hrs 34 mins

How Do Analysts See Lonking Holdings Limited (HKG:3339) Performing In The Next 12 Months?

Simply Wall St

Want to participate in a research study? Help shape the future of investing tools and earn a $60 gift card!

On 31 December 2018, Lonking Holdings Limited (HKG:3339) announced its earnings update. Overall, analysts seem fairly confident, with earnings expected to grow by 21% in the upcoming year, though this is comparatively lower than the historical 5-year average earnings growth of 31%. Currently with trailing-twelve-month earnings of CN¥1.1b, we can expect this to reach CN¥1.4b by 2020. Below is a brief commentary around Lonking 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.

Check out our latest analysis for Lonking Holdings

How will Lonking Holdings perform in the near future?

Over the next three years, it seems the consensus view of the 12 analysts covering 3339 is skewed towards the 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 3339, 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.

SEHK:3339 Past and Future Earnings, April 1st 2019

From the current net income level of CN¥1.1b and the final forecast of CN¥1.6b by 2022, the annual rate of growth for 3339’s earnings is 10%. EPS reaches CN¥0.38 in the final year of forecast compared to the current CN¥0.27 EPS today. In 2022, 3339's profit margin will have expanded from 9.6% to 11%.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For Lonking Holdings, I've compiled three essential aspects 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 Lonking 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 Lonking Holdings is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Lonking 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.