What Do Analysts Think About Chow Tai Fook Jewellery Group Limited’s (HKG:1929) Growth?
In March 2018, Chow Tai Fook Jewellery Group Limited (HKG:1929) announced its earnings update. Overall, the consensus outlook from analysts appear fairly confident, with earnings expected to grow by 21.2% in the upcoming year compared with the past 5-year average growth rate of -11.0%. With trailing-twelve-month net income at current levels of HK$4.09b, we should see this rise to HK$4.96b in 2019. Below is a brief commentary on the longer term outlook the market has for Chow Tai Fook Jewellery Group. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
View our latest analysis for Chow Tai Fook Jewellery Group
Can we expect Chow Tai Fook Jewellery Group to keep growing?
The 18 analysts covering 1929 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. 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 1929’s earnings growth over these next few years.
From the current net income level of HK$4.09b and the final forecast of HK$6.31b by 2021, the annual rate of growth for 1929’s earnings is 12.9%. This leads to an EPS of HK$0.63 in the final year of projections relative to the current EPS of HK$0.41. The primary reason for earnings growth is due to reduction in costs rather than purely top-line expansion as earnings is increasing at a faster rate. Margins is currently sitting at 6.9%, which is expected to expand to 8.4% by 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Chow Tai Fook Jewellery Group, there are three essential factors you should look at:
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 Chow Tai Fook Jewellery Group 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 Chow Tai Fook Jewellery Group is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Chow Tai Fook Jewellery Group? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
