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What Should We Expect From Beijing Chunlizhengda Medical Instruments Co., Ltd.'s (HKG:1858) Earnings Over The Next Year?

Simply Wall St

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After Beijing Chunlizhengda Medical Instruments Co., Ltd.'s (HKG:1858) earnings announcement in December 2018, analysts seem fairly confident, as a 33% increase in profits is expected in the upcoming year, compared with the past 5-year average growth rate of 23%. With trailing-twelve-month net income at current levels of CN¥106m, we should see this rise to CN¥141m in 2020. Below is a brief commentary around Beijing Chunlizhengda Medical Instruments's earnings outlook going forward, which may give you a sense of market sentiment for the company. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.

Check out our latest analysis for Beijing Chunlizhengda Medical Instruments

How is Beijing Chunlizhengda Medical Instruments going to perform in the near future?

Longer term expectations from the 1 analysts covering 1858’s stock is one of positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To understand the overall trajectory of 1858'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.

SEHK:1858 Past and Future Earnings, June 18th 2019

This results in an annual growth rate of 19% based on the most recent earnings level of CN¥106m to the final forecast of CN¥193m by 2022. This leads to an EPS of CN¥1.39 in the final year of projections relative to the current EPS of CN¥0.77. In 2022, 1858's profit margin will have expanded from 21% to 23%.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For Beijing Chunlizhengda Medical Instruments, I've put together three relevant 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 Beijing Chunlizhengda Medical Instruments 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 Beijing Chunlizhengda Medical Instruments is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Beijing Chunlizhengda Medical Instruments? 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.