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Kingboard Laminates Holdings Limited (HKG:1888): What Can We Expect In The Future?

Simply Wall St

Kingboard Laminates Holdings Limited's (HKG:1888) most recent earnings announcement in April 2019 suggested that the business faced a immense headwind with earnings falling by -14%. Below, I've laid out key growth figures on how market analysts view Kingboard Laminates Holdings's earnings growth outlook over the next few years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.

Check out our latest analysis for Kingboard Laminates Holdings

Analysts' expectations for the coming year seems pessimistic, with earnings falling by a double-digit -29%. However, the following year shows a contrast, with earnings growth becoming positive at 9.3% compared to today's earnings level. Earnings are then expected to fall to HK$2.6b in 2022.

SEHK:1888 Past and Future Earnings, August 9th 2019

Although it’s helpful to understand the rate of growth year by year relative to today’s level, it may be more valuable analyzing the rate at which the earnings are moving every year, on average. The pro of this approach is that it ignores near term flucuations and accounts for the overarching direction of Kingboard Laminates Holdings's earnings trajectory over time, fluctuate up and down. To calculate this rate, I put a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is -2.7%. This means, we can anticipate Kingboard Laminates Holdings will chip away at a rate of -2.7% every year for the next few years.

Next Steps:

For Kingboard Laminates Holdings, I've compiled three fundamental 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 1888 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 1888 is currently mispriced by the market.
  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of 1888? 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.