What Should You Know About CGN New Energy Holdings Co., Ltd.'s (HKG:1811) Future?
Based on CGN New Energy Holdings Co., Ltd.'s (HKG:1811) earnings update in December 2018, it seems that analyst forecasts are fairly optimistic, with profits predicted to increase by 39% next year compared with the past 5-year average growth rate of -17%. Presently, with latest-twelve-month earnings at US$88m, we should see this growing to US$123m by 2020. Below is a brief commentary around CGN New Energy 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.
See our latest analysis for CGN New Energy Holdings
What can we expect from CGN New Energy Holdings in the longer term?
Over the next three years, it seems the consensus view of the 4 analysts covering 1811 is skewed towards the positive sentiment. Since forecasting becomes more difficult further into the future, broker analysts generally project out to around 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 1811's earnings growth over these next few years.
From the current net income level of US$88m and the final forecast of US$136m by 2022, the annual rate of growth for 1811’s earnings is 14%. This leads to an EPS of $0.030 in the final year of projections relative to the current EPS of $0.021. With a current profit margin of 6.5%, this movement will result in a margin of 9.1% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For CGN New Energy Holdings, I've compiled three pertinent aspects 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.
Future Earnings: How does CGN New Energy Holdings's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of CGN New Energy 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!
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