Shanghai Industrial Holdings Limited (HKG:363): What Does The Future Look Like?
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Looking at Shanghai Industrial Holdings Limited's (HKG:363) earnings update in December 2018, analysts seem fairly confident, as a 5.4% increase in profits is expected in the upcoming year, relative to the past 5-year average growth rate of 4.0%. With trailing-twelve-month net income at current levels of HK$3.3b, we should see this rise to HK$3.5b in 2020. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Shanghai Industrial Holdings in the longer term. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
Check out our latest analysis for Shanghai Industrial Holdings
How will Shanghai Industrial Holdings perform in the near future?
Longer term expectations from the 3 analysts covering 363’s stock is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.
From the current net income level of HK$3.3b and the final forecast of HK$4.0b by 2022, the annual rate of growth for 363’s earnings is 6.5%. EPS reaches HK$3.8 in the final year of forecast compared to the current HK$3.07 EPS today. In 2022, 363's profit margin will have expanded from 11% to 16%.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For Shanghai Industrial Holdings, I've compiled three fundamental factors you should further examine:
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 Shanghai Industrial 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 Shanghai Industrial 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.
