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Shanghai Jin Jiang International Hotels (Group) Company Limited (HKG:2006): What Are The Future Prospects?

Simply Wall St

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Since Shanghai Jin Jiang International Hotels (Group) Company Limited (HKG:2006) released its earnings in December 2018, analyst consensus outlook appear cautiously subdued, as a 2.3% rise in profits is expected in the upcoming year, compared with the higher past 5-year average growth rate of 4.0%. By 2020, we can expect Shanghai Jin Jiang International Hotels (Group)’s bottom line to reach CN¥779m, a jump from the current trailing-twelve-month of CN¥762m. In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Shanghai Jin Jiang International Hotels (Group) in the longer term. For those keen to understand more about other aspects of the company, you can research its fundamentals here.

Check out our latest analysis for Shanghai Jin Jiang International Hotels (Group)

Exciting times ahead?

The longer term expectations from the 5 analysts of 2006 is tilted towards the positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To understand the overall trajectory of 2006'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:2006 Past and Future Earnings, May 30th 2019

By 2022, 2006's earnings should reach CN¥1.1b, from current levels of CN¥762m, resulting in an annual growth rate of 11%. EPS reaches CN¥0.19 in the final year of forecast compared to the current CN¥0.14 EPS today. In 2022, 2006's profit margin will have expanded from 3.7% to 4.6%.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For Shanghai Jin Jiang International Hotels (Group), there are three important factors 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 Shanghai Jin Jiang International Hotels (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 Shanghai Jin Jiang International Hotels (Group) is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Shanghai Jin Jiang International Hotels (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!

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.