After Harbin Bank Co., Ltd.'s (HKG:6138) earnings announcement in December 2018, analysts seem cautiously bearish, as a 6.4% rise in profits is expected in the upcoming year, compared with the higher past 5-year average growth rate of 9.4%. With trailing-twelve-month net income at current levels of CN¥5.5b, we should see this rise to CN¥5.9b in 2020. I will provide a brief commentary around the figures and analyst expectations in the near term. Investors wanting to learn more about other aspects of the company should research its fundamentals here.

See our latest analysis for Harbin Bank

Exciting times ahead?

Longer term expectations from the 1 analysts covering 6138’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 6138'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.

This results in an annual growth rate of 7.0% based on the most recent earnings level of CN¥5.5b to the final forecast of CN¥6.8b by 2022. EPS reaches CN¥0.62 in the final year of forecast compared to the current CN¥0.50 EPS today. Analysts are predicting this high revenue growth to squeeze profit margins over time, from 47% to 38% by the end of 2022.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For Harbin Bank, 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 Harbin Bank 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 Harbin Bank is currently mispriced by the market.

3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Harbin Bank? 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.