What Should We Expect From Concord New Energy Group Limited's (HKG:182) Earnings In The Years Ahead?
In December 2018, Concord New Energy Group Limited (HKG:182) announced its latest earnings update, which signalled that the business experienced a significant tailwind, more than doubling its earnings from the prior year. Below, I've laid out key numbers on how market analysts view Concord New Energy Group's earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in.
View our latest analysis for Concord New Energy Group
Market analysts' prospects for this coming year seems positive, with earnings increasing by a robust 32%. This growth seems to continue into the following year with rates arriving at double digit 52% compared to today’s earnings, and finally hitting CN¥966m by 2022.
While it is helpful to be aware of the growth each year relative to today’s level, it may be more beneficial to determine the rate at which the business is growing on average every year. The advantage of this method is that we can get a bigger picture of the direction of Concord New Energy Group's earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate this rate, I've appended a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 21%. This means, we can anticipate Concord New Energy Group will grow its earnings by 21% every year for the next couple of years.
Next Steps:
For Concord New Energy Group, I've compiled three pertinent aspects you should further research:
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 182'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 182? 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.
