Looking at Xinyi Solar Holdings Limited's (HKG:968) earnings update on 31 December 2018, analysts seem fairly confident, with earnings growth rate expected to be 31% in the upcoming year, relative to the past five-year average earnings growth of 32% per year. With trailing-twelve-month net income at current levels of HK$1.9b, we should see this rise to HK$2.4b in 2020. Below is a brief commentary on the longer term outlook the market has for Xinyi Solar Holdings. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.

See our latest analysis for Xinyi Solar Holdings

How will Xinyi Solar Holdings perform in the near future?

Over the next three years, it seems the consensus view of the 21 analysts covering 968 is skewed towards the positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly 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 968's earnings growth over these next few years.

By 2022, 968's earnings should reach HK$3.3b, from current levels of HK$1.9b, resulting in an annual growth rate of 18%. EPS reaches HK$0.42 in the final year of forecast compared to the current HK$0.25 EPS today. In 2022, 968's profit margin will have expanded from 24% to 26%.

Next Steps:

Future outlook is only one aspect when you're building an investment case for a stock. For Xinyi Solar Holdings, I've compiled three fundamental aspects you should further examine:

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 Xinyi Solar Holdings 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 Xinyi Solar Holdings is currently mispriced by the market.

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