Yahoo Finance China Resources Land Limited (HKG:1109): What Can We Expect From This High Growth Stock?
The most recent earnings announcement China Resources Land Limited’s (HKG:1109) released in December 2017 indicated that the business gained from a strong tailwind, leading to a double-digit earnings growth of 18.03%. Investors may find it useful to understand how market analysts predict China Resources Land’s earnings growth trajectory over the next few 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 out our latest analysis for China Resources Land
Analysts’ expectations for this coming year seems buoyant, with earnings growing by a robust 12.24%. This growth seems to continue into the following year with rates reaching double digit 32.26% compared to today’s earnings, and finally hitting HK$35.53b by 2021.
Even though it is helpful to understand the growth each year relative to today’s figure, it may be more insightful gauging the rate at which the earnings are rising or falling every year, on average. The benefit of this technique is that it ignores near term flucuations and accounts for the overarching direction of China Resources Land’s earnings trajectory over time, which may be more relevant for long term investors. To compute this rate, I’ve inserted a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 14.61%. This means, we can anticipate China Resources Land will grow its earnings by 14.61% every year for the next few years.
Next Steps:
For China Resources Land, there are three fundamental 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.
Valuation: What is 1109 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 1109 is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of 1109? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
