On 31 December 2018, AAC Technologies Holdings Inc. (HKG:2018) announced its earnings update. Overall,
analyst consensus outlook appear cautiously subdued,
with earnings expected to grow by -15% in the upcoming year
the higher past 5-year average growth rate of 17%.
By 2020, we can expect AAC Technologies Holdings’s bottom line to reach CN¥3.2b, a jump from the current trailing-twelve-month of CN¥3.8b.
Below is a brief commentary on the longer term outlook the market has for AAC Technologies Holdings.
For those keen to understand more about other aspects of the company, you can
research its fundamentals here.
Can we expect AAC Technologies Holdings to keep growing?
Longer term expectations from the 28 analysts covering 2018’s stock is one of
Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point.
To understand the overall trajectory of 2018’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.
From the current net income level of CN¥3.8b and the final forecast of CN¥4.6b by 2022, the annual rate of growth for 2018’s earnings is 6.8%.
This leads to an EPS of CN¥3.65 in the final year of projections relative to the current EPS of
With a current profit margin of 21%, this movement will result in a margin of 22% by 2022.
Future outlook is only one aspect when you’re building an investment case for a stock. For AAC Technologies Holdings,
I’ve put together
- 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 AAC Technologies 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 AAC Technologies Holdings is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of AAC Technologies 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 firstname.lastname@example.org. 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.
The easiest way to discover new investment ideas
Save hours of research when discovering your next investment with Simply Wall St. Looking for companies potentially undervalued based on their future cash flows? Or maybe you’re looking for sustainable dividend payers or high growth potential stocks. Customise your search to easily find new investment opportunities that match your investment goals. And the best thing about it? It’s FREE. Click here to learn more.