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Will Tianyun International Holdings Limited’s (HKG:6836) Earnings Grow In The Years Ahead?

The latest earnings update Tianyun International Holdings Limited (HKG:6836) released in December 2017 revealed that the company experienced a slight headwind with earnings falling from HK$128.78m to HK$123.28m, a change of -4.27%. Investors may find it useful to understand how market analysts perceive Tianyun International Holdings’s earnings growth trajectory over the next few years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings. View out our latest analysis for Tianyun International Holdings

Analysts’ expectations for the upcoming year seems buoyant, with earnings growing by a robust 25.73%. This growth seems to continue into the following year with rates arriving at double digit 54.12% compared to today’s earnings, and finally hitting HK$222.91m by 2021.

SEHK:6836 Future Profit June 21st 18
SEHK:6836 Future Profit June 21st 18

Although it’s informative knowing the rate of growth year by year relative to today’s value, it may be more insightful evaluating the rate at which the business is rising or falling every year, on average. The advantage of this technique is that it ignores near term flucuations and accounts for the overarching direction of Tianyun International Holdings’s earnings trajectory over time, which may be more relevant for long term investors. To compute this rate, I put 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 19.27%. This means, we can anticipate Tianyun International Holdings will grow its earnings by 19.27% every year for the next couple of years.

Next Steps:

For Tianyun International Holdings, there are three pertinent factors you should further examine:

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  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 6836 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 6836 is currently mispriced by the market.

  3. Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of 6836? 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.