Zhejiang Weixing Industrial Development (SZSE:002003) Strong Profits May Be Masking Some Underlying Issues
Apr 25
Chinese (SSE) Luxury Industry Analysis
UpdatedApr 26, 2024
DataAggregated Company Financials
Companies108
- 7D-0.9%
- 3M-4.2%
- 1Y-7.9%
- YTD-8.1%
Over the last 7 days, the Luxury industry has dropped 1.2%, driven by Huali Industrial Group declining 4.8%. Overall the industry is down 7.7% in 12 months. As for the next few years, earnings are expected to grow by 24% per annum.
Industry Valuation and Performance
Has the Chinese Luxury Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 26 Apr 2024 | CN¥538.9b | CN¥445.4b | CN¥17.1b | 23x | 31.6x | 1.2x |
| Sun, 24 Mar 2024 | CN¥559.5b | CN¥451.6b | CN¥16.7b | 24.2x | 33.6x | 1.2x |
| Tue, 20 Feb 2024 | CN¥522.9b | CN¥449.9b | CN¥16.3b | 22.3x | 32.1x | 1.2x |
| Thu, 18 Jan 2024 | CN¥584.9b | CN¥450.5b | CN¥15.9b | 29.1x | 36.7x | 1.3x |
| Sat, 16 Dec 2023 | CN¥603.4b | CN¥450.6b | CN¥16.0b | 28.7x | 37.7x | 1.3x |
| Mon, 13 Nov 2023 | CN¥596.6b | CN¥450.2b | CN¥16.0b | 27.8x | 37.4x | 1.3x |
| Wed, 11 Oct 2023 | CN¥594.7b | CN¥448.1b | CN¥15.0b | 28.2x | 39.6x | 1.3x |
| Fri, 08 Sep 2023 | CN¥605.4b | CN¥447.8b | CN¥14.9b | 28.8x | 40.6x | 1.4x |
| Sun, 06 Aug 2023 | CN¥622.6b | CN¥443.6b | CN¥14.4b | 28.1x | 43.2x | 1.4x |
| Tue, 04 Jul 2023 | CN¥627.1b | CN¥443.5b | CN¥14.5b | 30.2x | 43.3x | 1.4x |
| Thu, 01 Jun 2023 | CN¥596.1b | CN¥444.0b | CN¥14.6b | 28.6x | 41x | 1.3x |
| Sat, 29 Apr 2023 | CN¥620.7b | CN¥446.1b | CN¥16.3b | 27.9x | 38.2x | 1.4x |
| Mon, 27 Mar 2023 | CN¥634.4b | CN¥452.1b | CN¥18.3b | 29.1x | 34.7x | 1.4x |
| Wed, 22 Feb 2023 | CN¥646.6b | CN¥450.7b | CN¥18.3b | 29.9x | 35.3x | 1.4x |
| Fri, 20 Jan 2023 | CN¥628.6b | CN¥450.7b | CN¥18.3b | 27.9x | 34.3x | 1.4x |
| Sun, 18 Dec 2022 | CN¥612.0b | CN¥450.2b | CN¥18.3b | 28.8x | 33.5x | 1.4x |
| Tue, 15 Nov 2022 | CN¥567.8b | CN¥448.2b | CN¥18.2b | 27x | 31.2x | 1.3x |
| Thu, 13 Oct 2022 | CN¥545.8b | CN¥443.7b | CN¥19.2b | 22.4x | 28.4x | 1.2x |
| Sat, 10 Sep 2022 | CN¥597.2b | CN¥444.2b | CN¥19.4b | 21.7x | 30.8x | 1.3x |
| Mon, 08 Aug 2022 | CN¥596.0b | CN¥448.2b | CN¥21.7b | 21.3x | 27.5x | 1.3x |
| Wed, 06 Jul 2022 | CN¥637.1b | CN¥446.3b | CN¥21.5b | 22.1x | 29.6x | 1.4x |
| Fri, 03 Jun 2022 | CN¥612.2b | CN¥446.5b | CN¥22.5b | 21.2x | 27.2x | 1.4x |
| Sun, 01 May 2022 | CN¥570.6b | CN¥446.9b | CN¥20.5b | 20.6x | 27.8x | 1.3x |
| Tue, 29 Mar 2022 | CN¥684.8b | CN¥445.0b | CN¥19.3b | 20.1x | 35.4x | 1.5x |
| Thu, 24 Feb 2022 | CN¥772.0b | CN¥439.2b | CN¥18.9b | 22.4x | 40.7x | 1.8x |
| Sat, 22 Jan 2022 | CN¥762.1b | CN¥438.3b | CN¥18.6b | 23.5x | 40.9x | 1.7x |
| Mon, 20 Dec 2021 | CN¥799.7b | CN¥437.2b | CN¥18.6b | 22.3x | 43x | 1.8x |
| Wed, 17 Nov 2021 | CN¥765.4b | CN¥433.2b | CN¥17.6b | 22x | 43.6x | 1.8x |
| Fri, 15 Oct 2021 | CN¥760.1b | CN¥413.4b | CN¥16.4b | 25.7x | 46.2x | 1.8x |
| Sun, 12 Sep 2021 | CN¥770.5b | CN¥411.0b | CN¥16.0b | 27.2x | 48.1x | 1.9x |
| Tue, 10 Aug 2021 | CN¥721.0b | CN¥410.4b | CN¥15.9b | 24.9x | 45.3x | 1.8x |
| Mon, 03 May 2021 | CN¥677.5b | CN¥382.2b | CN¥12.7b | 23.1x | 53.3x | 1.8x |
Price to Earnings Ratio
53.3x
Current Industry PE
- Investors are pessimistic on the Chinese Luxury industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 31.7x which is lower than its 3-year average PE of 37.8x.
- The 3-year average PS ratio of 1.5x is higher than the industry's current PS ratio of 1.2x.
Past Earnings Growth
- The earnings for companies in the Luxury industry have grown 10% per year over the last three years.
- Revenues for these companies have grown 5.2% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the Chinese Consumer Discretionary industry?
| CN Market | -0.29% | |
| Consumer Discretionary | -0.73% | |
| Luxury | -0.95% | |
| Textiles | 0.80% | |
| Apparel, Accessories and Luxury Goods | -1.01% | |
| Footwear | -4.52% | |
Industry PE
- Investors are most optimistic about the Footwear industry even though it's trading below its 3-year average PE ratio of 65.5x.
- Analysts are expecting annual earnings growth of 14.0%, which is higher than its past year's earnings decline of 0.9% per year.
- Investors are most pessimistic about the Apparel, Accessories and Luxury Goods industry, which is trading below its 3-year average of 44.6x.
Forecasted Growth
- Analysts are most optimistic on the Textiles industry, expecting annual earnings growth of 30% over the next 5 years.
- This is better than its past earnings decline of 0.7% per year.
- In contrast, the Footwear industry is expected to see its earnings grow by 14% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| 2563 Zhejiang Semir Garment | CN¥6.30 | 2.4% +CN¥404.1m | 3.1% | PE15.1x | |
| 2042 Huafu Fashion | CN¥4.32 | 5.9% +CN¥393.5m | 41.6% | PS0.6x | |
| 301077 Zhejiang Chinastars New Materials Group | CN¥19.63 | 15.7% +CN¥320.4m | -6.9% | PE24.2x | |
| 301177 DR | CN¥23.92 | 3.1% +CN¥288.0m | -46.0% | PE310x | |
| 603511 Aimer | CN¥13.66 | 5.1% +CN¥264.0m | -9.7% | PE21x |
