Why Investors Shouldn't Be Surprised By Hongfa Technology Co., Ltd.'s (SHSE:600885) Low P/E
Jun 20
Chinese (SSE) Electrical Industry Analysis
UpdatedJun 26, 2024
DataAggregated Company Financials
Companies302
- 7D-6.4%
- 3M-3.4%
- 1Y-21.1%
- YTD-6.1%
Over the last 7 days, the Electrical industry has dropped 4.7%, driven by a pullback from Contemporary Amperex Technology of 2.1%. On the other hand Keli Motor Group is actually up 11%. The industry has fallen 20% in the last year. Earnings are forecast to grow by 22% annually.
Industry Valuation and Performance
Has the Chinese Electrical Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Wed, 26 Jun 2024 | CN¥3.4t | CN¥2.1t | CN¥137.2b | 28.7x | 24.9x | 1.6x |
| Fri, 24 May 2024 | CN¥3.7t | CN¥2.1t | CN¥135.6b | 32.7x | 27.4x | 1.8x |
| Sun, 21 Apr 2024 | CN¥3.6t | CN¥2.1t | CN¥146.3b | 28.8x | 24.3x | 1.7x |
| Tue, 19 Mar 2024 | CN¥3.7t | CN¥2.1t | CN¥150.8b | 32x | 24.7x | 1.7x |
| Thu, 15 Feb 2024 | CN¥3.2t | CN¥2.2t | CN¥152.8b | 25.5x | 20.9x | 1.5x |
| Sat, 13 Jan 2024 | CN¥3.5t | CN¥2.2t | CN¥152.3b | 34.3x | 23.3x | 1.6x |
| Mon, 11 Dec 2023 | CN¥3.5t | CN¥2.1t | CN¥150.8b | 33.1x | 23.5x | 1.7x |
| Wed, 08 Nov 2023 | CN¥3.9t | CN¥2.1t | CN¥152.0b | 34.4x | 25.3x | 1.8x |
| Fri, 06 Oct 2023 | CN¥3.9t | CN¥2.1t | CN¥156.2b | 34.2x | 24.8x | 1.8x |
| Sun, 03 Sep 2023 | CN¥4.1t | CN¥2.1t | CN¥156.1b | 35.3x | 26.2x | 1.9x |
| Tue, 01 Aug 2023 | CN¥4.3t | CN¥2.1t | CN¥155.6b | 36.4x | 27.6x | 2.1x |
| Thu, 29 Jun 2023 | CN¥4.2t | CN¥2.0t | CN¥151.1b | 37.6x | 28x | 2.1x |
| Sat, 27 May 2023 | CN¥4.2t | CN¥2.0t | CN¥150.5b | 36.3x | 28x | 2.1x |
| Mon, 24 Apr 2023 | CN¥4.2t | CN¥1.9t | CN¥134.4b | 35.4x | 31.1x | 2.2x |
| Wed, 22 Mar 2023 | CN¥4.3t | CN¥1.8t | CN¥122.4b | 37.4x | 35.1x | 2.3x |
| Fri, 17 Feb 2023 | CN¥4.6t | CN¥1.7t | CN¥113.8b | 38x | 40.6x | 2.7x |
| Sun, 15 Jan 2023 | CN¥4.5t | CN¥1.7t | CN¥109.8b | 35.1x | 40.9x | 2.6x |
| Tue, 13 Dec 2022 | CN¥4.4t | CN¥1.7t | CN¥109.7b | 34.6x | 40.1x | 2.6x |
| Thu, 10 Nov 2022 | CN¥4.4t | CN¥1.7t | CN¥109.6b | 36.1x | 40.2x | 2.6x |
| Sat, 08 Oct 2022 | CN¥4.3t | CN¥1.6t | CN¥97.0b | 32x | 43.9x | 2.7x |
| Mon, 05 Sep 2022 | CN¥4.7t | CN¥1.6t | CN¥99.2b | 37.4x | 47.4x | 2.9x |
| Wed, 03 Aug 2022 | CN¥5.1t | CN¥1.5t | CN¥85.6b | 40.1x | 59.5x | 3.4x |
| Fri, 01 Jul 2022 | CN¥4.8t | CN¥1.5t | CN¥84.1b | 39.1x | 56.8x | 3.2x |
| Sun, 29 May 2022 | CN¥3.8t | CN¥1.5t | CN¥81.8b | 33x | 46.1x | 2.6x |
| Tue, 26 Apr 2022 | CN¥3.2t | CN¥1.4t | CN¥90.2b | 28.4x | 35.9x | 2.3x |
| Thu, 24 Mar 2022 | CN¥4.4t | CN¥1.3t | CN¥83.4b | 38.1x | 53.1x | 3.4x |
| Sat, 19 Feb 2022 | CN¥4.6t | CN¥1.3t | CN¥84.4b | 41.1x | 54.7x | 3.6x |
| Mon, 17 Jan 2022 | CN¥5.0t | CN¥1.3t | CN¥84.1b | 43.6x | 59.3x | 3.9x |
| Wed, 15 Dec 2021 | CN¥5.6t | CN¥1.3t | CN¥84.6b | 45.8x | 66.6x | 4.3x |
| Fri, 12 Nov 2021 | CN¥5.4t | CN¥1.3t | CN¥83.5b | 44.1x | 64.4x | 4.2x |
| Sun, 10 Oct 2021 | CN¥4.6t | CN¥1.2t | CN¥78.5b | 39.4x | 59x | 3.8x |
| Tue, 07 Sep 2021 | CN¥4.7t | CN¥1.2t | CN¥78.4b | 41.5x | 60.4x | 3.9x |
| Thu, 05 Aug 2021 | CN¥4.7t | CN¥1.2t | CN¥79.2b | 40.1x | 59.1x | 3.9x |
Price to Earnings Ratio
51.4x
Current Industry PE
- Investors are pessimistic on the Chinese Electrical 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 25.1x which is lower than its 3-year average PE of 40.7x.
- The 3-year average PS ratio of 2.7x is higher than the industry's current PS ratio of 1.6x.
Past Earnings Growth
- The earnings for companies in the Electrical industry have grown 21% per year over the last three years.
- Revenues for these companies have grown 21% 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 Industrials industry?
| CN Market | -4.73% | |
| Industrials | -5.16% | |
| Electrical | -6.38% | |
| Heavy Electrical Equipment | -5.65% | |
| Electrical Components | -6.53% | |
Industry PE
- Investors are most optimistic about the Heavy Electrical Equipment industry which is trading above its 3-year average PE ratio of 34.5x.
- Analysts are expecting annual earnings growth of 24.0%, which is higher than its past year's earnings growth of 4.7% per year.
- Investors are most pessimistic about the Electrical Components industry, which is trading below its 3-year average of 43.9x.
Forecasted Growth
- Analysts are most optimistic on the Heavy Electrical Equipment industry, expecting annual earnings growth of 24% over the next 5 years.
- This is better than its past earnings growth rate of 4.7% per year.
- In contrast, the Electrical Components industry is expected to see its earnings grow by 22% 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 | |
|---|---|---|---|---|---|
| 2892 Keli Motor Group | CN¥10.34 | 11.4% +CN¥659.1m | 11.3% | PE389.1x | |
| 301002 Shenzhen Sosen ElectronicsLtd | CN¥16.65 | 13.9% +CN¥249.4m | -16.8% | PE79.2x | |
| 300835 Sinomag Technology | CN¥26.40 | 6.3% +CN¥185.8m | -9.3% | PE35x | |
| 2806 Guangdong Huafeng New Energy TechnologyLtd | CN¥9.12 | 9.9% +CN¥155.9m | -23.9% | PS2.2x | |
| 2322 Ningbo Ligong Environment And Energy TechnologyLtd | CN¥15.61 | 2.4% +CN¥130.7m | 52.4% | PE21x |
