HCR Co., Ltd's (SHSE:688500) Shares May Have Run Too Fast Too Soon
Aug 23
Chinese (SSE) Professional Services Industry Analysis
UpdatedAug 24, 2024
DataAggregated Company Financials
Companies53
- 7D-4.3%
- 3M-17.5%
- 1Y-33.4%
- YTD-25.7%
Over the last 7 days, the Professional Services industry has dropped 5.8%, driven by pullbacks in Shenzhen Urban Transport Planning Center and Centre Testing International Group of 8.3% and 4.3%, respectively. Meanwhile, GRG Metrology & Test Group actually outperformed within the industry, gaining 9.0% in the last week. However, the industry is down 34% over the past year. As for the next few years, earnings are expected to grow by 26% per annum.
Industry Valuation and Performance
Has the Chinese Professional Services Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sat, 24 Aug 2024 | CN¥183.8b | CN¥162.5b | CN¥4.6b | 34.1x | 39.7x | 1.1x |
| Mon, 22 Jul 2024 | CN¥193.7b | CN¥162.5b | CN¥4.6b | 32.3x | 41.9x | 1.2x |
| Wed, 19 Jun 2024 | CN¥212.9b | CN¥162.5b | CN¥4.6b | 36.4x | 46.1x | 1.3x |
| Fri, 17 May 2024 | CN¥232.1b | CN¥162.4b | CN¥4.6b | 39.9x | 50.2x | 1.4x |
| Sun, 14 Apr 2024 | CN¥220.1b | CN¥123.8b | CN¥5.7b | 33.6x | 39x | 1.8x |
| Tue, 12 Mar 2024 | CN¥215.4b | CN¥122.6b | CN¥5.5b | 33.5x | 39.5x | 1.8x |
| Thu, 08 Feb 2024 | CN¥180.7b | CN¥122.6b | CN¥5.5b | 26.6x | 32.7x | 1.5x |
| Sat, 06 Jan 2024 | CN¥227.5b | CN¥116.8b | CN¥5.7b | 39.1x | 39.7x | 1.9x |
| Mon, 04 Dec 2023 | CN¥244.8b | CN¥116.8b | CN¥5.7b | 44x | 42.7x | 2.1x |
| Wed, 01 Nov 2023 | CN¥220.6b | CN¥115.6b | CN¥5.7b | 35.4x | 38.6x | 1.9x |
| Fri, 29 Sep 2023 | CN¥240.2b | CN¥115.1b | CN¥6.0b | 39.5x | 40.1x | 2.1x |
| Sun, 27 Aug 2023 | CN¥247.0b | CN¥113.5b | CN¥6.0b | 40x | 41.1x | 2.2x |
| Tue, 25 Jul 2023 | CN¥251.7b | CN¥111.4b | CN¥6.1b | 40.5x | 41.4x | 2.3x |
| Thu, 22 Jun 2023 | CN¥251.6b | CN¥110.9b | CN¥6.0b | 41.6x | 42.1x | 2.3x |
| Sat, 20 May 2023 | CN¥245.8b | CN¥110.6b | CN¥5.8b | 40.6x | 42x | 2.2x |
| Mon, 17 Apr 2023 | CN¥248.2b | CN¥106.7b | CN¥1.6b | 39.2x | 156.3x | 2.3x |
| Wed, 15 Mar 2023 | CN¥239.9b | CN¥104.4b | CN¥1.7b | 40.3x | 145.3x | 2.3x |
| Fri, 10 Feb 2023 | CN¥240.8b | CN¥104.3b | CN¥1.6b | 38.8x | 147.9x | 2.3x |
| Sun, 08 Jan 2023 | CN¥224.4b | CN¥103.5b | CN¥1.5b | 38.5x | 145.2x | 2.2x |
| Tue, 06 Dec 2022 | CN¥232.3b | CN¥103.5b | CN¥1.5b | 39.9x | 150.3x | 2.2x |
| Thu, 03 Nov 2022 | CN¥210.1b | CN¥100.9b | CN¥247.2m | 34.8x | 850.1x | 2.1x |
| Sat, 01 Oct 2022 | CN¥201.5b | CN¥101.2b | CN¥1.5b | 31x | 130.6x | 2x |
| Mon, 29 Aug 2022 | CN¥217.1b | CN¥128.5b | CN¥3.8b | 36.5x | 56.9x | 1.7x |
| Wed, 27 Jul 2022 | CN¥216.2b | CN¥87.4b | CN¥1.5b | 38.4x | 141.6x | 2.5x |
| Fri, 24 Jun 2022 | CN¥206.7b | CN¥87.2b | CN¥1.5b | 36.3x | 141.5x | 2.4x |
| Sun, 22 May 2022 | CN¥202.0b | CN¥86.9b | CN¥1.4b | 35.8x | 145.5x | 2.3x |
| Tue, 19 Apr 2022 | CN¥198.9b | CN¥86.7b | CN¥4.8b | 36.6x | 41.3x | 2.3x |
| Thu, 17 Mar 2022 | CN¥195.9b | CN¥86.2b | CN¥5.0b | 35.9x | 39.3x | 2.3x |
| Sat, 12 Feb 2022 | CN¥208.2b | CN¥84.7b | CN¥4.9b | 37.7x | 42.2x | 2.5x |
| Mon, 10 Jan 2022 | CN¥218.1b | CN¥83.5b | CN¥4.8b | 41.3x | 45.7x | 2.6x |
| Wed, 08 Dec 2021 | CN¥216.7b | CN¥83.9b | CN¥4.8b | 40.1x | 44.9x | 2.6x |
| Fri, 05 Nov 2021 | CN¥216.4b | CN¥83.9b | CN¥4.8b | 37.4x | 44.8x | 2.6x |
| Sun, 03 Oct 2021 | CN¥205.7b | CN¥80.3b | CN¥4.9b | 38.1x | 41.7x | 2.6x |
| Tue, 31 Aug 2021 | CN¥214.7b | CN¥80.4b | CN¥5.0b | 40.3x | 43.3x | 2.7x |
Price to Earnings Ratio
43.3x
Current Industry PE
- Investors are pessimistic on the Chinese Professional Services 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 39.8x which is lower than its 3-year average PE of 77.2x.
- The 3-year average PS ratio of 2.1x is higher than the industry's current PS ratio of 1.1x.
Past Earnings Growth
- The earnings for companies in the Professional Services industry have declined 2.3% per year over the last three years.
- Meanwhile revenues for these companies have grown 26% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the Chinese Industrials industry?
| CN Market | -2.33% | |
| Industrials | -2.05% | |
| Professional Services | -4.25% | |
| Research and Consulting Services | -4.09% | |
| HR Services | -5.47% | |
Industry PE
- Investors are most optimistic about the Research and Consulting Services industry even though it's trading below its 3-year average PE ratio of 95.9x.
- Analysts are expecting annual earnings growth of 27.9%, which is higher than its past year's earnings growth of 1.6% per year.
- Investors are most pessimistic about the HR Services industry, which is trading below its 3-year average of 30.0x.
Forecasted Growth
- Analysts are most optimistic on the Research and Consulting Services industry, expecting annual earnings growth of 28% over the next 5 years.
- This is better than its past earnings growth rate of 1.6% per year.
- In contrast, the HR Services industry is expected to see its earnings grow by 17% 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 | |
|---|---|---|---|---|---|
| 002967 GRG Metrology & Test Group | CN¥13.08 | 9.0% +CN¥621.2m | -12.3% | PE34.4x | |
| 688500 HCR | CN¥34.68 | 12.7% +CN¥282.4m | 102.0% | PS4.8x | |
| 301270 Beijing Hanyi Innovation Technology | CN¥25.66 | 8.6% +CN¥203.0m | -43.6% | PE79.4x | |
| 300492 Huatu Cendes | CN¥71.77 | 1.6% +CN¥158.7m | 18.9% | PS10.9x |
