Investors Met With Slowing Returns on Capital At Zangge Mining (SZSE:000408)
Jan 18
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Chinese (SSE) Materials Sector Analysis
UpdatedJan 18, 2025
DataAggregated Company Financials
Companies806
- 7D4.4%
- 3M1.5%
- 1Y4.3%
- YTD1.9%
The Materials industry is up 2.0% in the last week, with Wanhua Chemical Group up 4.1%. During this same period, the Shenzhen Capchem Technology underperformed, falling 12%. Overall in the last year, the industry is flat. As for the next few years, earnings are expected to grow by 34% per annum.
Sector Valuation and Performance
Has the Chinese Materials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sat, 18 Jan 2025 | CN¥7.8t | CN¥8.2t | CN¥226.9b | 31.5x | 34.6x | 1x |
| Mon, 16 Dec 2024 | CN¥8.4t | CN¥8.2t | CN¥226.9b | 34.7x | 36.9x | 1x |
| Wed, 13 Nov 2024 | CN¥8.5t | CN¥8.2t | CN¥228.2b | 34.2x | 37.3x | 1x |
| Fri, 11 Oct 2024 | CN¥7.9t | CN¥8.4t | CN¥265.3b | 29.8x | 29.9x | 0.9x |
| Sun, 08 Sep 2024 | CN¥6.6t | CN¥8.4t | CN¥264.3b | 25x | 24.8x | 0.8x |
| Tue, 06 Aug 2024 | CN¥6.8t | CN¥8.4t | CN¥277.7b | 26x | 24.6x | 0.8x |
| Thu, 04 Jul 2024 | CN¥7.3t | CN¥8.4t | CN¥275.9b | 27.3x | 26.5x | 0.9x |
| Sat, 01 Jun 2024 | CN¥7.9t | CN¥8.4t | CN¥269.7b | 30.6x | 29.3x | 0.9x |
| Mon, 29 Apr 2024 | CN¥7.9t | CN¥8.4t | CN¥295.7b | 29.8x | 26.8x | 0.9x |
| Wed, 27 Mar 2024 | CN¥7.7t | CN¥8.4t | CN¥316.5b | 29.1x | 24.4x | 0.9x |
| Fri, 23 Feb 2024 | CN¥7.3t | CN¥8.4t | CN¥309.4b | 27x | 23.7x | 0.9x |
| Sun, 21 Jan 2024 | CN¥7.5t | CN¥8.4t | CN¥303.9b | 30.9x | 24.6x | 0.9x |
| Tue, 19 Dec 2023 | CN¥7.8t | CN¥8.3t | CN¥300.5b | 33.6x | 26x | 0.9x |
| Thu, 16 Nov 2023 | CN¥8.4t | CN¥8.3t | CN¥300.1b | 35.3x | 28.1x | 1x |
| Sat, 14 Oct 2023 | CN¥8.4t | CN¥8.3t | CN¥312.8b | 32.3x | 26.7x | 1x |
| Mon, 11 Sep 2023 | CN¥8.6t | CN¥8.3t | CN¥324.3b | 33.4x | 26.6x | 1x |
| Wed, 09 Aug 2023 | CN¥9.0t | CN¥8.5t | CN¥397.9b | 29.7x | 22.6x | 1.1x |
| Fri, 07 Jul 2023 | CN¥8.8t | CN¥8.5t | CN¥399.3b | 30.5x | 22x | 1x |
| Sun, 04 Jun 2023 | CN¥8.8t | CN¥8.4t | CN¥398.1b | 29.9x | 22.2x | 1x |
| Tue, 02 May 2023 | CN¥9.1t | CN¥8.5t | CN¥417.6b | 29.9x | 21.8x | 1.1x |
| Thu, 30 Mar 2023 | CN¥9.5t | CN¥8.5t | CN¥509.9b | 28.5x | 18.7x | 1.1x |
| Sat, 25 Feb 2023 | CN¥10.2t | CN¥8.4t | CN¥509.2b | 30.6x | 20x | 1.2x |
| Mon, 23 Jan 2023 | CN¥10.0t | CN¥8.4t | CN¥513.4b | 29.1x | 19.4x | 1.2x |
| Wed, 21 Dec 2022 | CN¥9.4t | CN¥8.4t | CN¥513.2b | 27.3x | 18.3x | 1.1x |
| Fri, 18 Nov 2022 | CN¥9.7t | CN¥8.4t | CN¥512.3b | 28.6x | 19x | 1.2x |
| Sun, 16 Oct 2022 | CN¥9.6t | CN¥8.4t | CN¥572.9b | 26.2x | 16.8x | 1.1x |
| Tue, 13 Sep 2022 | CN¥10.6t | CN¥8.4t | CN¥571.1b | 28.6x | 18.5x | 1.3x |
| Thu, 11 Aug 2022 | CN¥10.8t | CN¥8.1t | CN¥580.4b | 29.3x | 18.7x | 1.3x |
| Sat, 09 Jul 2022 | CN¥10.9t | CN¥8.1t | CN¥574.3b | 27.8x | 18.9x | 1.3x |
| Mon, 06 Jun 2022 | CN¥10.0t | CN¥8.1t | CN¥575.1b | 26.3x | 17.5x | 1.2x |
| Wed, 04 May 2022 | CN¥9.1t | CN¥8.0t | CN¥573.2b | 23.2x | 15.8x | 1.1x |
| Fri, 01 Apr 2022 | CN¥10.2t | CN¥7.5t | CN¥547.7b | 27.6x | 18.6x | 1.4x |
| Sun, 27 Feb 2022 | CN¥11.2t | CN¥7.1t | CN¥512.8b | 30.7x | 21.9x | 1.6x |
| Tue, 25 Jan 2022 | CN¥10.8t | CN¥7.1t | CN¥512.8b | 30.6x | 21.1x | 1.5x |
Price to Earnings Ratio
21.1x
Current Industry PE
- Investors are optimistic on the Chinese Materials industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 34.3x which is higher than its 3-year average PE of 23.3x.
- The 3-year average PS ratio of 1.1x is higher than the industry's current PS ratio of 0.95x.
Past Earnings Growth
- The earnings for companies in the Materials industry have declined 24% per year over the last three years.
- Meanwhile revenues for these companies have grown 4.7% 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 Materials sector?
| CN Market | 3.49% | |
| Materials | 4.37% | |
| Packaging | 4.52% | |
| Chemicals | 4.50% | |
| Paper and Forestry Products | 4.32% | |
| Basic Materials | 4.25% | |
| Metals and Mining | 4.16% | |
Industry PE
- Investors are most optimistic about the Basic Materials industry which is trading above its 3-year average PE ratio of 33.9x.
- Analysts are expecting annual earnings growth of 48.9%, which is higher than its past year's earnings decline of 22.9% per year.
- Investors are most pessimistic about the Metals and Mining industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 21.5x.
Forecasted Growth
- Analysts are most optimistic on the Basic Materials industry, expecting annual earnings growth of 49% over the next 5 years.
- This is better than its past earnings decline of 23% per year.
- In contrast, the Metals and Mining industry is expected to see its earnings grow by 25% 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 | |
|---|---|---|---|---|---|
| 600309 Wanhua Chemical Group | CN¥68.61 | 4.1% +CN¥8.5b | -2.3% | PE14.2x | |
| 002648 Satellite ChemicalLtd | CN¥20.30 | 7.6% +CN¥4.8b | 46.8% | PE13.5x | |
| 002460 Ganfeng Lithium Group | CN¥35.54 | 7.2% +CN¥4.8b | -14.4% | PS3.4x | |
| 000792 Qinghai Salt Lake IndustryLtd | CN¥16.79 | 5.6% +CN¥4.8b | 11.5% | PE16.5x | |
| 000807 Yunnan Aluminium | CN¥16.76 | 8.8% +CN¥4.7b | 58.0% | PE11x |
