Chinese (SSE) Real Estate Industry Analysis
UpdatedMay 15, 2022
DataAggregated Company Financials
Companies134
- 7D3.9%
- 3M-4.6%
- 1Y-10.5%
- YTD-4.4%
Over the last 7 days, the Real Estate industry has dropped 3.3%, driven by a pullback from China Merchants Shekou Industrial Zone Holdings of 1.9%. Meanwhile, Vantone Neo Development GroupLtd actually outperformed within the industry, gaining 17% in the last week. However, the industry is down 11% over the past year. As for the next few years, earnings are expected to grow by 18% per annum.
Industry Valuation and Performance
Has the Chinese Real Estate Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Sun, 15 May 2022 | CN¥1.7t | CN¥2.8t | CN¥40.6b | 19.5x |
| Tue, 12 Apr 2022 | CN¥2.0t | CN¥3.0t | CN¥119.3b | 16.6x |
| Thu, 10 Mar 2022 | CN¥1.7t | CN¥3.0t | CN¥144.2b | 12.2x |
| Sat, 05 Feb 2022 | CN¥1.8t | CN¥3.0t | CN¥148.7b | 12.6x |
| Mon, 03 Jan 2022 | CN¥1.8t | CN¥3.0t | CN¥158.4b | 13.6x |
| Wed, 01 Dec 2021 | CN¥1.7t | CN¥3.0t | CN¥159.2b | 12.3x |
| Fri, 29 Oct 2021 | CN¥1.6t | CN¥3.0t | CN¥180.3b | 11.2x |
| Sun, 26 Sep 2021 | CN¥1.8t | CN¥3.0t | CN¥181.8b | 12.7x |
| Tue, 24 Aug 2021 | CN¥1.7t | CN¥3.0t | CN¥181.9b | 12.5x |
| Wed, 30 Jun 2021 | CN¥1.8t | CN¥3.0t | CN¥181.9b | 13.9x |
| Sat, 03 Apr 2021 | CN¥1.9t | CN¥2.8t | CN¥197.1b | 14.3x |
| Tue, 05 Jan 2021 | CN¥2.0t | CN¥2.7t | CN¥200.3b | 15.7x |
| Fri, 09 Oct 2020 | CN¥2.1t | CN¥2.5t | CN¥209.4b | 16.8x |
| Thu, 02 Jul 2020 | CN¥2.1t | CN¥2.5t | CN¥207.1b | 19.3x |
| Sun, 05 Apr 2020 | CN¥1.9t | CN¥2.4t | CN¥210.1b | 16.4x |
| Wed, 08 Jan 2020 | CN¥2.3t | CN¥2.4t | CN¥221.9b | 17.9x |
| Tue, 01 Oct 2019 | CN¥2.0t | CN¥2.3t | CN¥218.1b | 12.4x |
| Fri, 05 Jul 2019 | CN¥2.2t | CN¥2.2t | CN¥216.3b | 12.5x |
Median PE Ratio
14.5x
Current Industry PE
- Investors are relatively neutral on the industry at the moment, indicating that they anticipate long term growth rates to remain steady.
- The industry is trading close to its 3-year average PE ratio of 14.9x.
Past Earnings Growth
- The earnings for companies in the Real Estate industry have declined 41% per year over the last three years.
- Meanwhile revenues for these companies have grown 11% 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 Real Estate industry?
| CN Market | 3.56% | |
| Real Estate | 3.85% | |
| Real Estate | 3.93% | |
| Real Estate Services | 12.40% | |
| Real Estate Operating Companies | 7.66% | |
| Diversified Real Estate | 6.05% | |
| Real Estate Development | 3.11% | |
Industry PE
- Investors are most optimistic about the Real Estate Operating Companies industry even though it's trading below its 3-year average PE ratio of 34.3x.
- Analysts are expecting annual earnings growth of 15%, which is lower than the prior year's growth of 17% per year. So the market might believe that analysts are underestimating future growth.
- Investors are most pessimistic about the Real Estate Services industry, which is trading below its 3-year average of 19.4x.
Forecasted Growth
- Analysts are most optimistic on the Real Estate Services industry, expecting annual earnings growth of 62% over the next 5 years.
- This is better than its past earnings growth rate of 19% per year.
- In contrast, the Real Estate Operating Companies industry is expected to see its earnings grow by 15% 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 | |
|---|---|---|---|---|---|
| 600246 Vantone Neo Development GroupLtd | CN¥9.50 | 17.1% +CN¥2.7b | 23.5% | PB2.7x | |
| 600048 Poly Developments and Holdings Group | CN¥16.59 | 1.2% +CN¥2.4b | 21.7% | PB1x | |
| 838 CASIN Real Estate Development GroupLtd | CN¥8.46 | 33.2% +CN¥2.3b | 197.9% | PB7.6x | |
| 600663 Shanghai Lujiazui Finance & Trade Zone Development | CN¥10.70 | 5.5% +CN¥2.3b | -2.7% | PB1.9x | |
| 926 Hubei Fuxing Science and TechnologyLtd | CN¥6.50 | 60.9% +CN¥2.3b | 43.8% | PB0.5x |