Chinese (SSE) Utilities Sector Analysis
- 7D3.8%
- 3M4.1%
- 1Y19.4%
- YTD24.7%
Over the last 7 days, the Utilities industry has risen 3.8%, driven by gains in China Three Gorges Renewables (Group)Ltd and China National Nuclear Power of 5.5% and 7.6%, respectively. Meanwhile, State Grid Information & Communication actually underperformed within the industry, shrinking 6.7% in the last week. This takes the industry's 12 month performance to a gain of 19%.
Sector Valuation and Performance
Has the Chinese Utilities Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Sun, 05 Dec 2021 | CN¥2.3t | CN¥1.2t | CN¥95.9b | 25.5x |
| Tue, 02 Nov 2021 | CN¥2.4t | CN¥1.1t | CN¥100.8b | 24x |
| Thu, 30 Sep 2021 | CN¥2.6t | CN¥1.1t | CN¥116.0b | 24.1x |
| Sat, 28 Aug 2021 | CN¥2.1t | CN¥1.1t | CN¥116.1b | 21.6x |
| Sun, 04 Jul 2021 | CN¥2.1t | CN¥1.1t | CN¥115.3b | 19.5x |
| Wed, 07 Apr 2021 | CN¥2.0t | CN¥1.1t | CN¥111.5b | 20.7x |
| Sat, 09 Jan 2021 | CN¥1.7t | CN¥999.0b | CN¥102.9b | 20.1x |
| Fri, 02 Oct 2020 | CN¥1.6t | CN¥988.6b | CN¥99.9b | 19.1x |
| Mon, 06 Jul 2020 | CN¥1.5t | CN¥978.6b | CN¥89.2b | 18.5x |
| Thu, 09 Apr 2020 | CN¥1.5t | CN¥987.3b | CN¥81.9b | 17.9x |
| Wed, 01 Jan 2020 | CN¥1.6t | CN¥997.6b | CN¥89.0b | 19.5x |
| Sat, 05 Oct 2019 | CN¥1.5t | CN¥957.1b | CN¥95.4b | 17.8x |
| Tue, 09 Jul 2019 | CN¥1.6t | CN¥915.6b | CN¥92.2b | 18.7x |
| Mon, 01 Apr 2019 | CN¥1.6t | CN¥849.5b | CN¥88.2b | 23.7x |
| Thu, 03 Jan 2019 | CN¥1.4t | CN¥814.3b | CN¥84.5b | 19.8x |
19.8x
Current Industry PE: Investors are more optimistic on the industry, considering it's trading at a PE ratio of 27.6x which is higher than its 3-year average PE of 20.0x. It appears they are confident that earnings will grow faster in the future than they have historically.
Past Earnings Growth: The earnings for companies in the Utilities industry have grown 4.3% per year over the last three years, and revenues for these companies have grown 12% 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 Utilities sector?
| Renewable Energy | 4.76% | |
| Other Utilities | 2.39% | |
| Electric Utilities | 1.23% | |
| Water Utilities | 1.14% | |
| Gas Utilities | -0.17% | |
Industry PE: Investors are most optimistic about the Electric Utilities industry which is trading above its 3-year average PE ratio of 30.3x. This is likely because analysts are expecting annual earnings growth of 10%, which is higher than its past year's earnings growth of 0.6% per year. Meanwhile, investors are most pessimistic about the Gas Utilities industry, which is trading below its 3-year average of 23.2x.
Forecasted Growth: Analysts are most optimistic on the Renewable Energy industry, expecting annual earnings growth of 22% over the next 5 years. This is better than it's past earnings growth rate of 6.4% per year. Meanwhile, the Water Utilities industry is expected to see its earnings grow by 9.0% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | 7D | 1Y | Valuation | |
|---|---|---|---|---|
| 600905 China Three Gorges Renewables (Group)Ltd | 5.5%+CN¥10.3b | n/a | PE40.9x | |
| 601985 China National Nuclear Power | 7.6%+CN¥8.9b | 49.1% | PE16.8x | |
| 600021 Shanghai Electric PowerLtd | 28.5%+CN¥6.9b | 59.4% | PS1.1x | |
| 600025 Huaneng Lancang River Hydropower | 5.0%+CN¥5.4b | 38.5% | PE21.2x | |
| 591 CECEP Solar EnergyLtd | 17.7%+CN¥5.2b | 139.6% | PE28.1x |