China Three Gorges Renewables (Group) Co.,Ltd.'s (SHSE:600905) Low P/E No Reason For Excitement
Jul 26
Chinese (SSE) Market Analysis & Valuation
UpdatedJul 27, 2024
DataAggregated Company Financials
Companies4986
- 7D-2.8%
- 3M-9.2%
- 1Y-21.0%
- YTD-11.8%
Over the last 7 days, the market has dropped 2.8%, driven by declines in every sector, especially the Information Technology sector. In the last 12 months the market is down 21%. As for the next few years, earnings are expected to grow by 22% per annum.
Market Valuation and Performance
Has the Chinese Market valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sat, 27 Jul 2024 | CN¥58.3t | CN¥50.7t | CN¥2.8t | 27.5x | 20.7x | 1.1x |
| Mon, 24 Jun 2024 | CN¥61.4t | CN¥50.8t | CN¥2.8t | 29.5x | 21.9x | 1.2x |
| Wed, 22 May 2024 | CN¥66.0t | CN¥50.8t | CN¥2.8t | 32.1x | 23.7x | 1.3x |
| Fri, 19 Apr 2024 | CN¥63.2t | CN¥50.9t | CN¥2.9t | 29.3x | 22x | 1.2x |
| Sun, 17 Mar 2024 | CN¥65.1t | CN¥51.5t | CN¥2.9t | 31.2x | 22.7x | 1.3x |
| Tue, 13 Feb 2024 | CN¥59.2t | CN¥51.9t | CN¥3.1t | 26.5x | 19.1x | 1.1x |
| Thu, 11 Jan 2024 | CN¥62.2t | CN¥49.9t | CN¥2.7t | 33.4x | 22.9x | 1.2x |
| Sat, 09 Dec 2023 | CN¥65.4t | CN¥49.8t | CN¥2.7t | 34.7x | 24.1x | 1.3x |
| Mon, 06 Nov 2023 | CN¥66.3t | CN¥51.9t | CN¥2.6t | 34.6x | 25.5x | 1.3x |
| Wed, 04 Oct 2023 | CN¥67.6t | CN¥49.6t | CN¥2.7t | 35.2x | 24.8x | 1.4x |
| Fri, 01 Sep 2023 | CN¥68.5t | CN¥49.6t | CN¥2.8t | 35.1x | 24.7x | 1.4x |
| Sun, 30 Jul 2023 | CN¥71.6t | CN¥49.2t | CN¥2.8t | 36.1x | 25.3x | 1.5x |
| Tue, 27 Jun 2023 | CN¥69.3t | CN¥49.0t | CN¥2.8t | 35.6x | 24.6x | 1.4x |
| Thu, 25 May 2023 | CN¥70.1t | CN¥49.0t | CN¥2.8t | 35.8x | 24.9x | 1.4x |
| Sat, 22 Apr 2023 | CN¥72.1t | CN¥48.4t | CN¥2.8t | 34.9x | 25.3x | 1.5x |
| Mon, 20 Mar 2023 | CN¥70.9t | CN¥47.8t | CN¥2.9t | 35.3x | 24.5x | 1.5x |
| Wed, 15 Feb 2023 | CN¥74.5t | CN¥47.5t | CN¥2.9t | 37x | 26x | 1.6x |
| Fri, 13 Jan 2023 | CN¥69.9t | CN¥47.5t | CN¥2.8t | 33.3x | 24.8x | 1.5x |
| Sun, 11 Dec 2022 | CN¥70.6t | CN¥47.5t | CN¥2.8t | 34.5x | 25x | 1.5x |
| Tue, 08 Nov 2022 | CN¥68.4t | CN¥47.4t | CN¥2.8t | 34.4x | 24.2x | 1.4x |
| Thu, 06 Oct 2022 | CN¥65.3t | CN¥46.6t | CN¥2.9t | 30x | 22.9x | 1.4x |
| Sat, 03 Sep 2022 | CN¥70.0t | CN¥46.0t | CN¥2.8t | 33.8x | 24.6x | 1.5x |
| Mon, 01 Aug 2022 | CN¥71.7t | CN¥46.1t | CN¥2.8t | 34.7x | 25.3x | 1.6x |
| Wed, 29 Jun 2022 | CN¥73.7t | CN¥46.2t | CN¥2.8t | 34.6x | 26x | 1.6x |
| Fri, 27 May 2022 | CN¥64.8t | CN¥46.1t | CN¥2.8t | 30.4x | 22.9x | 1.4x |
| Sun, 24 Apr 2022 | CN¥63.9t | CN¥45.6t | CN¥3.0t | 29x | 21.4x | 1.4x |
| Tue, 22 Mar 2022 | CN¥70.3t | CN¥44.9t | CN¥3.0t | 33x | 23.5x | 1.6x |
| Thu, 17 Feb 2022 | CN¥74.3t | CN¥44.1t | CN¥3.0t | 35x | 25.1x | 1.7x |
| Sat, 15 Jan 2022 | CN¥77.3t | CN¥43.8t | CN¥2.9t | 37.6x | 26.4x | 1.8x |
| Mon, 13 Dec 2021 | CN¥80.3t | CN¥43.7t | CN¥2.9t | 37x | 27.5x | 1.8x |
| Wed, 10 Nov 2021 | CN¥75.6t | CN¥43.6t | CN¥2.9t | 34.4x | 25.9x | 1.7x |
| Fri, 08 Oct 2021 | CN¥75.3t | CN¥42.4t | CN¥2.9t | 33.1x | 25.7x | 1.8x |
| Sun, 05 Sep 2021 | CN¥75.7t | CN¥42.4t | CN¥2.9t | 34.8x | 25.9x | 1.8x |
| Tue, 03 Aug 2021 | CN¥74.1t | CN¥42.3t | CN¥2.9t | 34.1x | 25.5x | 1.8x |
Price to Earnings Ratio
25.5x
Current Market PE
- Investors are pessimistic on the Chinese market, indicating that they anticipate earnings will not grow as fast as they have historically.
- The market is trading at a PE ratio of 20.7x which is lower than its 3-year average PE of 24.3x.
Past Earnings Growth
- The earnings for Chinese listed companies have remained mostly flat over the last three years.
- Meanwhile revenues have grown 6.2% 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 and as a result, profits have held steady.
Sector Trends
Which sectors have driven the changes within the Chinese Market?
| CN Market | -2.85% | |
| Industrials | -0.34% | |
| Utilities | -0.73% | |
| Telecom | -1.72% | |
| Consumer Discretionary | -1.72% | |
| Real Estate | -2.50% | |
| Financials | -2.79% | |
| Energy | -3.54% | |
| Tech | -3.86% | |
| Materials | -3.87% | |
| Healthcare | -4.05% | |
| Consumer Staples | -5.94% | |
Sector PE
- Investors favour the Tech sector the most for future growth, which is trading close to its 3-year average PE ratio of 48.7x.
- The market's confidence is likely because analysts are expecting annual earnings growth of 33.5% which is higher than its past year's earnings decline of 5.1% per year.
Forecasted Growth
- Analysts are most optimistic on the Tech sector, expecting annual earnings growth of 34% over the next 5 years.
- This is better than its past earnings decline of 5.1% per year.
- In contrast, the Financials sector is expected to see its earnings grow by 12% 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 | Sector | |
|---|---|---|---|---|---|---|
| 600611 Dazhong Transportation (Group) | CN¥8.43 | 51.1% +CN¥6.7b | 160.2% | PE81.9x | Industrials | |
| 600905 China Three Gorges Renewables (Group)Ltd | CN¥4.89 | 4.5% +CN¥6.0b | -8.8% | PE19.5x | Utilities | |
| 601816 Beijing-Shanghai High-Speed Railway | CN¥5.84 | 2.1% +CN¥5.9b | 3.9% | PE23.3x | Industrials | |
| 601985 China National Nuclear Power | CN¥12.01 | 2.6% +CN¥5.9b | 65.0% | PE21.3x | Utilities | |
| 002202 Goldwind Science And Technology | CN¥8.24 | 18.2% +CN¥5.4b | -25.6% | PE110.7x | Industrials |
