Ping An Insurance (Group) Company of China, Ltd. (SHSE:601318) Soars 30% But It's A Story Of Risk Vs Reward
Oct 01
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Chinese (SSE) Market Analysis & Valuation
UpdatedOct 06, 2024
DataAggregated Company Financials
Companies4980
- 7D9.9%
- 3M18.8%
- 1Y1.2%
- YTD6.0%
The market is up 9.9% in the last 7 days, led by the Information Technology and all sectors gaining ground. The market has been flat overall in the last year. Looking forward, earnings are forecast to grow by 23% annually.
Market Valuation and Performance
Has the Chinese Market valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 06 Oct 2024 | CN¥70.4t | CN¥50.3t | CN¥2.8t | 33.5x | 25.4x | 1.4x |
| Tue, 03 Sep 2024 | CN¥56.1t | CN¥50.4t | CN¥2.8t | 26.8x | 20.2x | 1.1x |
| Thu, 01 Aug 2024 | CN¥59.7t | CN¥50.7t | CN¥2.8t | 28.5x | 21.2x | 1.2x |
| Sat, 29 Jun 2024 | CN¥60.1t | CN¥50.8t | CN¥2.8t | 28.9x | 21.4x | 1.2x |
| Mon, 27 May 2024 | CN¥64.3t | CN¥50.7t | CN¥2.8t | 31.1x | 23.1x | 1.3x |
| Wed, 24 Apr 2024 | CN¥62.2t | CN¥51.0t | CN¥2.9t | 29.3x | 21.6x | 1.2x |
| Fri, 22 Mar 2024 | CN¥65.9t | CN¥51.7t | CN¥2.9t | 32x | 22.9x | 1.3x |
| Sun, 18 Feb 2024 | CN¥59.2t | CN¥51.9t | CN¥3.1t | 26.5x | 19.2x | 1.1x |
| Tue, 16 Jan 2024 | CN¥62.5t | CN¥49.9t | CN¥2.7t | 33.7x | 23x | 1.3x |
| Thu, 14 Dec 2023 | CN¥65.5t | CN¥49.8t | CN¥2.7t | 35.2x | 24.1x | 1.3x |
| Sat, 11 Nov 2023 | CN¥67.1t | CN¥49.8t | CN¥2.7t | 35.1x | 24.7x | 1.3x |
| Mon, 09 Oct 2023 | CN¥67.6t | CN¥49.6t | CN¥2.7t | 35.2x | 24.7x | 1.4x |
| Wed, 06 Sep 2023 | CN¥69.2t | CN¥49.6t | CN¥2.8t | 35.2x | 25.1x | 1.4x |
| Fri, 04 Aug 2023 | CN¥72.0t | CN¥49.2t | CN¥2.8t | 36x | 25.4x | 1.5x |
| Sun, 02 Jul 2023 | CN¥70.8t | CN¥49.1t | CN¥2.8t | 36.7x | 25.1x | 1.4x |
| Tue, 30 May 2023 | CN¥70.1t | CN¥49.0t | CN¥2.8t | 35.9x | 24.9x | 1.4x |
| Thu, 27 Apr 2023 | CN¥70.7t | CN¥48.2t | CN¥2.8t | 34.7x | 25x | 1.5x |
| Sat, 25 Mar 2023 | CN¥72.5t | CN¥48.2t | CN¥2.9t | 35.9x | 25x | 1.5x |
| Mon, 20 Feb 2023 | CN¥72.4t | CN¥47.5t | CN¥2.9t | 36x | 25.3x | 1.5x |
| Wed, 18 Jan 2023 | CN¥71.7t | CN¥47.4t | CN¥2.8t | 34x | 25.2x | 1.5x |
| Fri, 16 Dec 2022 | CN¥69.9t | CN¥47.5t | CN¥2.8t | 34.4x | 24.7x | 1.5x |
| Sun, 13 Nov 2022 | CN¥68.2t | CN¥47.5t | CN¥2.8t | 34.1x | 24.2x | 1.4x |
| Tue, 11 Oct 2022 | CN¥63.8t | CN¥46.6t | CN¥2.9t | 29.5x | 22.4x | 1.4x |
| Thu, 08 Sep 2022 | CN¥70.8t | CN¥46.4t | CN¥2.9t | 34.3x | 24.8x | 1.5x |
| Sat, 06 Aug 2022 | CN¥71.4t | CN¥46.1t | CN¥2.8t | 34.3x | 25.1x | 1.5x |
| Mon, 04 Jul 2022 | CN¥73.1t | CN¥46.0t | CN¥2.8t | 34.2x | 26x | 1.6x |
| Wed, 01 Jun 2022 | CN¥66.8t | CN¥46.1t | CN¥2.8t | 31.5x | 23.6x | 1.4x |
| Fri, 29 Apr 2022 | CN¥60.8t | CN¥46.2t | CN¥3.0t | 26.8x | 20.5x | 1.3x |
| Sun, 27 Mar 2022 | CN¥68.9t | CN¥45.0t | CN¥3.0t | 32.4x | 23x | 1.5x |
| Tue, 22 Feb 2022 | CN¥75.1t | CN¥44.1t | CN¥3.0t | 35.5x | 25.3x | 1.7x |
| Thu, 20 Jan 2022 | CN¥77.8t | CN¥43.8t | CN¥2.9t | 37.7x | 26.5x | 1.8x |
| Sat, 18 Dec 2021 | CN¥79.7t | CN¥43.7t | CN¥2.9t | 37.7x | 27.2x | 1.8x |
| Mon, 15 Nov 2021 | CN¥77.2t | CN¥43.7t | CN¥2.9t | 35.6x | 26.4x | 1.8x |
| Wed, 13 Oct 2021 | CN¥73.5t | CN¥42.4t | CN¥2.9t | 33.1x | 25x | 1.7x |
Price to Earnings Ratio
25x
Current Market PE
- Investors are relatively neutral on the Chinese market at the moment, indicating that they expect earnings will grow in line with historical growth rates.
- The market is trading close to its 3-year average PE ratio of 23.9x.
Past Earnings Growth
- The earnings for Chinese listed companies have remained mostly flat over the last three years.
- Meanwhile revenues have grown 5.8% 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 | 9.95% | |
| Telecom | 13.34% | |
| Tech | 13.14% | |
| Healthcare | 11.37% | |
| Industrials | 9.78% | |
| Materials | 9.36% | |
| Real Estate | 9.03% | |
| Consumer Staples | 8.84% | |
| Consumer Discretionary | 8.71% | |
| Financials | 8.22% | |
| Energy | 6.58% | |
| Utilities | 6.29% | |
| Information Technology | 0% | |
| Financials | 0% | |
| Health Care | 0% | |
| Industrials | 0% | |
Sector PE
- Investors favour the Tech sector the most for future growth, which is trading above its 3-year average PE ratio of 47.9x.
- The market's confidence is likely because analysts are expecting annual earnings growth of 36.4% which is higher than its past year's earnings decline of 4.0% per year.
Forecasted Growth
- Analysts are most optimistic on the Real Estate sector, expecting annual earnings growth of 38% over the next 5 years.
- This is better than its past earnings decline of 32% per year.
- In contrast, the Utilities sector is expected to see its earnings grow by 11% 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 | |
|---|---|---|---|---|---|---|
| 600519 Kweichow Moutai | CN¥1.75k | 7.3% +CN¥149.2b | -2.8% | PE27.3x | Consumer Staples | |
| 300750 Contemporary Amperex Technology | CN¥251.89 | 11.1% +CN¥110.0b | 24.1% | PE23.9x | Industrials | |
| 601318 Ping An Insurance (Group) Company of China | CN¥57.09 | 10.0% +CN¥94.0b | 18.2% | PE11.4x | Financials | |
| 000858 Wuliangye YibinLtd | CN¥162.51 | 10.0% +CN¥57.3b | 4.1% | PE19.6x | Consumer Staples | |
| 300059 East Money InformationLtd | CN¥20.30 | 20.0% +CN¥53.4b | 33.6% | PE39.9x | Financials |