Meituan (HKG:3690) Has A Pretty Healthy Balance Sheet
Sep 14
Hong Kong (HSI) Market Analysis & Valuation
UpdatedSep 21, 2023
DataAggregated Company Financials
Companies2363
- 7D0.4%
- 3M-6.2%
- 1Y-1.5%
- YTD-9.0%
Over the last 7 days, the market has remained flat, although notably the Energy sector gained 5.0% in that time. In line with that, the market has also been flat over the past year. As for the next few years, earnings are expected to grow by 15% per annum.
Market Valuation and Performance
Has the Hong Kong Market valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 21 Sep 2023 | HK$39.9t | HK$45.1t | HK$3.4t | 9.2x | 11.6x | 0.9x |
| Sat, 19 Aug 2023 | HK$39.8t | HK$45.3t | HK$3.6t | 9.5x | 11x | 0.9x |
| Mon, 17 Jul 2023 | HK$42.3t | HK$46.1t | HK$3.7t | 9.5x | 11.5x | 0.9x |
| Wed, 14 Jun 2023 | HK$41.4t | HK$45.5t | HK$3.4t | 9.7x | 12.1x | 0.9x |
| Fri, 12 May 2023 | HK$44.5t | HK$47.4t | HK$3.8t | 9.8x | 11.8x | 0.9x |
| Sun, 09 Apr 2023 | HK$44.1t | HK$47.8t | HK$3.9t | 9.7x | 11.3x | 0.9x |
| Tue, 07 Mar 2023 | HK$44.4t | HK$47.3t | HK$4.2t | 9x | 10.6x | 0.9x |
| Thu, 02 Feb 2023 | HK$45.6t | HK$48.4t | HK$4.3t | 9.1x | 10.6x | 0.9x |
| Sat, 31 Dec 2022 | HK$42.1t | HK$47.2t | HK$4.2t | 8.8x | 10x | 0.9x |
| Mon, 28 Nov 2022 | HK$38.6t | HK$45.7t | HK$4.1t | 8.4x | 9.5x | 0.8x |
| Wed, 26 Oct 2022 | HK$34.7t | HK$45.0t | HK$4.0t | 8x | 8.7x | 0.8x |
| Fri, 23 Sep 2022 | HK$39.1t | HK$45.9t | HK$4.1t | 8.8x | 9.6x | 0.9x |
| Sun, 21 Aug 2022 | HK$41.7t | HK$46.7t | HK$4.3t | 8.8x | 9.8x | 0.9x |
| Tue, 19 Jul 2022 | HK$42.5t | HK$46.8t | HK$4.3t | 9x | 9.8x | 0.9x |
| Thu, 16 Jun 2022 | HK$45.1t | HK$46.9t | HK$4.3t | 9.1x | 10.4x | 1x |
| Sat, 14 May 2022 | HK$42.7t | HK$46.6t | HK$4.3t | 8.8x | 10x | 0.9x |
| Mon, 11 Apr 2022 | HK$46.3t | HK$48.1t | HK$4.5t | 9.2x | 10.4x | 1x |
| Wed, 09 Mar 2022 | HK$46.0t | HK$46.8t | HK$4.5t | 8.2x | 10.2x | 1x |
| Fri, 04 Feb 2022 | HK$48.6t | HK$46.3t | HK$4.4t | 8.8x | 11x | 1x |
| Sun, 02 Jan 2022 | HK$49.2t | HK$46.3t | HK$4.4t | 9.2x | 11.1x | 1.1x |
| Tue, 30 Nov 2021 | HK$49.4t | HK$46.0t | HK$4.4t | 9.3x | 11.2x | 1.1x |
| Thu, 28 Oct 2021 | HK$51.4t | HK$44.9t | HK$4.4t | 9.5x | 11.7x | 1.1x |
| Sat, 25 Sep 2021 | HK$50.5t | HK$44.3t | HK$4.3t | 9.6x | 11.7x | 1.1x |
| Mon, 23 Aug 2021 | HK$50.6t | HK$44.2t | HK$4.3t | 10.3x | 11.7x | 1.1x |
| Sat, 10 Jul 2021 | HK$57.1t | HK$44.2t | HK$4.3t | 10.6x | 13.2x | 1.3x |
| Fri, 02 Apr 2021 | HK$56.0t | HK$41.4t | HK$3.8t | 11x | 14.6x | 1.4x |
| Mon, 04 Jan 2021 | HK$52.1t | HK$39.4t | HK$3.5t | 11.3x | 14.7x | 1.3x |
| Thu, 08 Oct 2020 | HK$44.9t | HK$37.6t | HK$3.2t | 10.9x | 14x | 1.2x |
Price to Earnings Ratio
14x
Current Market PE
- Investors are relatively neutral on the Hong Kong 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 11.9x.
Past Earnings Growth
- The earnings for Hong Kong listed companies have grown 2.4% per year over the last three years.
- Revenues for these companies have grown 6.2% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Sector Trends
Which sectors have driven the changes within the Hong Kong Market?
| HK Market | 0.35% | |
| Energy | 5.04% | |
| Materials | 3.04% | |
| Healthcare | 1.67% | |
| Utilities | 1.27% | |
| Financials | 1.08% | |
| Industrials | -0.17% | |
| Telecom | -0.55% | |
| Consumer Staples | -0.98% | |
| Consumer Discretionary | -1.89% | |
| Tech | -2.57% | |
| Real Estate | -3.38% | |
Sector PE
- Investors favour the Healthcare sector the most for future growth even though it's trading below its 3-year average PE ratio of 2kx.
- The market's confidence is likely because analysts are expecting annual earnings growth of 27.8%, which is higher than its past year's earnings growth of 14.0% per year.
Forecasted Growth
- Analysts are most optimistic on the Materials sector, expecting annual earnings growth of 35% over the next 5 years.
- This is better than its past earnings decline of 23% per year.
- In contrast, the Energy industry is expected to see its earnings growth to stay flat 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 | |
|---|---|---|---|---|---|---|
| 941 China Mobile | HK$68.05 | 3.0% +HK$42.8b | 33.2% | PE10.3x | Telecom | |
| 1288 Agricultural Bank of China | HK$2.85 | 4.0% +HK$38.5b | 16.8% | PB0.4x | Financials | |
| 728 China Telecom | HK$4.03 | 2.5% +HK$9.2b | 42.9% | PE11.7x | Telecom | |
| 1658 Postal Savings Bank of China | HK$3.99 | 2.3% +HK$8.9b | -16.9% | PB0.4x | Financials | |
| 939 China Construction Bank | HK$4.41 | 0.7% +HK$7.5b | -5.2% | PB0.4x | Financials |
Market Insights
The first is one of the oldest technology sectors around, and the second… well it seems to be perpetually on the verge of take-off...
Continue reading
