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Hong Kong (HSI) Consumer Discretionary Sector Analysis
UpdatedDec 02, 2021
DataAggregated Company Financials
Companies478
- 7D-4.0%
- 3M-6.1%
- 1Y3.2%
- YTD-10.3%
Over the last 7 days, the Consumer Discretionary industry has dropped 4.0%, driven by a pullback from Meituan of 8.5%. This takes the industry's 12 month performance to a gain of 3.2%.
Sector Valuation and Performance
Has the Hong Kong Consumer Discretionary Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Sat, 04 Dec 2021 | HK$7.0t | HK$3.4t | HK$54.0b | 12.6x |
| Mon, 01 Nov 2021 | HK$7.1t | HK$3.4t | HK$68.6b | 12.8x |
| Wed, 29 Sep 2021 | HK$6.9t | HK$3.4t | HK$70.3b | 12.9x |
| Fri, 27 Aug 2021 | HK$7.3t | HK$3.3t | HK$83.2b | 12.7x |
| Sat, 03 Jul 2021 | HK$8.3t | HK$3.3t | HK$82.2b | 14.4x |
| Tue, 06 Apr 2021 | HK$7.3t | HK$3.1t | HK$58.8b | 13.7x |
| Fri, 08 Jan 2021 | HK$7.4t | HK$2.8t | HK$9.3b | 15.5x |
| Thu, 01 Oct 2020 | HK$5.3t | HK$2.7t | HK$38.8b | 15.2x |
| Sun, 05 Jul 2020 | HK$4.2t | HK$2.7t | HK$37.0b | 14.1x |
| Wed, 08 Apr 2020 | HK$3.3t | HK$2.8t | HK$84.4b | 12.4x |
| Tue, 31 Dec 2019 | HK$4.1t | HK$3.0t | HK$159.7b | 14x |
| Fri, 04 Oct 2019 | HK$3.6t | HK$2.9t | HK$159.4b | 13.2x |
| Mon, 08 Jul 2019 | HK$3.6t | HK$2.9t | HK$69.6b | 13.2x |
| Sun, 31 Mar 2019 | HK$3.6t | HK$3.0t | HK$60.3b | 13.6x |
| Wed, 02 Jan 2019 | HK$3.2t | HK$2.9t | HK$35.7b | 12.2x |
PE Ratio
12.2x
Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 13.7x. It appears they believe that earnings will grow in-line with historical growth rates.
Past Earnings Growth: The earnings for companies in the Consumer Discretionary industry have remained mostly flat over the last three years, while revenues for these companies have grown 6.8% 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.
Industry Trends
Which industries have driven the changes within the Hong Kong Consumer Discretionary sector?
| Luxury | -0.038% | |
| Retail Distributors | -0.80% | |
| Specialty Stores | -1.25% | |
| Leisure | -1.86% | |
| Auto | -2.12% | |
| Auto Components | -2.18% | |
| General Merchanise and Department Stores | -2.88% | |
| Consumer Durables | -6.13% | |
| Online Retail and Ecommerce | -6.39% | |
| Consumer Services | -8.74% | |
| Hospitality | -9.50% | |
Industry PE: Investors are most optimistic about the Retail Distributors industry which is trading above its 3-year average PE ratio of 26.4x. However analysts are expecting annual earnings growth of 41%, which is lower than the prior year's growth of 84% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Consumer Durables industry, which is trading below its 3-year average of 11.4x.
Forecasted Growth: Analysts are most optimistic on the Hospitality industry, expecting annual earnings growth of 70% over the next 5 years. This is better than it's past earnings growth rate of 6.9% per year. Meanwhile, the General Merchanise and Department Stores industry is expected to see its earnings decline by 4.7% 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 | |
|---|---|---|---|---|
| 1913 Prada | 4.3%+HK$5.5b | 30.7% | PE68.1x | |
| 881 Zhongsheng Group Holdings | 1.9%+HK$3.0b | 18.0% | PE18.9x | |
| 2331 Li Ning | 1.3%+HK$3.0b | 102.0% | PE62.8x | |
| 2020 ANTA Sports Products | 0.9%+HK$3.0b | 15.0% | PE38.3x | |
| 1585 Yadea Group Holdings | 6.5%+HK$2.5b | -2.5% | PE28.6x |
