Is Ev Dynamics (Holdings) (HKG:476) A Risky Investment?
Dec 01
Hong Kong (HSI) Auto Industry Analysis
UpdatedDec 01, 2023
DataAggregated Company Financials
Companies13
- 7D-9.1%
- 3M-6.4%
- 1Y-1.1%
- YTD-2.1%
Over the last 7 days, the Auto industry has dropped 9.1%, driven by a pullback from BYD of 9.8%. Meanwhile, Dongfeng Motor Group actually outperformed within the industry, gaining 7.6% in the last week. As for the longer term, the industry's performance has been flat for the past year. Looking forward, earnings are forecast to grow by 20% annually.
Industry Valuation and Performance
Has the Hong Kong Auto Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 01 Dec 2023 | HK$1.2t | HK$1.5t | HK$65.3b | 15.8x | 18.1x | 0.8x |
| Sun, 29 Oct 2023 | HK$1.3t | HK$1.4t | HK$58.5b | 16.3x | 22x | 0.9x |
| Tue, 26 Sep 2023 | HK$1.3t | HK$1.4t | HK$58.2b | 16.5x | 22x | 0.9x |
| Thu, 24 Aug 2023 | HK$1.2t | HK$1.3t | HK$61.8b | 10.4x | 19.3x | 0.9x |
| Sat, 22 Jul 2023 | HK$1.4t | HK$1.3t | HK$62.0b | 10.9x | 22.1x | 1x |
| Mon, 19 Jun 2023 | HK$1.4t | HK$1.3t | HK$62.2b | 10.4x | 22.4x | 1.1x |
| Wed, 17 May 2023 | HK$1.4t | HK$1.4t | HK$63.8b | 10.8x | 21.7x | 1x |
| Fri, 14 Apr 2023 | HK$1.3t | HK$1.3t | HK$64.3b | 6.8x | 20.5x | 1x |
| Sun, 12 Mar 2023 | HK$1.3t | HK$1.2t | HK$53.1b | 8.2x | 24.6x | 1.1x |
| Tue, 07 Feb 2023 | HK$1.5t | HK$2.6t | HK$140.2b | 5x | 11x | 0.6x |
| Thu, 05 Jan 2023 | HK$1.4t | HK$1.2t | HK$55.0b | 7.8x | 24.8x | 1.2x |
| Sat, 03 Dec 2022 | HK$1.4t | HK$1.1t | HK$53.4b | 8.8x | 25.4x | 1.2x |
| Mon, 31 Oct 2022 | HK$1.2t | HK$1.1t | HK$53.0b | 7x | 22.3x | 1.1x |
| Wed, 28 Sep 2022 | HK$1.4t | HK$993.0b | HK$43.9b | 10.7x | 30.8x | 1.4x |
| Fri, 26 Aug 2022 | HK$1.6t | HK$1.0t | HK$44.1b | 11.2x | 36.8x | 1.6x |
| Sun, 24 Jul 2022 | HK$1.7t | HK$1.0t | HK$45.8b | 12.1x | 38x | 1.7x |
| Tue, 21 Jun 2022 | HK$1.8t | HK$1.0t | HK$45.7b | 13.7x | 40x | 1.8x |
| Thu, 19 May 2022 | HK$1.5t | HK$1.0t | HK$45.5b | 12.1x | 34x | 1.5x |
| Sat, 16 Apr 2022 | HK$1.4t | HK$1.0t | HK$46.8b | 10.9x | 29.7x | 1.3x |
| Mon, 14 Mar 2022 | HK$1.3t | HK$1.0t | HK$52.0b | 10.6x | 25.7x | 1.3x |
| Wed, 09 Feb 2022 | HK$1.6t | HK$1.0t | HK$51.6b | 15.3x | 30.8x | 1.6x |
| Fri, 07 Jan 2022 | HK$1.7t | HK$1.0t | HK$51.6b | n/a | 33.8x | 1.7x |
| Sun, 05 Dec 2021 | HK$2.1t | HK$1.0t | HK$51.5b | 19.7x | 40.1x | 2x |
| Tue, 02 Nov 2021 | HK$1.9t | HK$1.0t | HK$51.1b | 18.4x | 37x | 1.9x |
| Thu, 30 Sep 2021 | HK$1.7t | HK$1.0t | HK$54.5b | 17.6x | 31.8x | 1.7x |
| Sat, 28 Aug 2021 | HK$2.1t | HK$1.0t | HK$62.6b | 18.4x | 33.2x | 2.1x |
| Sun, 04 Jul 2021 | HK$1.7t | HK$1.0t | HK$62.6b | 14x | 27.7x | 1.7x |
| Wed, 07 Apr 2021 | HK$1.3t | HK$957.1b | HK$59.6b | 11.1x | 21.6x | 1.3x |
| Sat, 09 Jan 2021 | HK$1.5t | HK$864.9b | HK$49.2b | 19.9x | 31.5x | 1.8x |
Price to Earnings Ratio
29.1x
Current Industry PE
- Investors are pessimistic on the Hong Kong Auto industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 18.1x which is lower than its 3-year average PE of 28.5x.
- The 3-year average PS ratio of 1.4x is higher than the industry's current PS ratio of 0.78x.
Past Earnings Growth
- The earnings for companies in the Auto industry have grown 13% per year over the last three years.
- Revenues for these companies have grown 24% 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 Hong Kong Consumer Discretionary industry?
| HK Market | -3.36% | |
| Consumer Discretionary | -8.30% | |
| Auto | -9.12% | |
| Motorcycle Manufacturers | -4.22% | |
| Automobile Manufacturers | -9.32% | |
Industry PE
- Investors are most optimistic about the Automobile Manufacturers industry even though it's trading below its 3-year average PE ratio of 28.5x.
- Analysts are expecting annual earnings growth of 20.3%, which is higher than its past year's earnings growth of 2.3% per year.
- Investors are most pessimistic about the Motorcycle Manufacturers industry, which is trading below its 3-year average of 27.8x.
Forecasted Growth
- Analysts are most optimistic on the Motorcycle Manufacturers industry, expecting annual earnings growth of 21% over the next 5 years.
- However this is lower than its past earnings growth rate of 73% per year.
- In contrast, the Automobile Manufacturers industry is expected to see its earnings grow by 20% 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 | |
|---|---|---|---|---|---|
| 489 Dongfeng Motor Group | HK$3.96 | 7.6% +HK$2.3b | -12.0% | PE5x | |
| 9863 Zhejiang Leapmotor Technology | HK$40.20 | 2.9% +HK$1.5b | 69.3% | PS3.7x | |
| 2451 Luyuan Group Holding (Cayman) | HK$7.32 | 2.7% +HK$81.1m | n/a | PE24.2x | |
| 1114 Brilliance China Automotive Holdings | HK$4.30 | 0.2% +HK$50.5m | -12.2% | PE2.6x |
