China East Education Holdings' (HKG:667) Returns On Capital Not Reflecting Well On The Business
Dec 19
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Hong Kong (HSI) Consumer Services Industry Analysis
UpdatedDec 20, 2024
DataAggregated Company Financials
Companies62
- 7D-3.1%
- 3M0.7%
- 1Y-19.2%
- YTD-20.5%
Over the last 7 days, the Consumer Services industry has dropped 2.8%, driven by China Education Group Holdings declining 7.7%. On the other hand China New Higher Education Group is actually up 19%. Overall the industry is down 19% in 12 months. Looking forward, earnings are forecast to grow by 23% annually.
Industry Valuation and Performance
Has the Hong Kong Consumer Services Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 20 Dec 2024 | HK$95.9b | HK$70.0b | HK$10.2b | 8.5x | 9.4x | 1.4x |
| Sun, 17 Nov 2024 | HK$106.7b | HK$69.2b | HK$10.6b | 6.1x | 10.1x | 1.5x |
| Tue, 15 Oct 2024 | HK$111.0b | HK$70.0b | HK$10.7b | 6.7x | 10.4x | 1.6x |
| Thu, 12 Sep 2024 | HK$92.9b | HK$69.8b | HK$10.7b | 6.4x | 8.7x | 1.3x |
| Sat, 10 Aug 2024 | HK$100.5b | HK$69.1b | HK$12.1b | 6.1x | 8.3x | 1.5x |
| Mon, 08 Jul 2024 | HK$104.9b | HK$68.3b | HK$12.0b | 6.4x | 8.8x | 1.5x |
| Wed, 05 Jun 2024 | HK$108.2b | HK$67.9b | HK$12.0b | 6.2x | 9x | 1.6x |
| Fri, 03 May 2024 | HK$109.4b | HK$67.1b | HK$11.9b | 6x | 9.2x | 1.6x |
| Sun, 31 Mar 2024 | HK$124.1b | HK$71.2b | HK$13.1b | 7.8x | 9.5x | 1.7x |
| Tue, 27 Feb 2024 | HK$133.2b | HK$67.4b | HK$10.3b | 8.3x | 13x | 2x |
| Thu, 25 Jan 2024 | HK$127.8b | HK$68.0b | HK$10.8b | 8.6x | 11.8x | 1.9x |
| Sat, 23 Dec 2023 | HK$141.8b | HK$67.6b | HK$10.8b | 8.8x | 13.2x | 2.1x |
| Mon, 20 Nov 2023 | HK$152.9b | HK$64.2b | HK$11.1b | 7.6x | 13.8x | 2.4x |
| Wed, 18 Oct 2023 | HK$151.7b | HK$63.6b | HK$10.0b | 8.3x | 15.1x | 2.4x |
| Fri, 15 Sep 2023 | HK$158.4b | HK$63.8b | HK$10.1b | 7.8x | 15.7x | 2.5x |
| Sun, 13 Aug 2023 | HK$143.1b | HK$56.3b | HK$10.8b | 9.2x | 13.2x | 2.5x |
| Tue, 11 Jul 2023 | HK$131.5b | HK$56.4b | HK$10.8b | 9.2x | 12.2x | 2.3x |
| Thu, 08 Jun 2023 | HK$140.5b | HK$56.2b | HK$10.8b | 9.5x | 13x | 2.5x |
| Sat, 06 May 2023 | HK$148.3b | HK$57.5b | HK$11.1b | 10.2x | 13.3x | 2.6x |
| Mon, 03 Apr 2023 | HK$166.3b | HK$57.1b | HK$11.1b | 9.5x | 15x | 2.9x |
| Wed, 01 Mar 2023 | HK$181.1b | HK$56.0b | HK$10.2b | 9.8x | 17.7x | 3.2x |
| Fri, 27 Jan 2023 | HK$234.1b | HK$57.0b | HK$10.9b | 10.9x | 21.5x | 4.1x |
| Sun, 25 Dec 2022 | HK$193.0b | HK$51.6b | HK$9.6b | 9.1x | 20.1x | 3.7x |
| Tue, 22 Nov 2022 | HK$151.3b | HK$49.0b | HK$4.5b | 8.3x | 33.9x | 3.1x |
| Thu, 20 Oct 2022 | HK$123.8b | HK$48.5b | HK$4.4b | 7.2x | 27.9x | 2.6x |
| Sat, 17 Sep 2022 | HK$125.8b | HK$49.7b | HK$4.6b | 7.3x | 27.3x | 2.5x |
| Mon, 15 Aug 2022 | HK$124.7b | HK$53.7b | HK$3.3b | 8x | 37.8x | 2.3x |
| Wed, 13 Jul 2022 | HK$128.5b | HK$54.1b | HK$3.3b | 8.1x | 38.4x | 2.4x |
| Fri, 10 Jun 2022 | HK$118.3b | HK$54.2b | HK$3.6b | 8.4x | 32.5x | 2.2x |
| Sun, 08 May 2022 | HK$109.2b | HK$53.7b | HK$3.8b | 8.6x | 28.8x | 2x |
| Tue, 05 Apr 2022 | HK$123.8b | HK$54.9b | HK$3.9b | 8.6x | 31.7x | 2.3x |
| Thu, 03 Mar 2022 | HK$132.0b | HK$57.6b | HK$7.6b | 9.3x | 17.4x | 2.3x |
| Sat, 29 Jan 2022 | HK$135.7b | HK$57.1b | HK$7.6b | 10.3x | 17.9x | 2.4x |
| Mon, 27 Dec 2021 | HK$182.2b | HK$61.6b | HK$8.0b | 13.5x | 22.9x | 3x |
Price to Earnings Ratio
22.9x
Current Industry PE
- Investors are pessimistic on the Hong Kong Consumer Services 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 9.4x which is lower than its 3-year average PE of 17.8x.
- The 3-year average PS ratio of 2.3x is higher than the industry's current PS ratio of 1.4x.
Past Earnings Growth
- The earnings for companies in the Consumer Services industry have grown 8.7% per year over the last three years.
- Revenues for these companies have grown 4.4% 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 | -2.23% | |
| Consumer Discretionary | -3.61% | |
| Consumer Services | -3.14% | |
| Education Services | -2.77% | |
| Specialized Consumer Services | -3.99% | |
Industry PE
- Investors are most optimistic about the Specialized Consumer Services industry which is trading above its 3-year average PE ratio of 26.9x.
- Analysts are expecting annual earnings growth of 32.0%, which is higher than its past year's earnings decline of 19.9% per year.
- Investors are most pessimistic about the Education Services industry, which is trading below its 3-year average of 18.3x.
Forecasted Growth
- Analysts are most optimistic on the Specialized Consumer Services industry, expecting annual earnings growth of 32% over the next 5 years.
- This is better than its past earnings decline of 20% per year.
- In contrast, the Education Services industry is expected to see its earnings grow by 19% 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 | |
|---|---|---|---|---|---|
| 2001 China New Higher Education Group | HK$1.26 | 18.9% +HK$308.5m | -38.8% | PE2.4x | |
| 1890 China Kepei Education Group | HK$1.39 | 3.7% +HK$100.7m | 7.8% | PE3.2x | |
| 1756 China Vocational Education Holdings | HK$0.65 | 10.2% +HK$72.0m | 3.2% | PE1.6x | |
| 1851 China Gingko Education Group | HK$0.79 | 21.5% +HK$70.0m | -20.2% | PE2.2x | |
| 2779 China Xinhua Education Group | HK$0.69 | 4.5% +HK$48.3m | 32.7% | PE3.1x |
