The Returns On Capital At New World Department Store China (HKG:825) Don't Inspire Confidence
Dec 07
Hong Kong (HSI) General Merchanise and Department Stores Industry Analysis
UpdatedDec 07, 2022
DataAggregated Company Financials
Companies11
- 7D6.9%
- 3M-4.5%
- 1Y-23.4%
- YTD-21.7%
Over the last 7 days, the General Merchanise and Department Stores industry has risen 6.9%, driven by gains from Golden Eagle Retail Group of 6.4%. During this same period, the Sincere Company underperformed, falling 7.4%. In the past year, the industry is down 23%. Looking forward, earnings are forecast to grow by 8.6% annually.
Industry Valuation and Performance
Has the Hong Kong General Merchanise and Department Stores Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 08 Dec 2022 | HK$19.2b | HK$35.2b | -HK$746,957,057.00 | 28.9x | -25.8x | 0.5x |
| Sat, 05 Nov 2022 | HK$16.9b | HK$34.6b | -HK$730,818,871.00 | 27x | -23.2x | 0.5x |
| Mon, 03 Oct 2022 | HK$18.4b | HK$35.1b | -HK$727,198,400.00 | 31.6x | -25.3x | 0.5x |
| Wed, 31 Aug 2022 | HK$20.8b | HK$36.0b | HK$281.8m | 23.8x | 73.7x | 0.6x |
| Fri, 29 Jul 2022 | HK$24.9b | HK$39.7b | -HK$323,323,471.00 | 12x | -76.9x | 0.6x |
| Sun, 26 Jun 2022 | HK$26.3b | HK$39.9b | -HK$312,896,670.00 | 12.5x | -84x | 0.7x |
| Tue, 24 May 2022 | HK$26.1b | HK$39.9b | -HK$313,482,127.00 | 12.3x | -83.2x | 0.7x |
| Thu, 21 Apr 2022 | HK$27.0b | HK$41.2b | -HK$275,074,678.00 | 12.5x | -98.2x | 0.7x |
| Sat, 19 Mar 2022 | HK$27.7b | HK$43.6b | -HK$255,882,278.00 | 9.5x | -108.2x | 0.6x |
| Mon, 14 Feb 2022 | HK$29.4b | HK$43.6b | HK$1.5b | 10.2x | 19.7x | 0.7x |
| Wed, 12 Jan 2022 | HK$30.7b | HK$43.5b | HK$1.5b | 10.9x | 20.6x | 0.7x |
| Fri, 10 Dec 2021 | HK$31.3b | HK$43.6b | HK$1.5b | 10.1x | 20.9x | 0.7x |
| Sun, 07 Nov 2021 | HK$31.4b | HK$43.5b | HK$1.5b | 10.2x | 20.6x | 0.7x |
| Tue, 05 Oct 2021 | HK$31.0b | HK$42.9b | HK$1.1b | 9.5x | 29.5x | 0.7x |
| Thu, 02 Sep 2021 | HK$33.0b | HK$42.6b | HK$1.1b | 11.3x | 31.1x | 0.8x |
| Sat, 31 Jul 2021 | HK$33.7b | HK$42.6b | HK$1.1b | 11.5x | 31.8x | 0.8x |
| Tue, 04 May 2021 | HK$35.8b | HK$42.2b | HK$298.5m | 8.5x | 120.1x | 0.8x |
| Fri, 05 Feb 2021 | HK$34.1b | HK$41.7b | -HK$548,340,004.94 | 8.2x | -62.2x | 0.8x |
| Mon, 09 Nov 2020 | HK$35.1b | HK$41.1b | -HK$1,728,924,516.68 | 32.7x | -20.3x | 0.9x |
| Sun, 02 Aug 2020 | HK$38.9b | HK$40.4b | -HK$1,535,059,760.10 | 14x | -25.3x | 1x |
| Wed, 06 May 2020 | HK$42.7b | HK$41.9b | HK$468.3m | 16.4x | 91.2x | 1x |
| Sat, 08 Feb 2020 | HK$47.4b | HK$44.6b | HK$2.8b | 12.3x | 16.9x | 1.1x |
Price to Earnings Ratio
18.6x
Current Industry PE
- Investors are pessimistic on the Hong Kong Multiline Retail industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading close to its 3-year average PS ratio of 0.80x.
Past Earnings Growth
- Total earnings for the Multiline Retail industry have declined over the last three years, with the industry now making a loss overall.
- Revenues have also declined 7.6% per year, which is driving profits down.
Industry Trends
Which industries have driven the changes within the Hong Kong Consumer Discretionary industry?
| HK Market | 2.87% | |
| Consumer Discretionary | 6.65% | |
| General Merchanise and Department Stores | 6.92% | |
| Department Stores | 6.92% | |
| General Merchandise Stores | 0% | |
Industry PE
Forecasted Growth
- Analysts are most optimistic on the Department Stores industry, expecting annual earnings growth of 8.6% over the next 5 years.
- This is better than its past earnings decline of 79% per year.
- In contrast, the Department Stores industry is expected to see its earnings grow by 8.6% 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 | |
|---|---|---|---|---|---|
| 3308 Golden Eagle Retail Group | HK$5.65 | 6.4% +HK$564.5m | -14.4% | PE7.1x | |
| 2136 Lifestyle China Group | HK$0.88 | 20.5% +HK$219.7m | -33.3% | PE444.6x | |
| 825 New World Department Store China | HK$0.77 | 18.5% +HK$202.3m | -38.9% | PS0.7x | |
| 289 Wing On Company International | HK$13.20 | 3.9% +HK$145.3m | -26.4% | PE82.5x | |
| 3368 Parkson Retail Group | HK$0.17 | 28.5% +HK$97.5m | -34.5% | PS0.1x |
