Hongkong and Shanghai Hotels' (HKG:45) Returns On Capital Tell Us There Is Reason To Feel Uneasy
Nov 20
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Hong Kong (HSI) Hospitality Industry Analysis
UpdatedNov 21, 2024
DataAggregated Company Financials
Companies88
- 7D-0.7%
- 3M42.1%
- 1Y23.8%
- YTD50.0%
In the last week, the Hospitality industry is flat overall, with Haichang Ocean Park Holdings standing out by going down 20%. The past year has been better, since the industry has gained 24% in that time. Looking forward, earnings are forecast to grow by 28% annually.
Industry Valuation and Performance
Has the Hong Kong Hospitality Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 21 Nov 2024 | HK$1.5t | HK$658.3b | HK$36.8b | 15.3x | 40.8x | 2.3x |
| Sat, 19 Oct 2024 | HK$1.6t | HK$666.3b | HK$34.9b | 17.3x | 45.4x | 2.4x |
| Mon, 16 Sep 2024 | HK$1.1t | HK$669.3b | HK$35.3b | 13.2x | 32.3x | 1.7x |
| Wed, 14 Aug 2024 | HK$1.0t | HK$625.3b | HK$28.9b | 11.8x | 35.8x | 1.7x |
| Fri, 12 Jul 2024 | HK$1.2t | HK$618.2b | HK$29.3b | 13.6x | 40.3x | 1.9x |
| Sun, 09 Jun 2024 | HK$1.2t | HK$619.0b | HK$31.2b | 13.5x | 38.8x | 2x |
| Tue, 07 May 2024 | HK$1.3t | HK$603.8b | HK$29.3b | 14.3x | 44.3x | 2.1x |
| Thu, 04 Apr 2024 | HK$1.1t | HK$597.9b | HK$28.2b | 13.5x | 40.1x | 1.9x |
| Sat, 02 Mar 2024 | HK$1.0t | HK$541.0b | HK$14.5b | 12.1x | 72.1x | 1.9x |
| Mon, 29 Jan 2024 | HK$890.2b | HK$528.1b | HK$7.6b | 11.7x | 117.4x | 1.7x |
| Wed, 27 Dec 2023 | HK$976.2b | HK$528.9b | HK$7.6b | 12.1x | 128.6x | 1.8x |
| Fri, 24 Nov 2023 | HK$1.2t | HK$510.7b | HK$5.0b | 14.2x | 251.9x | 2.4x |
| Sun, 22 Oct 2023 | HK$1.2t | HK$501.7b | HK$4.0b | 14.6x | 310.7x | 2.5x |
| Tue, 19 Sep 2023 | HK$1.4t | HK$502.6b | HK$3.7b | 17.8x | 373.8x | 2.8x |
| Thu, 17 Aug 2023 | HK$1.5t | HK$446.0b | -HK$19,413,541,625.00 | 15.9x | -76.6x | 3.3x |
| Sat, 15 Jul 2023 | HK$1.5t | HK$451.7b | -HK$19,984,506,562.00 | 15.9x | -74.2x | 3.3x |
| Mon, 12 Jun 2023 | HK$1.4t | HK$451.9b | -HK$21,364,253,274.00 | 17.3x | -66.9x | 3.2x |
| Wed, 10 May 2023 | HK$1.5t | HK$446.7b | -HK$32,027,953,755.00 | 17x | -46.2x | 3.3x |
| Fri, 07 Apr 2023 | HK$1.6t | HK$448.3b | -HK$30,997,582,302.00 | 17x | -50.3x | 3.5x |
| Sun, 05 Mar 2023 | HK$697.5b | HK$201.4b | -HK$28,839,680,476.00 | 22x | -24.2x | 3.5x |
| Tue, 31 Jan 2023 | HK$696.4b | HK$206.8b | -HK$27,065,704,497.00 | 22.2x | -25.7x | 3.4x |
| Thu, 29 Dec 2022 | HK$679.3b | HK$203.0b | -HK$26,732,655,252.00 | 20.7x | -25.4x | 3.3x |
| Sat, 26 Nov 2022 | HK$522.7b | HK$202.3b | -HK$27,547,503,960.00 | 21.9x | -19x | 2.6x |
| Mon, 24 Oct 2022 | HK$487.1b | HK$200.9b | -HK$27,009,581,621.00 | 18.4x | -18x | 2.4x |
| Wed, 21 Sep 2022 | HK$567.9b | HK$204.0b | -HK$26,518,481,031.00 | 20x | -21.4x | 2.8x |
| Fri, 19 Aug 2022 | HK$587.6b | HK$213.0b | -HK$28,866,066,883.00 | 24.4x | -20.4x | 2.8x |
| Sun, 17 Jul 2022 | HK$724.2b | HK$235.9b | -HK$37,461,187,683.00 | 23.1x | -19.3x | 3.1x |
| Tue, 14 Jun 2022 | HK$679.4b | HK$237.4b | -HK$36,372,195,935.00 | 17x | -18.7x | 2.9x |
| Thu, 12 May 2022 | HK$676.2b | HK$258.3b | -HK$44,821,103,632.00 | 19.1x | -15.1x | 2.6x |
| Sat, 09 Apr 2022 | HK$734.5b | HK$266.4b | -HK$40,926,968,431.00 | 16.1x | -17.9x | 2.8x |
| Mon, 07 Mar 2022 | HK$790.3b | HK$257.9b | -HK$40,987,196,244.00 | 20.6x | -19.3x | 3.1x |
| Wed, 02 Feb 2022 | HK$821.9b | HK$252.7b | -HK$41,158,762,336.00 | 20.6x | -20x | 3.3x |
| Fri, 31 Dec 2021 | HK$773.7b | HK$252.6b | -HK$41,148,064,229.00 | 21.6x | -18.8x | 3.1x |
| Sun, 28 Nov 2021 | HK$854.1b | HK$251.3b | -HK$40,915,098,391.00 | 20.2x | -20.9x | 3.4x |
Price to Earnings Ratio
-20.9x
Current Industry PE
- Investors are optimistic on the Hong Kong Hospitality industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 40.8x which is higher than its 3-year average PE of 29.6x.
- The 3-year average PS ratio of 2.7x is higher than the industry's current PS ratio of 2.3x.
Past Earnings Growth
- Total earnings for the Hospitality industry have gone up over the last three years, and the industry is now profitable. Revenues have grown 38% per year.
- This means that more sales are being generated by the industry overall, and subsequently profits are increasing too.
Industry Trends
Which industries have driven the changes within the Hong Kong Consumer Discretionary industry?
| HK Market | 0.42% | |
| Consumer Discretionary | -1.22% | |
| Hospitality | -0.70% | |
| Hotels, Resorts and Cruise Lines | 0.50% | |
| Restaurants | -0.35% | |
| Casinos and Gaming | -2.63% | |
| Leisure Facilities | -27.43% | |
Industry PE
- Investors are most optimistic about the Restaurants industry even though it's trading below its 3-year average PE ratio of 106x.
- Analysts are expecting annual earnings growth of 28.1%, which is higher than its past year's earnings growth of 10.1% per year.
Forecasted Growth
- Analysts are most optimistic on the Leisure Facilities industry, expecting annual earnings growth of 102% over the next 5 years.
- In contrast, the Hotels, Resorts and Cruise Lines industry is expected to see its earnings grow by 23% 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 | |
|---|---|---|---|---|---|
| 3690 Meituan | HK$172.70 | 2.0% +HK$20.2b | 53.9% | PE42.3x | |
| 1928 Sands China | HK$19.44 | 2.6% +HK$4.0b | -8.5% | PE19.1x | |
| 780 Tongcheng Travel Holdings | HK$18.04 | 5.4% +HK$2.1b | 22.9% | PE19.8x | |
| 27 Galaxy Entertainment Group | HK$33.00 | 1.2% +HK$1.7b | -24.6% | PE17.3x | |
| 2555 Sichuan Baicha Baidao Industrial | HK$9.28 | 10.1% +HK$1.3b | n/a | PE16.2x |
