Calculating The Fair Value Of Li Ning Company Limited (HKG:2331)
How far off is Li Ning Company Limited ( HKG:2331 ) from its intrinsic value? Using the most recent financial data...
Hong Kong (HSI) Luxury Industry Analysis
UpdatedDec 01, 2021
DataAggregated Company Financials
Companies112
- 7D-4.8%
- 3M-14.9%
- 1Y28.9%
- YTD12.7%
Over the last 7 days, the Luxury industry has dropped 4.8%, driven by pullbacks in Shenzhou International Group Holdings and ANTA Sports Products of 6.8% and 4.6%, respectively. Meanwhile, 361 Degrees International actually outperformed within the industry, gaining 7.7% in the last week. This takes the industry's 12 month performance to a gain of 29%.
Industry Valuation and Performance
Has the Hong Kong Luxury Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Wed, 01 Dec 2021 | HK$1.2t | HK$464.6b | HK$32.2b | 9.8x |
| Fri, 29 Oct 2021 | HK$1.2t | HK$468.2b | HK$30.1b | 8.7x |
| Sun, 26 Sep 2021 | HK$1.2t | HK$465.6b | HK$29.6b | 9.1x |
| Tue, 24 Aug 2021 | HK$1.4t | HK$478.2b | HK$30.2b | 9.3x |
| Wed, 30 Jun 2021 | HK$1.5t | HK$478.2b | HK$30.2b | 10.2x |
| Sat, 03 Apr 2021 | HK$1.1t | HK$450.6b | HK$21.6b | 11.3x |
| Tue, 05 Jan 2021 | HK$1.0t | HK$426.0b | HK$7.5b | 10.9x |
| Fri, 09 Oct 2020 | HK$748.8b | HK$426.3b | HK$5.2b | 10.9x |
| Thu, 02 Jul 2020 | HK$622.5b | HK$433.5b | HK$3.5b | 12.1x |
| Sun, 05 Apr 2020 | HK$559.1b | HK$459.9b | HK$9.9b | 9.8x |
| Wed, 08 Jan 2020 | HK$744.0b | HK$487.9b | HK$25.9b | 10.2x |
| Tue, 01 Oct 2019 | HK$687.4b | HK$479.8b | HK$28.1b | 10x |
| Fri, 05 Jul 2019 | HK$668.0b | HK$482.8b | HK$28.7b | 10.1x |
| Mon, 08 Apr 2019 | HK$694.7b | HK$482.5b | HK$27.8b | 10.8x |
| Thu, 10 Jan 2019 | HK$595.2b | HK$473.9b | HK$25.5b | 9.8x |
PE Ratio
10.1x
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 10.4x. It appears they believe that earnings will grow in-line with historical growth rates.
Past Earnings Growth: The earnings for companies in the Luxury industry have grown 5.2% per year over the last three years, while revenues have remained mostly flat. This means that companies overall are more efficiently conducting business since profits are increasing while sales have been flat.
Industry Trends
Which industries have driven the changes within the Hong Kong Luxury industry?
| Textiles | -0.91% | |
| Apparel, Accessories and Luxury Goods | -4.82% | |
| Footwear | -4.97% | |
Industry PE: Investors are most optimistic about the Footwear industry which is trading above its 3-year average PE ratio of 20.4x. This is likely because analysts are expecting annual earnings growth of 26%, which is higher than its past year's earnings growth of 4.3% per year. Meanwhile, investors are most pessimistic about the Textiles industry, which is trading close to its 3-year average of 9.1x.
Forecasted Growth: Analysts are most optimistic on the Footwear industry, expecting annual earnings growth of 26% over the next 5 years. This is better than it's past earnings growth rate of 4.3% per year. Meanwhile, the Textiles industry is expected to see its earnings grow by 8.3% 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 | |
|---|---|---|---|---|
| 1361 361 Degrees International | 7.7%+HK$578.9m | 314.9% | PE12.8x | |
| 256 Citychamp Watch & Jewellery Group | 2.3%+HK$130.6m | -17.9% | PS2.8x | |
| 3306 JNBY Design | 1.5%+HK$99.7m | 47.5% | PE8.3x | |
| 1982 Nameson Holdings | 8.0%+HK$91.2m | 8.0% | PE4.6x | |
| 483 Bauhaus International (Holdings) | 22.6%+HK$88.2m | 64.6% | PE2.8x |
