Calculating The Intrinsic Value Of Texhong International Group Limited (HKG:2678)
Dec 09
Hong Kong (HSI) Luxury Industry Analysis
UpdatedDec 08, 2023
DataAggregated Company Financials
Companies116
- 7D-2.9%
- 3M-13.1%
- 1Y-22.3%
- YTD-26.6%
Over the last 7 days, the Luxury industry has dropped 2.9%, driven by a pullback from ANTA Sports Products of 7.0%. However, the industry is down 22% over the past year. As for the next few years, earnings are expected to grow by 15% per annum.
Industry Valuation and Performance
Has the Hong Kong Luxury Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sat, 09 Dec 2023 | HK$713.4b | HK$526.9b | HK$35.2b | 8.9x | 20.2x | 1.4x |
| Mon, 06 Nov 2023 | HK$807.8b | HK$525.5b | HK$35.0b | 8.3x | 23.1x | 1.5x |
| Wed, 04 Oct 2023 | HK$803.6b | HK$526.2b | HK$35.0b | 8.4x | 23x | 1.5x |
| Fri, 01 Sep 2023 | HK$833.4b | HK$525.8b | HK$34.8b | 8.4x | 23.9x | 1.6x |
| Sun, 30 Jul 2023 | HK$883.9b | HK$531.4b | HK$36.7b | 10.1x | 24.1x | 1.7x |
| Tue, 27 Jun 2023 | HK$813.9b | HK$527.7b | HK$35.9b | 9.3x | 22.7x | 1.5x |
| Thu, 25 May 2023 | HK$827.9b | HK$535.8b | HK$35.3b | 9.3x | 23.5x | 1.5x |
| Sat, 22 Apr 2023 | HK$951.8b | HK$540.7b | HK$35.7b | 9.3x | 26.6x | 1.8x |
| Mon, 20 Mar 2023 | HK$948.3b | HK$542.1b | HK$38.9b | 7.9x | 24.4x | 1.7x |
| Wed, 15 Feb 2023 | HK$1.0t | HK$541.5b | HK$39.7b | 9x | 26.1x | 1.9x |
| Fri, 13 Jan 2023 | HK$1.0t | HK$541.8b | HK$39.8b | 8.5x | 25.5x | 1.9x |
| Sun, 11 Dec 2022 | HK$930.2b | HK$532.1b | HK$38.9b | 8.8x | 23.9x | 1.7x |
| Tue, 08 Nov 2022 | HK$779.4b | HK$514.3b | HK$34.8b | 8.5x | 22.4x | 1.5x |
| Thu, 06 Oct 2022 | HK$872.4b | HK$516.9b | HK$35.1b | 8.6x | 24.8x | 1.7x |
| Sat, 03 Sep 2022 | HK$905.1b | HK$524.2b | HK$35.7b | 8.8x | 25.3x | 1.7x |
| Mon, 01 Aug 2022 | HK$907.1b | HK$509.3b | HK$40.3b | 8.3x | 22.5x | 1.8x |
| Wed, 29 Jun 2022 | HK$1.0t | HK$507.7b | HK$40.1b | 8.5x | 25x | 2x |
| Fri, 27 May 2022 | HK$850.8b | HK$507.6b | HK$42.4b | 7.9x | 20.1x | 1.7x |
| Sun, 24 Apr 2022 | HK$947.3b | HK$511.2b | HK$37.8b | 8.5x | 25.1x | 1.9x |
| Tue, 22 Mar 2022 | HK$946.1b | HK$504.2b | HK$40.7b | 9.1x | 23.3x | 1.9x |
| Thu, 17 Feb 2022 | HK$1.2t | HK$480.8b | HK$34.2b | 9.5x | 34.6x | 2.5x |
| Sat, 15 Jan 2022 | HK$1.1t | HK$479.6b | HK$34.1b | 9.7x | 33.2x | 2.4x |
| Mon, 13 Dec 2021 | HK$1.2t | HK$465.3b | HK$32.3b | 10x | 38.3x | 2.7x |
| Wed, 10 Nov 2021 | HK$1.2t | HK$467.5b | HK$30.0b | 9x | 40.8x | 2.6x |
| Fri, 08 Oct 2021 | HK$1.2t | HK$466.4b | HK$29.8b | 8.8x | 40.7x | 2.6x |
| Sun, 05 Sep 2021 | HK$1.4t | HK$478.2b | HK$30.2b | 9.4x | 46.1x | 2.9x |
| Tue, 03 Aug 2021 | HK$1.4t | HK$478.2b | HK$30.2b | 9.7x | 46.2x | 2.9x |
| Fri, 07 May 2021 | HK$1.2t | HK$450.6b | HK$21.7b | 10.9x | 55x | 2.6x |
| Mon, 08 Feb 2021 | HK$1.0t | HK$426.2b | HK$7.7b | 11.4x | 134.5x | 2.4x |
Price to Earnings Ratio
138.5x
Current Industry PE
- Investors are pessimistic on the Hong Kong Luxury 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 20.2x which is lower than its 3-year average PE of 39.7x.
- The 3-year average PS ratio of 2.1x is higher than the industry's current PS ratio of 1.4x.
Past Earnings Growth
- The earnings for companies in the Luxury industry have grown 67% per year over the last three years.
- Revenues for these companies have grown 7.3% 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 | -3.37% | |
| Consumer Discretionary | -2.82% | |
| Luxury | -2.93% | |
| Textiles | 4.77% | |
| Apparel, Accessories and Luxury Goods | -3.02% | |
| Footwear | -6.72% | |
Industry PE
- Investors are most optimistic about the Apparel, Accessories and Luxury Goods industry which is trading above its 3-year average PE ratio.
- Analysts are expecting annual earnings growth of 14.3%, which is higher than its past year's earnings growth of 11.0% per year.
Forecasted Growth
- Analysts are most optimistic on the Textiles industry, expecting annual earnings growth of 78% over the next 5 years.
- This is better than its past earnings decline of 32% per year.
- In contrast, the Apparel, Accessories and Luxury Goods industry is expected to see its earnings grow by 14% 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 | |
|---|---|---|---|---|---|
| 1913 Prada | HK$44.15 | 4.0% +HK$4.4b | -2.3% | PE23x | |
| 2698 Weiqiao Textile | HK$3.37 | 97.1% +HK$2.0b | 142.4% | PS0.2x | |
| 3998 Bosideng International Holdings | HK$3.39 | 3.4% +HK$1.2b | -13.1% | PE14.5x | |
| 2232 Crystal International Group | HK$2.94 | 8.9% +HK$684.7m | 17.6% | PE6.3x | |
| 2668 Pak Tak International | HK$0.17 | 254.2% +HK$571.0m | 25.9% | PS1.8x |
