If EPS Growth Is Important To You, Billion Industrial Holdings (HKG:2299) Presents An Opportunity
Nov 08
Hong Kong (HSI) Luxury Industry Analysis
UpdatedNov 27, 2022
DataAggregated Company Financials
Companies116
- 7D-5.6%
- 3M-15.7%
- 1Y-36.5%
- YTD-32.5%
Over the last 7 days, the Luxury industry has dropped 5.6%, driven by a pullback from ANTA Sports Products of 8.1%. On the other hand Crystal International Group is actually up 11%. Overall the industry is down 37% in 12 months. As for the next few years, earnings are expected to grow by 18% 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 |
|---|---|---|---|---|---|---|
| Sun, 27 Nov 2022 | HK$786.2b | HK$525.0b | HK$37.7b | 8.3x | 20.8x | 1.5x |
| Tue, 25 Oct 2022 | HK$750.9b | HK$512.2b | HK$34.6b | 8.7x | 21.7x | 1.5x |
| Thu, 22 Sep 2022 | HK$871.0b | HK$520.5b | HK$35.4b | 9.1x | 24.6x | 1.7x |
| Sat, 20 Aug 2022 | HK$931.2b | HK$515.2b | HK$38.2b | 8.5x | 24.4x | 1.8x |
| Mon, 18 Jul 2022 | HK$920.8b | HK$505.5b | HK$39.7b | 8.2x | 23.2x | 1.8x |
| Wed, 15 Jun 2022 | HK$920.3b | HK$503.1b | HK$41.8b | 8.3x | 22x | 1.8x |
| Fri, 13 May 2022 | HK$900.7b | HK$503.1b | HK$41.3b | 8x | 21.8x | 1.8x |
| Sun, 10 Apr 2022 | HK$919.6b | HK$516.6b | HK$38.4b | 8.6x | 23.9x | 1.8x |
| Tue, 08 Mar 2022 | HK$992.3b | HK$481.2b | HK$34.2b | 9.3x | 29x | 2.1x |
| Thu, 03 Feb 2022 | HK$1.1t | HK$479.3b | HK$34.0b | 9.2x | 32.9x | 2.3x |
| Sat, 01 Jan 2022 | HK$1.2t | HK$479.1b | HK$34.0b | 10x | 34.6x | 2.5x |
| Mon, 29 Nov 2021 | HK$1.2t | HK$463.6b | HK$32.0b | 9.8x | 37.6x | 2.6x |
| Wed, 27 Oct 2021 | HK$1.3t | HK$468.0b | HK$30.1b | 8.8x | 41.8x | 2.7x |
| Fri, 24 Sep 2021 | HK$1.3t | HK$465.9b | HK$29.6b | 9.1x | 43.6x | 2.8x |
| Sun, 22 Aug 2021 | HK$1.3t | HK$478.2b | HK$30.2b | 9.1x | 44.4x | 2.8x |
| Fri, 09 Jul 2021 | HK$1.5t | HK$478.2b | HK$30.2b | 10.2x | 49.5x | 3.1x |
| Thu, 01 Apr 2021 | HK$1.1t | HK$450.6b | HK$21.6b | 11.3x | 50.5x | 2.4x |
| Sun, 03 Jan 2021 | HK$1.0t | HK$426.0b | HK$7.5b | 10.9x | 138.5x | 2.5x |
| Wed, 07 Oct 2020 | HK$748.8b | HK$426.3b | HK$5.2b | 10.9x | 144.3x | 1.8x |
| Tue, 30 Jun 2020 | HK$622.5b | HK$433.5b | HK$3.5b | 12.1x | 179.5x | 1.4x |
| Fri, 03 Apr 2020 | HK$559.1b | HK$459.9b | HK$9.9b | 9.8x | 56.3x | 1.2x |
| Mon, 06 Jan 2020 | HK$744.0b | HK$487.9b | HK$25.9b | 10.2x | 28.7x | 1.5x |
Price to Earnings Ratio
26.3x
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 20.8x which is lower than its 3-year average PE of 67.9x.
- The 3-year average PS ratio of 2.0x is higher than the industry's current PS ratio of 1.5x.
Past Earnings Growth
- The earnings for companies in the Luxury industry have grown 10% per year over the last three years.
- Revenues for these companies have grown 2.9% 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 | -0.24% | |
| Consumer Discretionary | -8.27% | |
| Luxury | -5.61% | |
| Textiles | 1.25% | |
| Apparel, Accessories and Luxury Goods | -5.75% | |
| Footwear | -7.39% | |
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 18.8%, which is higher than its past year's earnings growth of 13.4% per year.
- Investors are most pessimistic about the Textiles industry, which is trading below its 3-year average of 9.3x.
Forecasted Growth
- Analysts are most optimistic on the Apparel, Accessories and Luxury Goods industry, expecting annual earnings growth of 19% over the next 5 years.
- This is better than its past earnings growth rate of 13% per year.
- In contrast, the Textiles industry is expected to see its earnings grow by 11% 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 | |
|---|---|---|---|---|---|
| 2232 Crystal International Group | HK$2.25 | 10.8% +HK$627.6m | -18.2% | PE4.7x | |
| 2299 Billion Industrial Holdings | HK$4.79 | 3.0% +HK$296.7m | n/a | PE5.8x | |
| 3818 China Dongxiang (Group) | HK$0.32 | 12.3% +HK$205.3m | -54.9% | PS0.9x | |
| 2199 Regina Miracle International (Holdings) | HK$3.52 | 2.9% +HK$122.4m | -45.7% | PE8.3x | |
| 1440 Deyun Holding | HK$0.90 | 8.4% +HK$88.2m | 60.7% | PE168.2x |