A Look At The Fair Value Of Tsingtao Brewery Company Limited (HKG:168)
In this article we are going to estimate the intrinsic value of Tsingtao Brewery Company Limited ( HKG:168 ) by taking...
Hong Kong (HSI) Beverage Industry Analysis
UpdatedJan 20, 2022
DataAggregated Company Financials
Companies13
- 7D-2.1%
- 3M7.0%
- 1Y-24.7%
- YTD-11.5%
Over the last 7 days, the Beverage industry has dropped 1.3%, driven by a pullback from Nongfu Spring of 2.6%. However, the industry is down 25% over the past year.
Industry Valuation and Performance
Has the Hong Kong Beverage Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Thu, 20 Jan 2022 | HK$1.1t | HK$188.1b | HK$22.6b | 26.3x |
| Sat, 18 Dec 2021 | HK$1.2t | HK$188.1b | HK$22.6b | 28x |
| Mon, 15 Nov 2021 | HK$1.1t | HK$187.6b | HK$22.5b | 25.6x |
| Wed, 13 Oct 2021 | HK$1.0t | HK$185.6b | HK$21.9b | 25.2x |
| Fri, 10 Sep 2021 | HK$1.0t | HK$185.2b | HK$21.9b | 35.5x |
| Sun, 08 Aug 2021 | HK$1.1t | HK$185.2b | HK$21.9b | 33.5x |
| Sat, 01 May 2021 | HK$1.1t | HK$177.1b | HK$15.9b | 30.2x |
| Tue, 02 Feb 2021 | HK$1.4t | HK$164.1b | HK$7.9b | 47.8x |
| Fri, 06 Nov 2020 | HK$977.6b | HK$159.8b | HK$7.0b | 39.1x |
| Mon, 10 Aug 2020 | HK$674.8b | HK$129.9b | -HK$277,044,929.25 | 32x |
| Sun, 03 May 2020 | HK$490.1b | HK$132.2b | HK$6.4b | 30.8x |
| Wed, 05 Feb 2020 | HK$519.3b | HK$142.4b | HK$15.1b | 30x |
| Sat, 09 Nov 2019 | HK$609.5b | HK$141.5b | HK$16.4b | 28.5x |
| Fri, 02 Aug 2019 | HK$223.4b | HK$92.2b | HK$10.3b | 32x |
| Mon, 06 May 2019 | HK$225.5b | HK$92.6b | HK$7.4b | 24.9x |
| Thu, 07 Feb 2019 | HK$180.5b | HK$88.2b | HK$4.3b | 25.6x |
PE Ratio
25.6x
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 32.6x. It appears they believe that earnings will grow in-line with historical growth rates.
Past Earnings Growth: The earnings for companies in the Beverage industry have grown 74% per year over the last three years, and revenues for these companies have grown 29% 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 Beverage industry?
| Distillers and Wine Makers | -1.35% | |
| Brewers | -1.75% | |
| Soft Drinks | -2.53% | |
Industry PE: Investors are most optimistic about the Soft Drinks industry which is trading above its 3-year average PE ratio of 26.9x. However analysts are expecting annual earnings growth of 13%, which is lower than the prior year's growth of 30% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Distillers and Wine Makers industry, which is trading below its 3-year average of 293x.
Forecasted Growth: Analysts are most optimistic on the Brewers industry, expecting annual earnings growth of 14% over the next 5 years. However this is lower than its past earnings growth rate of 42% per year. Meanwhile, the Soft Drinks industry is expected to see its earnings grow by 13% 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 | |
|---|---|---|---|---|---|
| 168 Tsingtao Brewery | HK$69.95 | 4.4% +HK$4.0b | -8.9% | PE27.4x | |
| 1876 Budweiser Brewing Company APAC | HK$20.45 | 1.2% +HK$3.3b | -16.4% | PE40.2x | |
| 291 China Resources Beer (Holdings) | HK$58.50 | 0.7% +HK$1.3b | -16.8% | PE35.9x | |
| 506 China Foods | HK$3.15 | 1.6% +HK$139.9m | -11.3% | PE12.5x | |
| 472 New Silkroad Culturaltainment | HK$0.13 | 8.3% +HK$32.1m | 6.6% | PS3.5x |
