Returns On Capital Are Showing Encouraging Signs At Tsingtao Brewery (HKG:168)
Jan 19
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Hong Kong (HSI) Beverage Industry Analysis
UpdatedJan 21, 2025
DataAggregated Company Financials
Companies13
- 7D4.6%
- 3M2.1%
- 1Y-13.6%
- YTD3.0%
The Beverage industry is up 4.9% in the last week, with Nongfu Spring up 6.0%. However, the industry is down 17% over the past year. As for the next few years, earnings are expected to grow by 11% per annum.
Industry Valuation and Performance
Has the Hong Kong Beverage Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 21 Jan 2025 | HK$721.4b | HK$219.0b | HK$32.6b | 16.3x | 22.2x | 3.3x |
| Thu, 19 Dec 2024 | HK$737.0b | HK$219.3b | HK$32.6b | 16.5x | 22.6x | 3.4x |
| Sat, 16 Nov 2024 | HK$687.7b | HK$221.2b | HK$32.8b | 15.1x | 21x | 3.1x |
| Mon, 14 Oct 2024 | HK$726.2b | HK$211.9b | HK$32.8b | 18.4x | 22.1x | 3.4x |
| Wed, 11 Sep 2024 | HK$570.9b | HK$211.4b | HK$32.7b | 13.3x | 17.4x | 2.7x |
| Fri, 09 Aug 2024 | HK$650.4b | HK$210.1b | HK$32.8b | 13.9x | 19.8x | 3.1x |
| Sun, 07 Jul 2024 | HK$719.1b | HK$210.1b | HK$32.8b | 13.9x | 21.9x | 3.4x |
| Tue, 04 Jun 2024 | HK$847.6b | HK$210.7b | HK$32.9b | 16.3x | 25.8x | 4x |
| Thu, 02 May 2024 | HK$928.6b | HK$211.3b | HK$33.0b | 15.5x | 28.2x | 4.4x |
| Sat, 30 Mar 2024 | HK$891.7b | HK$212.2b | HK$33.2b | 15.9x | 26.8x | 4.2x |
| Mon, 26 Feb 2024 | HK$940.0b | HK$204.3b | HK$30.6b | 17.9x | 30.7x | 4.6x |
| Wed, 24 Jan 2024 | HK$814.6b | HK$205.1b | HK$29.3b | 14.6x | 27.8x | 4x |
| Fri, 22 Dec 2023 | HK$932.1b | HK$205.4b | HK$29.3b | 16.7x | 31.8x | 4.5x |
| Sun, 19 Nov 2023 | HK$979.5b | HK$203.6b | HK$29.0b | 19.1x | 33.7x | 4.8x |
| Tue, 17 Oct 2023 | HK$991.3b | HK$202.6b | HK$28.8b | 19.7x | 34.4x | 4.9x |
| Thu, 14 Sep 2023 | HK$1.0t | HK$203.4b | HK$28.9b | 19.2x | 35.5x | 5x |
| Sat, 12 Aug 2023 | HK$1.0t | HK$194.7b | HK$25.3b | 25.7x | 41.3x | 5.4x |
| Mon, 10 Jul 2023 | HK$1.0t | HK$194.0b | HK$25.6b | 24.4x | 40.5x | 5.4x |
| Wed, 07 Jun 2023 | HK$1.1t | HK$196.4b | HK$26.0b | 23.6x | 41.3x | 5.5x |
| Fri, 05 May 2023 | HK$1.1t | HK$200.8b | HK$26.6b | 25.4x | 42.7x | 5.7x |
| Sun, 02 Apr 2023 | HK$1.2t | HK$195.3b | HK$25.3b | 28.1x | 47.1x | 6.1x |
| Tue, 28 Feb 2023 | HK$1.1t | HK$192.6b | HK$25.1b | 22x | 45.5x | 5.9x |
| Thu, 26 Jan 2023 | HK$1.2t | HK$195.5b | HK$25.5b | 22x | 45.5x | 5.9x |
| Sat, 24 Dec 2022 | HK$1.2t | HK$190.9b | HK$24.9b | 22.8x | 46.2x | 6x |
| Mon, 21 Nov 2022 | HK$1.1t | HK$188.8b | HK$24.6b | 20.5x | 43.6x | 5.7x |
| Wed, 19 Oct 2022 | HK$1.1t | HK$186.8b | HK$24.7b | 23.9x | 42.6x | 5.6x |
| Fri, 16 Sep 2022 | HK$1.1t | HK$191.1b | HK$25.2b | 23.5x | 43.1x | 5.7x |
| Sun, 14 Aug 2022 | HK$1.1t | HK$190.2b | HK$25.3b | 24.2x | 45.2x | 6x |
| Tue, 12 Jul 2022 | HK$1.1t | HK$191.6b | HK$25.1b | 26.3x | 44.4x | 5.8x |
| Thu, 09 Jun 2022 | HK$1.1t | HK$192.3b | HK$25.2b | 24.2x | 42.6x | 5.6x |
| Sat, 07 May 2022 | HK$956.2b | HK$192.4b | HK$25.2b | 21.4x | 38x | 5x |
| Mon, 04 Apr 2022 | HK$1.1t | HK$197.9b | HK$25.3b | 20x | 41.6x | 5.3x |
| Wed, 02 Mar 2022 | HK$1.2t | HK$191.4b | HK$23.4b | 30.4x | 53.1x | 6.5x |
| Fri, 28 Jan 2022 | HK$1.1t | HK$188.6b | HK$22.6b | 27.9x | 50.3x | 6x |
Price to Earnings Ratio
50.3x
Current Industry PE
- Investors are pessimistic on the Hong Kong Beverage 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 21.9x which is lower than its 3-year average PE of 35.9x.
- The 3-year average PS ratio of 4.9x is higher than the industry's current PS ratio of 3.3x.
Past Earnings Growth
- The earnings for companies in the Beverage industry have grown 13% per year over the last three years.
- Revenues for these companies have grown 5.1% 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 Staples industry?
| HK Market | 3.38% | |
| Consumer Staples | 4.52% | |
| Beverage | 4.57% | |
| Soft Drinks | 5.68% | |
| Distillers and Wine Makers | 4.27% | |
| Brewers | 2.79% | |
Industry PE
- Investors are most optimistic about the Soft Drinks industry even though it's trading below its 3-year average PE ratio of 45.0x.
- Analysts are expecting annual earnings growth of 10.5%, which is lower than the prior year's growth of 29.8% per year.
- Investors are most pessimistic about the Distillers and Wine Makers industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 2.5x.
Forecasted Growth
- Analysts are most optimistic on the Distillers and Wine Makers industry, expecting annual earnings growth of 21% over the next 5 years.
- This is better than its past earnings decline of 29% per year.
- In contrast, the Brewers industry is expected to see its earnings grow by 10% 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 | |
|---|---|---|---|---|---|
| 9633 Nongfu Spring | HK$35.45 | 6.0% +HK$22.5b | -10.5% | PE29.9x | |
| 291 China Resources Beer (Holdings) | HK$23.75 | 3.0% +HK$2.3b | -17.5% | PE13.9x | |
| 168 Tsingtao Brewery | HK$53.25 | 3.1% +HK$2.2b | 21.4% | PE15.7x | |
| 1876 Budweiser Brewing Company APAC | HK$7.14 | 2.3% +HK$2.1b | -38.1% | PE16.8x | |
| 6979 ZJLD Group | HK$6.68 | 4.4% +HK$948.8m | -16.4% | PE14.2x |
