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Hong Kong (HSI) Financials Sector Analysis

UpdatedDec 02, 2021
DataAggregated Company Financials
Companies191
  • 7D1.4%
  • 3M-4.0%
  • 1Y-12.1%
  • YTD-11.0%

Over the last 7 days, the Financials industry has risen 1.4%, driven by gains in Industrial and Commercial Bank of China and China Construction Bank of 4.1% and 4.5%, respectively. However, the industry is down 12% over the past year.

Sector Valuation and Performance

Has the Hong Kong Financials Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPE
Sat, 04 Dec 2021HK$12.7tHK$9.1tHK$2.1t6x
Mon, 01 Nov 2021HK$13.0tHK$9.0tHK$2.1t6.5x
Wed, 29 Sep 2021HK$12.9tHK$8.7tHK$2.0t6.3x
Fri, 27 Aug 2021HK$13.1tHK$8.7tHK$2.0t7.2x
Sat, 03 Jul 2021HK$14.2tHK$8.7tHK$2.0t7.3x
Tue, 06 Apr 2021HK$14.9tHK$8.4tHK$1.9t8.4x
Fri, 08 Jan 2021HK$14.5tHK$8.3tHK$1.9t9.2x
Thu, 01 Oct 2020HK$13.0tHK$7.9tHK$1.7t8.1x
Sun, 05 Jul 2020HK$12.8tHK$7.5tHK$1.6t9.9x
Wed, 08 Apr 2020HK$12.6tHK$7.4tHK$1.7t9.1x
Tue, 31 Dec 2019HK$14.8tHK$7.6tHK$1.8t9.6x
Fri, 04 Oct 2019HK$13.2tHK$7.2tHK$1.8t9.8x
Mon, 08 Jul 2019HK$14.6tHK$7.3tHK$1.8t11x
Sun, 31 Mar 2019HK$14.8tHK$7.3tHK$1.7t12.6x
Wed, 02 Jan 2019HK$12.9tHK$6.9tHK$1.6t12.1x
PE Ratio

12.1x

Total Market Cap: HK$12.9tTotal Earnings: HK$1.6tTotal Revenue: HK$6.9t0%0%0%3 Year10 Year
20202021

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 9.4x. It appears they believe that earnings will grow in-line with historical growth rates.

Past Earnings Growth: The earnings for companies in the Financials industry have grown 9.3% per year over the last three years, and revenues for these companies have grown 9.6% 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 Financials sector?

Capital Markets2.91%
Banks2.34%
Mortgage Finance1.67%
Consumer Finance0.47%
Diversified Financial-0.42%
Insurance-1.39%

Industry PE: Investors are most optimistic about the Capital Markets industry even though it's trading below its 3-year average PE ratio of 14.1x. However analysts are expecting annual earnings growth of 16%, which is lower than the prior year's growth of 63% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Mortgage Finance industry, which is trading close to its 3-year average of 4.0x.

Forecasted Growth: Analysts are most optimistic on the Capital Markets industry, expecting annual earnings growth of 16% over the next 5 years. However this is lower than its past earnings growth rate of 63% per year. Meanwhile, the Consumer Finance industry is expected to see its earnings growth to stay flat over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

Company7D1YValuation
1398 Industrial and Commercial Bank of China4.1%+HK$60.6b-12.6%PB0.4x
939 China Construction Bank4.5%+HK$57.5b-12.5%PB0.4x
1288 Agricultural Bank of China2.3%+HK$21.0b-8.2%PB0.3x
1658 Postal Savings Bank of China2.4%+HK$12.0b26.6%PB0.6x
3908 China International Capital10.4%+HK$9.3b9.0%PE8.4x
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