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Hong Kong (HSI) Financials Sector Analysis
UpdatedDec 30, 2024
DataAggregated Company Financials
Companies196
- 7D3.8%
- 3M5.1%
- 1Y29.6%
- YTD31.8%
In the last week, the Financials industry is up 3.8%, with Industrial and Commercial Bank of China up 6.6%. In the last 12 months, the industry was up 30%. Looking forward, earnings are forecast to grow by 4.6% annually.
Sector Valuation and Performance
Has the Hong Kong Financials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 30 Dec 2024 | HK$13.5t | HK$6.3t | HK$1.9t | 9.3x | 7.2x | 2.1x |
| Wed, 27 Nov 2024 | HK$12.7t | HK$6.4t | HK$1.9t | 9.3x | 6.7x | 2x |
| Fri, 25 Oct 2024 | HK$13.2t | HK$6.4t | HK$1.8t | 10.7x | 7.3x | 2.1x |
| Sun, 22 Sep 2024 | HK$11.8t | HK$6.5t | HK$1.8t | 8.3x | 6.4x | 1.8x |
| Tue, 20 Aug 2024 | HK$12.1t | HK$6.3t | HK$1.8t | 8.2x | 6.7x | 1.9x |
| Thu, 18 Jul 2024 | HK$11.7t | HK$6.2t | HK$1.8t | 7.9x | 6.6x | 1.9x |
| Sat, 15 Jun 2024 | HK$11.5t | HK$6.2t | HK$1.8t | 7.8x | 6.5x | 1.8x |
| Mon, 13 May 2024 | HK$11.9t | HK$6.3t | HK$1.8t | 8.1x | 6.7x | 1.9x |
| Wed, 10 Apr 2024 | HK$11.0t | HK$6.3t | HK$1.8t | 7.6x | 6.1x | 1.7x |
| Fri, 08 Mar 2024 | HK$11.2t | HK$7.0t | HK$1.8t | 7.1x | 6.3x | 1.6x |
| Sun, 04 Feb 2024 | HK$10.6t | HK$6.8t | HK$1.7t | 7.1x | 6.2x | 1.6x |
| Tue, 02 Jan 2024 | HK$11.4t | HK$8.7t | HK$1.9t | 7.1x | 6x | 1.3x |
| Thu, 30 Nov 2023 | HK$11.3t | HK$8.7t | HK$1.9t | 7.2x | 6x | 1.3x |
| Sat, 28 Oct 2023 | HK$11.4t | HK$8.5t | HK$1.8t | 7x | 6.2x | 1.3x |
| Mon, 25 Sep 2023 | HK$11.7t | HK$8.5t | HK$1.8t | 7.3x | 6.4x | 1.4x |
| Wed, 23 Aug 2023 | HK$11.4t | HK$8.2t | HK$1.8t | 7.8x | 6.2x | 1.4x |
| Fri, 21 Jul 2023 | HK$11.6t | HK$8.3t | HK$1.9t | 7.9x | 6.2x | 1.4x |
| Sun, 18 Jun 2023 | HK$10.8t | HK$7.6t | HK$1.5t | 8x | 7.2x | 1.4x |
| Tue, 16 May 2023 | HK$13.4t | HK$8.6t | HK$1.9t | 7.8x | 7x | 1.6x |
| Thu, 13 Apr 2023 | HK$12.4t | HK$8.6t | HK$1.9t | 7.4x | 6.5x | 1.4x |
| Sat, 11 Mar 2023 | HK$12.0t | HK$8.7t | HK$2.0t | 6.9x | 6.1x | 1.4x |
| Mon, 06 Feb 2023 | HK$12.3t | HK$8.8t | HK$2.0t | 7x | 6.1x | 1.4x |
| Wed, 04 Jan 2023 | HK$12.1t | HK$8.6t | HK$2.0t | 7x | 6.2x | 1.4x |
| Fri, 02 Dec 2022 | HK$11.4t | HK$8.2t | HK$1.9t | 7.2x | 6x | 1.4x |
| Sun, 30 Oct 2022 | HK$10.0t | HK$8.1t | HK$1.9t | 5.8x | 5.3x | 1.2x |
| Tue, 27 Sep 2022 | HK$10.9t | HK$8.2t | HK$1.9t | 6.5x | 5.8x | 1.3x |
| Thu, 25 Aug 2022 | HK$11.3t | HK$8.6t | HK$2.0t | 6.3x | 5.7x | 1.3x |
| Sat, 23 Jul 2022 | HK$11.7t | HK$8.7t | HK$2.0t | 7.1x | 5.8x | 1.3x |
| Mon, 20 Jun 2022 | HK$12.5t | HK$8.8t | HK$2.0t | 7x | 6.2x | 1.4x |
| Wed, 18 May 2022 | HK$12.1t | HK$8.7t | HK$2.0t | 6.6x | 6x | 1.4x |
| Fri, 15 Apr 2022 | HK$13.1t | HK$9.1t | HK$2.1t | 6.8x | 6.2x | 1.4x |
| Sun, 13 Mar 2022 | HK$12.7t | HK$9.2t | HK$2.2t | 5.6x | 5.9x | 1.4x |
| Tue, 08 Feb 2022 | HK$13.6t | HK$9.2t | HK$2.1t | 6.3x | 6.4x | 1.5x |
| Thu, 06 Jan 2022 | HK$13.1t | HK$9.1t | HK$2.1t | 6x | 6.2x | 1.4x |
Price to Earnings Ratio
6.2x
Current Industry PE
- Investors are optimistic on the Hong Kong Financials industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 7.2x which is higher than its 3-year average PE of 6.3x.
- The 3-year average PS ratio of 1.5x is lower than the industry's current PS ratio of 2.1x.
Past Earnings Growth
- The earnings for companies in the Financials industry have declined 4.0% per year over the last three years,
- Revenues have also declined 11% per year.
- This means overall sales from these companies are declining and profits are subsequently falling as well.
Industry Trends
Which industries have driven the changes within the Hong Kong Financials sector?
| HK Market | 2.11% | |
| Financials | 3.84% | |
| Banks | 4.67% | |
| Insurance | 1.87% | |
| Diversified Financial | 1.40% | |
| Capital Markets | 1.14% | |
| Mortgage Finance | 0% | |
| Mortgage REITs | 0% | |
| Consumer Finance | -1.52% | |
Industry PE
- Investors are most optimistic about the Capital Markets industry which is trading above its 3-year average PE ratio of 25.8x.
- Analysts are expecting annual earnings growth of 21.0%, which is higher than its past year's earnings decline of 41.9% per year.
- Investors are most pessimistic about the Banks industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 4.9x.
Forecasted Growth
- Analysts are most optimistic on the Consumer Finance industry, expecting annual earnings growth of 39% over the next 5 years.
- This is better than its past earnings decline of 2.1% per year.
- In contrast, the Insurance industry is expected to see its earnings decline by 3.8% 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 | |
|---|---|---|---|---|---|
| 1288 Agricultural Bank of China | HK$4.42 | 2.8% +HK$42.0b | 46.8% | PB0.5x | |
| 1398 Industrial and Commercial Bank of China | HK$5.17 | 1.8% +HK$32.1b | 35.3% | PB0.5x | |
| 3328 Bank of Communications | HK$6.40 | 4.2% +HK$19.3b | 31.4% | PB0.4x | |
| 3988 Bank of China | HK$3.95 | 1.5% +HK$17.7b | 32.6% | PB0.4x | |
| 998 China CITIC Bank | HK$5.37 | 5.1% +HK$13.9b | 45.9% | PB0.3x |