Hong Kong (HSI) Financials Sector Analysis
UpdatedDec 09, 2023
DataAggregated Company Financials
Companies204
- 7D-2.1%
- 3M-6.8%
- 1Y-12.4%
- YTD-14.8%
In the last week, the Financials industry is down 2.9% with Ping An Insurance (Group) Company of China down the most at 6.4%. However, the industry is down 11% over the past year. As for the next few years, earnings are expected to grow by 12% per annum.
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 |
|---|---|---|---|---|---|---|
| Sat, 09 Dec 2023 | HK$11.1t | HK$8.7t | HK$1.9t | 7x | 5.9x | 1.3x |
| Mon, 06 Nov 2023 | HK$11.4t | HK$8.5t | HK$1.8t | 7.3x | 6.2x | 1.3x |
| Wed, 04 Oct 2023 | HK$11.6t | HK$8.5t | HK$1.8t | 7.3x | 6.3x | 1.4x |
| Fri, 01 Sep 2023 | HK$11.5t | HK$8.6t | HK$1.8t | 7.6x | 6.3x | 1.3x |
| Sun, 30 Jul 2023 | HK$12.3t | HK$8.4t | HK$1.9t | 7.8x | 6.6x | 1.5x |
| Tue, 27 Jun 2023 | HK$12.1t | HK$8.3t | HK$1.8t | 7.5x | 6.5x | 1.5x |
| Thu, 25 May 2023 | HK$12.5t | HK$8.5t | HK$1.9t | 7.8x | 6.6x | 1.5x |
| Sat, 22 Apr 2023 | HK$12.6t | HK$8.6t | HK$1.9t | 7.8x | 6.6x | 1.5x |
| Mon, 20 Mar 2023 | HK$12.2t | HK$8.6t | HK$1.9t | 6.9x | 6.3x | 1.4x |
| Wed, 15 Feb 2023 | HK$12.3t | HK$8.7t | HK$2.0t | 7.1x | 6.1x | 1.4x |
| Fri, 13 Jan 2023 | HK$12.5t | HK$8.8t | HK$2.0t | 7x | 6.3x | 1.4x |
| Sun, 11 Dec 2022 | HK$11.9t | HK$8.5t | HK$1.9t | 7.3x | 6.1x | 1.4x |
| Tue, 08 Nov 2022 | HK$10.4t | HK$8.2t | HK$1.9t | 6.7x | 5.5x | 1.3x |
| Thu, 06 Oct 2022 | HK$10.9t | HK$8.3t | HK$1.9t | 6.5x | 5.8x | 1.3x |
| Sat, 03 Sep 2022 | HK$11.4t | HK$8.5t | HK$1.9t | 6.8x | 5.9x | 1.3x |
| Mon, 01 Aug 2022 | HK$11.7t | HK$8.7t | HK$2.0t | 7x | 5.8x | 1.3x |
| Wed, 29 Jun 2022 | HK$12.9t | HK$8.8t | HK$2.0t | 7.2x | 6.3x | 1.5x |
| Fri, 27 May 2022 | HK$12.2t | HK$8.6t | HK$2.0t | 6.4x | 6x | 1.4x |
| Sun, 24 Apr 2022 | HK$12.8t | HK$9.0t | HK$2.1t | 6.7x | 6.2x | 1.4x |
| Tue, 22 Mar 2022 | HK$12.7t | HK$9.1t | HK$2.1t | 5.8x | 6x | 1.4x |
| Thu, 17 Feb 2022 | HK$13.8t | HK$9.2t | HK$2.2t | 6.3x | 6.4x | 1.5x |
| Sat, 15 Jan 2022 | HK$13.3t | HK$9.1t | HK$2.1t | 6.1x | 6.3x | 1.5x |
| Mon, 13 Dec 2021 | HK$13.0t | HK$9.1t | HK$2.1t | 6.2x | 6.1x | 1.4x |
| Wed, 10 Nov 2021 | HK$12.9t | HK$9.0t | HK$2.1t | 6.5x | 6.1x | 1.4x |
| Fri, 08 Oct 2021 | HK$13.1t | HK$8.7t | HK$2.1t | 6.4x | 6.4x | 1.5x |
| Sun, 05 Sep 2021 | HK$13.3t | HK$8.7t | HK$2.0t | 7.3x | 6.5x | 1.5x |
| Tue, 03 Aug 2021 | HK$13.1t | HK$8.7t | HK$2.0t | 7.6x | 6.4x | 1.5x |
| Fri, 07 May 2021 | HK$14.5t | HK$8.4t | HK$1.9t | 8.3x | 7.4x | 1.7x |
| Mon, 08 Feb 2021 | HK$14.5t | HK$8.3t | HK$1.9t | 8.9x | 7.6x | 1.7x |
Price to Earnings Ratio
7.6x
Current Industry PE
- Investors are relatively neutral on the Hong Kong Financials industry at the moment, indicating that they anticipate long term growth rates to remain steady.
- The industry is trading close to its 3-year average PE ratio of 6.5x.
- The 3-year average PS ratio of 1.5x is higher than the industry's current PS ratio of 1.3x.
Past Earnings Growth
- Both revenue and earnings for companies in the Financials industry have remained mostly flat over the last three years.
- This means that sales and the cost of doing business have remained relatively consistent over this period and subsequently, so have profits.
Industry Trends
Which industries have driven the changes within the Hong Kong Financials sector?
| HK Market | -2.61% | |
| Financials | -2.09% | |
| Diversified Financial | 2.16% | |
| Mortgage Finance | 0% | |
| Mortgage REITs | 0% | |
| Consumer Finance | -0.14% | |
| Banks | -0.43% | |
| Insurance | -4.89% | |
| Capital Markets | -6.63% | |
Industry PE
- Investors are most optimistic about the Capital Markets industry which is trading above its 3-year average PE ratio of 23.2x.
- Analysts are expecting annual earnings growth of 23.0%, which is higher than its past year's earnings decline of 29.3% per year.
Forecasted Growth
- Analysts are most optimistic on the Consumer Finance industry, expecting annual earnings growth of 36% over the next 5 years.
- This is better than its past earnings growth rate of 6.2% per year.
- In contrast, the Banks industry is expected to see its earnings grow by 5.5% 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 | |
|---|---|---|---|---|---|
| 1658 Postal Savings Bank of China | HK$3.57 | 2.9% +HK$9.9b | -27.0% | PB0.4x | |
| 6881 China Galaxy Securities | HK$4.04 | -2.9% HK$2.1b | 1.0% | PE5.8x | |
| 9889 Dongguan Rural Commercial Bank | HK$7.18 | 3.5% +HK$1.7b | -0.1% | PB0.9x | |
| 412 Shandong Hi-Speed Holdings Group | HK$6.36 | 4.3% +HK$1.6b | 19.8% | PS6.3x | |
| 3328 Bank of Communications | HK$4.63 | 0.4% +HK$1.5b | 4.8% | PB0.3x |