With A 26% Price Drop For China Huirong Financial Holdings Limited (HKG:1290) You'll Still Get What You Pay For
Jan 28
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Hong Kong (HSI) Financials Sector Analysis
UpdatedJan 30, 2025
DataAggregated Company Financials
Companies196
- 7D3.7%
- 3M4.3%
- 1Y34.0%
- YTD4.1%
The Financials industry is up 3.7% in the last week, with Industrial and Commercial Bank of China up 6.2%. This means that the industry has gained 34% over the past year. Looking forward, earnings are forecast to grow by 4.5% 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 |
|---|---|---|---|---|---|---|
| Thu, 30 Jan 2025 | HK$13.4t | HK$6.5t | HK$1.9t | 9.2x | 7x | 2.1x |
| Sat, 28 Dec 2024 | HK$13.5t | HK$6.3t | HK$1.9t | 9.3x | 7.2x | 2.1x |
| Mon, 25 Nov 2024 | HK$12.6t | HK$6.4t | HK$1.9t | 9.8x | 6.6x | 2x |
| Wed, 23 Oct 2024 | HK$13.2t | HK$6.4t | HK$1.8t | 10.7x | 7.3x | 2.1x |
| Fri, 20 Sep 2024 | HK$11.7t | HK$6.4t | HK$1.8t | 8.5x | 6.4x | 1.8x |
| Sun, 18 Aug 2024 | HK$11.9t | HK$6.3t | HK$1.8t | 8.2x | 6.7x | 1.9x |
| Tue, 16 Jul 2024 | HK$11.9t | HK$6.2t | HK$1.8t | 7.7x | 6.7x | 1.9x |
| Thu, 13 Jun 2024 | HK$11.5t | HK$6.2t | HK$1.8t | 7.8x | 6.5x | 1.9x |
| Sat, 11 May 2024 | HK$11.9t | HK$6.3t | HK$1.8t | 8.1x | 6.7x | 1.9x |
| Mon, 08 Apr 2024 | HK$11.0t | HK$6.4t | HK$1.8t | 7.7x | 6.1x | 1.7x |
| Wed, 06 Mar 2024 | HK$11.2t | HK$7.0t | HK$1.8t | 7x | 6.3x | 1.6x |
| Fri, 02 Feb 2024 | HK$10.7t | HK$6.8t | HK$1.7t | 7.2x | 6.3x | 1.6x |
| Sun, 31 Dec 2023 | HK$11.4t | HK$8.7t | HK$1.9t | 7.1x | 6.1x | 1.3x |
| Tue, 28 Nov 2023 | HK$11.5t | HK$8.6t | HK$1.9t | 7.4x | 6.2x | 1.3x |
| Thu, 26 Oct 2023 | HK$11.3t | HK$8.5t | HK$1.8t | 7x | 6.2x | 1.3x |
| Sat, 23 Sep 2023 | HK$11.7t | HK$8.3t | HK$1.7t | 7.3x | 6.7x | 1.4x |
| Mon, 21 Aug 2023 | HK$11.5t | HK$8.3t | HK$1.8t | 8x | 6.2x | 1.4x |
| Wed, 19 Jul 2023 | HK$11.7t | HK$8.3t | HK$1.9t | 7.8x | 6.3x | 1.4x |
| Fri, 16 Jun 2023 | HK$12.6t | HK$8.4t | HK$1.9t | 7.9x | 6.8x | 1.5x |
| Sun, 14 May 2023 | HK$13.2t | HK$8.6t | HK$1.9t | 8x | 6.8x | 1.5x |
| Tue, 11 Apr 2023 | HK$12.2t | HK$8.6t | HK$1.9t | 7.3x | 6.4x | 1.4x |
| Thu, 09 Mar 2023 | HK$12.2t | HK$8.6t | HK$2.0t | 6.8x | 6.2x | 1.4x |
| Sat, 04 Feb 2023 | HK$12.4t | HK$8.8t | HK$2.0t | 7x | 6.1x | 1.4x |
| Mon, 02 Jan 2023 | HK$12.1t | HK$8.6t | HK$2.0t | 7.3x | 6.2x | 1.4x |
| Wed, 30 Nov 2022 | HK$11.3t | HK$8.1t | HK$1.9t | 7x | 6x | 1.4x |
| Fri, 28 Oct 2022 | HK$10.2t | HK$8.2t | HK$1.9t | 6.2x | 5.5x | 1.3x |
| Sun, 25 Sep 2022 | HK$11.0t | HK$8.2t | HK$1.9t | 6.8x | 5.9x | 1.3x |
| Tue, 23 Aug 2022 | HK$11.4t | HK$8.6t | HK$2.0t | 6.6x | 5.7x | 1.3x |
| Thu, 21 Jul 2022 | HK$11.9t | HK$8.7t | HK$2.0t | 7.3x | 5.9x | 1.4x |
| Sat, 18 Jun 2022 | HK$12.5t | HK$8.8t | HK$2.0t | 7x | 6.2x | 1.4x |
| Mon, 16 May 2022 | HK$12.0t | HK$8.7t | HK$2.0t | 6.5x | 6x | 1.4x |
| Wed, 13 Apr 2022 | HK$13.1t | HK$9.1t | HK$2.1t | 6.9x | 6.2x | 1.4x |
| Fri, 11 Mar 2022 | HK$12.6t | HK$9.3t | HK$2.2t | 5.6x | 5.8x | 1.4x |
| Sun, 06 Feb 2022 | HK$13.4t | HK$9.2t | HK$2.1t | 6.3x | 6.3x | 1.5x |
Price to Earnings Ratio
6.3x
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 7.0x which is higher than its 3-year average PE of 6.3x.
- The 3-year average PS ratio of 1.6x 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 3.8% 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 | 1.94% | |
| Financials | 3.72% | |
| Banks | 3.97% | |
| Insurance | 3.57% | |
| Diversified Financial | 2.37% | |
| Capital Markets | 1.96% | |
| Consumer Finance | 1.39% | |
| Mortgage Finance | 0% | 0 |
| Mortgage REITs | 0% | 0 |
Industry PE
- Investors are most optimistic about the Consumer Finance industry which is trading above its 3-year average PE ratio of 27.2x.
- Analysts are expecting annual earnings growth of 41.9%, which is higher than its past year's earnings decline of 2.1% 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 42% 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 4.3% 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 | |
|---|---|---|---|---|---|
| 1398 Industrial and Commercial Bank of China | HK$5.29 | 6.2% +HK$110.5b | 38.5% | PB0.5x | |
| 939 China Construction Bank | HK$6.33 | 4.1% +HK$62.5b | 36.4% | PB0.5x | |
| 1288 Agricultural Bank of China | HK$4.28 | 3.1% +HK$45.5b | 41.7% | PB0.5x | |
| 3988 Bank of China | HK$4.02 | 3.3% +HK$38.3b | 36.7% | PB0.4x | |
| 3328 Bank of Communications | HK$6.29 | 4.7% +HK$20.8b | 36.1% | PB0.4x |
