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Hong Kong (HSI) Financials Sector Analysis
UpdatedNov 21, 2024
DataAggregated Company Financials
Companies196
- 7D0.6%
- 3M11.4%
- 1Y23.4%
- YTD26.4%
Over the last 7 days, the Financials industry has remained flat, although notably Agricultural Bank of China gained 3.1%. The past year has been better, since the industry has gained 23% in that time. Looking forward, earnings are forecast to grow by 5.0% 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, 21 Nov 2024 | HK$12.9t | HK$6.4t | HK$1.9t | 10.2x | 6.8x | 2x |
| Sat, 19 Oct 2024 | HK$13.4t | HK$6.4t | HK$1.8t | 10.8x | 7.4x | 2.1x |
| Mon, 16 Sep 2024 | HK$11.5t | HK$6.4t | HK$1.8t | 8.3x | 6.3x | 1.8x |
| Wed, 14 Aug 2024 | HK$11.7t | HK$6.3t | HK$1.8t | 8.2x | 6.5x | 1.9x |
| Fri, 12 Jul 2024 | HK$11.6t | HK$6.2t | HK$1.8t | 7.6x | 6.5x | 1.9x |
| Sun, 09 Jun 2024 | HK$11.7t | HK$6.2t | HK$1.8t | 7.9x | 6.6x | 1.9x |
| Tue, 07 May 2024 | HK$11.6t | HK$6.3t | HK$1.8t | 7.9x | 6.5x | 1.9x |
| Thu, 04 Apr 2024 | HK$11.1t | HK$6.4t | HK$1.8t | 7.7x | 6.1x | 1.7x |
| Sat, 02 Mar 2024 | HK$11.2t | HK$7.0t | HK$1.8t | 7.4x | 6.3x | 1.6x |
| Mon, 29 Jan 2024 | HK$10.7t | HK$6.8t | HK$1.7t | 7.2x | 6.3x | 1.6x |
| Wed, 27 Dec 2023 | HK$11.2t | HK$8.7t | HK$1.9t | 6.9x | 6x | 1.3x |
| Fri, 24 Nov 2023 | HK$11.6t | HK$8.7t | HK$1.9t | 7.5x | 6.2x | 1.3x |
| Sun, 22 Oct 2023 | HK$11.5t | HK$8.5t | HK$1.8t | 7x | 6.3x | 1.3x |
| Tue, 19 Sep 2023 | HK$11.5t | HK$8.5t | HK$1.8t | 7.3x | 6.3x | 1.4x |
| Thu, 17 Aug 2023 | HK$11.5t | HK$8.2t | HK$1.8t | 8.3x | 6.3x | 1.4x |
| Sat, 15 Jul 2023 | HK$12.1t | HK$8.4t | HK$1.9t | 7.8x | 6.5x | 1.4x |
| Mon, 12 Jun 2023 | HK$12.9t | HK$8.4t | HK$1.9t | 7.8x | 6.9x | 1.5x |
| Wed, 10 May 2023 | HK$13.9t | HK$8.7t | HK$1.9t | 8.3x | 7.1x | 1.6x |
| Fri, 07 Apr 2023 | HK$12.2t | HK$8.6t | HK$1.9t | 7.3x | 6.3x | 1.4x |
| Sun, 05 Mar 2023 | HK$12.4t | HK$8.6t | HK$2.0t | 6.9x | 6.3x | 1.4x |
| Tue, 31 Jan 2023 | HK$12.6t | HK$8.8t | HK$2.0t | 7.2x | 6.3x | 1.4x |
| Thu, 29 Dec 2022 | HK$12.0t | HK$8.5t | HK$1.9t | 7.1x | 6.2x | 1.4x |
| Sat, 26 Nov 2022 | HK$11.2t | HK$8.2t | HK$1.9t | 6.9x | 5.9x | 1.4x |
| Mon, 24 Oct 2022 | HK$10.5t | HK$8.1t | HK$1.8t | 6.4x | 5.7x | 1.3x |
| Wed, 21 Sep 2022 | HK$11.1t | HK$8.4t | HK$1.9t | 6.7x | 5.8x | 1.3x |
| Fri, 19 Aug 2022 | HK$11.4t | HK$8.7t | HK$2.0t | 6.5x | 5.7x | 1.3x |
| Sun, 17 Jul 2022 | HK$11.6t | HK$8.7t | HK$2.0t | 7x | 5.8x | 1.3x |
| Tue, 14 Jun 2022 | HK$12.2t | HK$8.8t | HK$2.0t | 6.8x | 6x | 1.4x |
| Thu, 12 May 2022 | HK$12.1t | HK$8.8t | HK$2.0t | 6.6x | 6x | 1.4x |
| Sat, 09 Apr 2022 | HK$13.3t | HK$9.1t | HK$2.1t | 7x | 6.3x | 1.5x |
| Mon, 07 Mar 2022 | HK$13.1t | HK$9.2t | HK$2.2t | 5.9x | 6.1x | 1.4x |
| Wed, 02 Feb 2022 | HK$13.2t | HK$9.2t | HK$2.1t | 6.3x | 6.2x | 1.4x |
| Fri, 31 Dec 2021 | HK$12.9t | HK$9.1t | HK$2.1t | 6x | 6.1x | 1.4x |
| Sun, 28 Nov 2021 | HK$12.8t | HK$9.1t | HK$2.1t | 6x | 6x | 1.4x |
Price to Earnings Ratio
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 6.3x.
- The 3-year average PS ratio of 1.5x is lower than the industry's current PS ratio of 2.0x.
Past Earnings Growth
- The earnings for companies in the Financials industry have declined 3.7% 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 | 0.42% | |
| Financials | 0.60% | |
| Banks | 1.69% | |
| Mortgage Finance | 0% | |
| Mortgage REITs | 0% | |
| Consumer Finance | -0.74% | |
| Diversified Financial | -0.79% | |
| Insurance | -1.64% | |
| Capital Markets | -3.04% | |
Industry PE
- Investors are most optimistic about the Consumer Finance industry which is trading above its 3-year average PE ratio of 25.1x.
- Analysts are expecting annual earnings growth of 40.8%, 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 4.8x.
Forecasted Growth
- Analysts are most optimistic on the Consumer Finance industry, expecting annual earnings growth of 41% 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 2.2% 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$3.95 | 3.1% +HK$42.0b | 35.7% | PB0.4x | |
| 1398 Industrial and Commercial Bank of China | HK$4.71 | 1.5% +HK$24.9b | 23.9% | PB0.4x | |
| 3988 Bank of China | HK$3.70 | 1.6% +HK$17.7b | 28.0% | PB0.4x | |
| 939 China Construction Bank | HK$5.99 | 1.0% +HK$15.0b | 30.5% | PB0.4x | |
| 1658 Postal Savings Bank of China | HK$4.57 | 2.0% +HK$8.9b | 25.9% | PB0.4x |