Returns On Capital Signal Tricky Times Ahead For Sinopharm Group (HKG:1099)
Nov 29
Hong Kong (HSI) Healthcare Sector Analysis
UpdatedDec 03, 2023
DataAggregated Company Financials
Companies198
- 7D-0.7%
- 3M2.3%
- 1Y-12.3%
- YTD-20.0%
Last week, the Healthcare industry hasn't moved much but Hansoh Pharmaceutical Group is up 7.4% in that time. Unfortunately though, the industry is down 12% over the past 12 months. Earnings are forecast to grow by 25% annually.
Sector Valuation and Performance
Has the Hong Kong Healthcare Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 03 Dec 2023 | HK$1.7t | HK$1.4t | HK$26.4b | 12.7x | 64.3x | 1.2x |
| Tue, 31 Oct 2023 | HK$1.7t | HK$1.4t | HK$24.9b | 12.4x | 66.7x | 1.2x |
| Thu, 28 Sep 2023 | HK$1.6t | HK$1.4t | HK$24.6b | 12.6x | 65.6x | 1.2x |
| Sat, 26 Aug 2023 | HK$1.5t | HK$1.4t | HK$18.3b | 12.4x | 84.2x | 1.1x |
| Mon, 24 Jul 2023 | HK$1.7t | HK$1.4t | HK$2.5b | 13.9x | 667.3x | 1.2x |
| Wed, 21 Jun 2023 | HK$1.7t | HK$1.4t | HK$3.0b | 14.7x | 558.8x | 1.3x |
| Fri, 19 May 2023 | HK$1.8t | HK$1.4t | HK$3.3b | 14.8x | 549x | 1.3x |
| Sun, 16 Apr 2023 | HK$2.0t | HK$1.4t | HK$3.8b | 14x | 535.8x | 1.5x |
| Tue, 14 Mar 2023 | HK$1.9t | HK$1.3t | -HK$153,461,772.00 | 14.6x | -12243.5x | 1.4x |
| Thu, 09 Feb 2023 | HK$2.1t | HK$1.4t | HK$2.3b | 15.8x | 911x | 1.5x |
| Sat, 07 Jan 2023 | HK$2.0t | HK$1.3t | HK$2.1b | 15.5x | 952.7x | 1.5x |
| Mon, 05 Dec 2022 | HK$1.8t | HK$1.3t | HK$2.0b | 12.5x | 889.8x | 1.3x |
| Wed, 02 Nov 2022 | HK$1.6t | HK$1.3t | HK$1.2b | 12.5x | 1274x | 1.2x |
| Fri, 30 Sep 2022 | HK$1.4t | HK$1.3t | HK$3.3b | 13x | 439.5x | 1.1x |
| Sun, 28 Aug 2022 | HK$1.8t | HK$1.3t | HK$5.4b | 14x | 324x | 1.3x |
| Tue, 26 Jul 2022 | HK$1.9t | HK$1.3t | -HK$1,011,978,611.00 | 14.4x | -1854x | 1.4x |
| Thu, 23 Jun 2022 | HK$1.8t | HK$1.3t | -HK$2,991,456,820.00 | 14.3x | -603.3x | 1.4x |
| Sat, 21 May 2022 | HK$1.7t | HK$1.3t | -HK$2,936,170,992.00 | 14.1x | -567.8x | 1.3x |
| Mon, 18 Apr 2022 | HK$1.7t | HK$1.4t | -HK$2,280,141,563.00 | 13.6x | -759.1x | 1.3x |
| Wed, 16 Mar 2022 | HK$1.5t | HK$1.3t | HK$10.1b | 10.8x | 145.4x | 1.1x |
| Fri, 11 Feb 2022 | HK$2.0t | HK$1.3t | HK$7.9b | 14.6x | 250x | 1.5x |
| Sun, 09 Jan 2022 | HK$2.2t | HK$1.3t | HK$7.9b | 16.2x | 277.2x | 1.6x |
| Tue, 07 Dec 2021 | HK$2.3t | HK$1.3t | HK$8.0b | 14.6x | 292.7x | 1.8x |
| Thu, 04 Nov 2021 | HK$2.5t | HK$1.3t | HK$8.1b | 14.7x | 305.8x | 1.9x |
| Sat, 02 Oct 2021 | HK$2.8t | HK$1.3t | HK$7.8b | 15.6x | 352.5x | 2.1x |
| Mon, 30 Aug 2021 | HK$2.9t | HK$1.3t | HK$7.2b | 17.5x | 397.8x | 2.2x |
| Tue, 06 Jul 2021 | HK$3.9t | HK$1.3t | HK$7.4b | 18.9x | 525.1x | 3x |
| Fri, 09 Apr 2021 | HK$3.4t | HK$1.2t | HK$42.2m | 16.4x | 81074.8x | 2.8x |
| Thu, 31 Dec 2020 | HK$2.7t | HK$1.1t | HK$9.1b | 18.5x | 296.6x | 2.4x |
Price to Earnings Ratio
133.6x
Current Industry PE
- Investors are pessimistic on the Hong Kong Healthcare industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 64.3x which is lower than its 3-year average PE of 2kx.
- The 3-year average PS ratio of 1.7x is higher than the industry's current PS ratio of 1.2x.
Past Earnings Growth
- The earnings for companies in the Healthcare industry have grown 14% per year over the last three years.
- Revenues for these companies have grown 10% 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 Healthcare sector?
| HK Market | -2.96% | |
| Healthcare | -0.74% | |
| Pharma | 1.36% | |
| Healthtech | 0.29% | |
| Biotech | -0.38% | |
| Life Sciences | -1.61% | |
| Medical Equipment | -2.67% | |
| Healthcare Services | -2.90% | |
Industry PE
- Investors are most optimistic about the Life Sciences industry even though it's trading below its 3-year average PE ratio of 350x.
- Analysts are expecting annual earnings growth of 33.2%, which is higher than its past year's earnings decline of 10.6% per year.
Forecasted Growth
- Analysts are most optimistic on the Life Sciences industry, expecting annual earnings growth of 33% over the next 5 years.
- This is better than its past earnings decline of 11% per year.
- In contrast, the Pharma industry is expected to see its earnings grow by 12% 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 | |
|---|---|---|---|---|---|
| 3692 Hansoh Pharmaceutical Group | HK$15.88 | 7.4% +HK$6.5b | 7.2% | PE33.4x | |
| 2268 WuXi XDC Cayman | HK$32.20 | 11.0% +HK$3.8b | n/a | PE147.7x | |
| 1093 CSPC Pharmaceutical Group | HK$7.16 | 3.0% +HK$2.5b | -21.2% | PE12.7x | |
| 867 China Medical System Holdings | HK$15.00 | 7.0% +HK$2.4b | 35.4% | PE9.9x | |
| 9885 YSB | HK$19.78 | 15.7% +HK$1.7b | n/a | PS0.7x |
