Are Investors Undervaluing Arrail Group Limited (HKG:6639) By 28%?
Feb 01
Hong Kong (HSI) Healthcare Services Industry Analysis
UpdatedFeb 05, 2023
DataAggregated Company Financials
Companies58
- 7D0.4%
- 3M30.2%
- 1Y-44.4%
- YTD1.5%
Over the last 7 days, the Healthcare Services industry has remained flat, although notably New Horizon Health gained 15%. As for the longer term, the industry has declined 44% in the last year. Looking forward, earnings are forecast to grow by 25% annually.
Industry Valuation and Performance
Has the Hong Kong Healthcare Services Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 05 Feb 2023 | HK$318.5b | HK$796.3b | HK$3.5b | 16.4x | 90x | 0.4x |
| Tue, 03 Jan 2023 | HK$296.9b | HK$778.5b | HK$3.2b | 14.3x | 93.3x | 0.4x |
| Thu, 01 Dec 2022 | HK$270.9b | HK$751.8b | HK$2.6b | 12.9x | 103.8x | 0.4x |
| Sat, 29 Oct 2022 | HK$188.3b | HK$671.8b | -HK$2,214,669,786.00 | 13.5x | -85x | 0.3x |
| Mon, 26 Sep 2022 | HK$199.3b | HK$666.3b | -HK$2,690,470,352.00 | 14.5x | -74.1x | 0.3x |
| Wed, 24 Aug 2022 | HK$216.1b | HK$683.2b | -HK$1,503,048,872.00 | 16.8x | -143.8x | 0.3x |
| Fri, 22 Jul 2022 | HK$237.3b | HK$690.2b | -HK$6,938,932,782.00 | 17.3x | -34.2x | 0.3x |
| Sun, 19 Jun 2022 | HK$211.9b | HK$692.4b | -HK$6,122,286,783.00 | 17.5x | -34.6x | 0.3x |
| Tue, 17 May 2022 | HK$193.6b | HK$674.8b | -HK$6,729,962,676.00 | 16.7x | -28.8x | 0.3x |
| Thu, 14 Apr 2022 | HK$196.8b | HK$717.5b | -HK$7,183,673,921.00 | 16.7x | -27.4x | 0.3x |
| Sat, 12 Mar 2022 | HK$229.3b | HK$722.7b | -HK$5,042,269,019.00 | 14.7x | -45.5x | 0.3x |
| Mon, 07 Feb 2022 | HK$244.7b | HK$714.9b | -HK$5,277,525,010.00 | 18.3x | -46.4x | 0.3x |
| Wed, 05 Jan 2022 | HK$254.1b | HK$713.9b | -HK$5,442,157,509.00 | 18.3x | -46.7x | 0.4x |
| Fri, 03 Dec 2021 | HK$256.1b | HK$711.7b | -HK$5,425,945,840.00 | 18.2x | -47.2x | 0.4x |
| Sun, 31 Oct 2021 | HK$291.2b | HK$706.8b | -HK$5,326,869,793.00 | 16.2x | -54.7x | 0.4x |
| Tue, 28 Sep 2021 | HK$296.5b | HK$690.4b | -HK$5,432,210,810.00 | 17.6x | -54.6x | 0.4x |
| Thu, 26 Aug 2021 | HK$336.7b | HK$689.6b | -HK$5,408,746,530.02 | 17.6x | -62.3x | 0.5x |
| Fri, 02 Jul 2021 | HK$693.3b | HK$688.4b | -HK$5,605,383,823.08 | 18x | -123.7x | 1x |
| Mon, 05 Apr 2021 | HK$886.4b | HK$647.2b | -HK$3,726,135,594.89 | 18.8x | -237.9x | 1.4x |
| Thu, 07 Jan 2021 | HK$295.5b | HK$596.6b | HK$7.7b | 23.4x | 38.2x | 0.5x |
| Wed, 30 Sep 2020 | HK$263.4b | HK$552.4b | HK$6.6b | 18.3x | 39.6x | 0.5x |
| Sat, 04 Jul 2020 | HK$286.9b | HK$514.1b | HK$5.7b | 20.8x | 50.7x | 0.6x |
| Tue, 07 Apr 2020 | HK$201.7b | HK$516.3b | HK$7.2b | 14.5x | 27.9x | 0.4x |
Price to Earnings Ratio
28.5x
Current Industry PE
- Investors are optimistic on the Hong Kong Healthcare industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 90.0x which is higher than its 3-year average PE of -21.1x.
- The industry is trading close to its 3-year average PS ratio of 0.53x.
Past Earnings Growth
- The earnings for companies in the Healthcare industry have declined 25% per year over the last three years.
- Meanwhile revenues for these companies have grown 15% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the Hong Kong Healthcare industry?
| HK Market | -3.43% | |
| Healthcare | -0.63% | |
| Healthcare Services | 0.43% | |
| Managed Healthcare | 23.29% | |
| Healthcare Services | 3.58% | |
| Healthcare Distributors | -0.021% | |
| Healthcare Facilities | -1.38% | |
Industry PE
- Investors are most optimistic about the Healthcare Services industry even though it's trading below its 3-year average PE ratio of 3kx.
- Analysts are expecting annual earnings growth of 51.8%, which is higher than its past year's earnings growth of 28.6% per year.
Forecasted Growth
- Analysts are most optimistic on the Healthcare Services industry, expecting annual earnings growth of 52% over the next 5 years.
- This is better than its past earnings growth rate of 29% per year.
- In contrast, the Healthcare Distributors industry is expected to see its earnings growth to stay flat 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 | |
|---|---|---|---|---|---|
| 6606 New Horizon Health | HK$37.10 | 14.7% +HK$3.1b | 51.4% | PS37.1x | |
| 2273 Gushengtang Holdings | HK$54.75 | 7.4% +HK$864.0m | 67.4% | PS7.4x | |
| 6639 Arrail Group | HK$10.74 | 9.4% +HK$535.1m | n/a | PS3.5x | |
| 286 Aidigong Maternal & Child Health | HK$0.65 | 16.1% +HK$391.1m | 1.6% | PS4.4x | |
| 8037 China Biotech Services Holdings | HK$1.31 | 22.4% +HK$231.2m | 7.4% | PE5.8x |
