Is It Too Late To Consider Buying Orient Overseas (International) Limited (HKG:316)?
Orient Overseas (International) Limited ( HKG:316 ) received a lot of attention from a substantial price increase on...
Hong Kong (HSI) Industrials Sector Analysis
UpdatedDec 02, 2021
DataAggregated Company Financials
Companies463
- 7D-0.9%
- 3M-11.3%
- 1Y14.3%
- YTD6.4%
Over the last 7 days, the Industrials industry has remained flat, although notably COSCO SHIPPING Holdings gained 13%. As for the the longer term, the industry is up 14% over the past 12 months.
Sector Valuation and Performance
Has the Hong Kong Industrials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Thu, 02 Dec 2021 | HK$4.3t | HK$7.0t | HK$402.5b | 8.9x |
| Sat, 30 Oct 2021 | HK$4.4t | HK$6.8t | HK$373.8b | 9x |
| Mon, 27 Sep 2021 | HK$4.6t | HK$6.8t | HK$369.9b | 9.2x |
| Wed, 25 Aug 2021 | HK$4.6t | HK$6.8t | HK$366.5b | 9.8x |
| Thu, 01 Jul 2021 | HK$4.5t | HK$6.8t | HK$366.5b | 9.4x |
| Sun, 04 Apr 2021 | HK$4.0t | HK$6.2t | HK$309.1b | 10.3x |
| Wed, 06 Jan 2021 | HK$3.5t | HK$5.8t | HK$235.4b | 10.3x |
| Sat, 10 Oct 2020 | HK$3.1t | HK$5.5t | HK$228.9b | 10.1x |
| Fri, 03 Jul 2020 | HK$2.9t | HK$5.2t | HK$222.4b | 10.5x |
| Mon, 06 Apr 2020 | HK$2.8t | HK$5.2t | HK$267.8b | 10.7x |
| Thu, 09 Jan 2020 | HK$3.5t | HK$5.4t | HK$327.4b | 11.5x |
| Wed, 02 Oct 2019 | HK$3.2t | HK$5.2t | HK$318.9b | 11.2x |
| Sat, 06 Jul 2019 | HK$3.6t | HK$5.3t | HK$321.5b | 12.2x |
| Tue, 09 Apr 2019 | HK$4.0t | HK$5.2t | HK$321.9b | 13.5x |
| Mon, 31 Dec 2018 | HK$3.4t | HK$5.0t | HK$314.6b | 11.9x |
PE Ratio
11.6x
Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 10.9x. It appears they believe that earnings will grow in-line with historical growth rates.
Past Earnings Growth: The earnings for companies in the Industrials industry have grown 8.4% per year over the last three years, and revenues for these companies have grown 12% 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 Industrials sector?
| Marine and Shipping | 11.50% | |
| Professional Services | 3.62% | |
| Machinery | 1.81% | |
| Construction | 0.35% | |
| Electrical | -0.62% | |
| Commercial Services | -1.16% | |
| Infrastructure | -1.99% | |
| Transportation | -3.49% | |
| Industrials | -3.69% | |
| Aerospace & Defense | -3.74% | |
| Trade Distributors | -5.02% | |
| Building | -5.06% | |
| Logistics | -7.10% | |
| Airlines | -9.85% | |
Industry PE: Investors are most optimistic about the Professional Services industry even though it's trading below its 3-year average PE ratio of 59.2x. This is likely because analysts are expecting annual earnings growth of 19%, which is higher than its past year's earnings decline of 18% per year. Meanwhile, investors are most pessimistic about the Infrastructure industry, which is trading below its 3-year average of 9.1x.
Forecasted Growth: Analysts are most optimistic on the Airlines industry, expecting annual earnings growth of 107% over the next 5 years. Meanwhile, the Marine and Shipping industry is expected to see its earnings decline by 34% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | 7D | 1Y | Valuation | |
|---|---|---|---|---|
| 1919 COSCO SHIPPING Holdings | 12.5%+HK$23.4b | 134.9% | PE2.3x | |
| 3996 China Energy Engineering | 23.7%+HK$9.2b | 40.2% | PE6.6x | |
| 316 Orient Overseas (International) | 10.1%+HK$9.0b | 147.8% | PE3.5x | |
| 1308 SITC International Holdings | 12.2%+HK$8.7b | 93.5% | PE14.4x | |
| 2338 Weichai Power | 4.9%+HK$6.1b | -8.2% | PE10.7x |
