China Lesso Group Holdings Limited (HKG:2128) Shares Could Be 34% Below Their Intrinsic Value Estimate
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of China Lesso Group...
Hong Kong (HSI) Building Industry Analysis
UpdatedMay 22, 2022
DataAggregated Company Financials
Companies11
- 7D6.4%
- 3M-16.2%
- 1Y-31.3%
- YTD-11.6%
The Building industry is up 6.4% in the last week, with Xinyi Glass Holdings up 6.8%. However, the industry is down 31% over the past year. Looking forward, earnings are forecast to grow by 10% annually.
Industry Valuation and Performance
Has the Hong Kong Building Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Sun, 22 May 2022 | HK$127.1b | HK$90.7b | HK$16.8b | 8.6x |
| Tue, 19 Apr 2022 | HK$123.8b | HK$93.1b | HK$17.0b | 7.8x |
| Thu, 17 Mar 2022 | HK$126.0b | HK$90.2b | HK$17.9b | 7.2x |
| Sat, 12 Feb 2022 | HK$161.6b | HK$84.7b | HK$16.8b | 8.7x |
| Mon, 10 Jan 2022 | HK$177.9b | HK$96.7b | HK$17.6b | 9x |
| Wed, 08 Dec 2021 | HK$144.1b | HK$84.5b | HK$16.7b | 8.3x |
| Fri, 05 Nov 2021 | HK$145.2b | HK$90.0b | HK$16.8b | 8x |
| Sun, 03 Oct 2021 | HK$156.6b | HK$89.2b | HK$16.7b | 9x |
| Tue, 31 Aug 2021 | HK$215.1b | HK$89.0b | HK$16.7b | 12.7x |
| Wed, 07 Jul 2021 | HK$206.6b | HK$89.0b | HK$16.7b | 9.7x |
| Sat, 10 Apr 2021 | HK$168.7b | HK$81.1b | HK$13.7b | 11x |
| Fri, 01 Jan 2021 | HK$141.0b | HK$73.7b | HK$10.7b | 11.1x |
| Mon, 05 Oct 2020 | HK$116.0b | HK$68.0b | HK$8.7b | 11.7x |
| Thu, 09 Jul 2020 | HK$79.0b | HK$63.5b | HK$7.0b | 10.7x |
| Wed, 01 Apr 2020 | HK$77.1b | HK$63.6b | HK$7.7b | 9.1x |
| Sat, 04 Jan 2020 | HK$84.3b | HK$64.6b | HK$8.4b | 9.2x |
| Tue, 08 Oct 2019 | HK$66.9b | HK$62.3b | HK$8.8b | 7.6x |
| Mon, 01 Jul 2019 | HK$62.7b | HK$62.2b | HK$9.3b | 7.5x |
Median PE Ratio
7.8x
Current Industry PE
- Investors are relatively neutral on the 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 9.6x.
Past Earnings Growth
- The earnings for companies in the Building industry have grown 22% per year over the last three years.
- Revenues for these companies have grown 13% 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 industry?
| HK Market | 3.37% | |
| Industrials | 3.92% | |
| Building | 6.37% | |
| Building Products | 6.37% | |
Industry PE
- Investors are most optimistic about the Building Products industry even though it's trading below its 3-year average PE ratio of 9.6x.
- Analysts are expecting annual earnings growth of 10%, which is lower than the prior year's growth of 72% per year. So the market might believe that analysts are underestimating future growth.
Forecasted Growth
- Analysts are most optimistic on the Building Products industry, expecting annual earnings growth of 10% over the next 5 years.
- However this is lower than its past earnings growth rate of 72% per year.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| 868 Xinyi Glass Holdings | HK$18.86 | 6.8% +HK$4.8b | -33.4% | PS6.5x | |
| 2128 China Lesso Group Holdings | HK$9.85 | 5.6% +HK$1.6b | -48.7% | PS8.6x | |
| 1108 Luoyang Glass | HK$10.46 | 9.3% +HK$574.7m | 83.8% | PS25.4x | |
| 3300 China Glass Holdings | HK$1.31 | 4.8% +HK$110.2m | 27.2% | PS2.8x | |
| 830 China State Construction Development Holdings | HK$2.36 | 1.7% +HK$86.2m | 120.6% | PS17.4x |
