Be Wary Of Zhuzhou CRRC Times Electric (HKG:3898) And Its Returns On Capital
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Hong Kong (HSI) Electrical Industry Analysis
UpdatedJan 19, 2022
DataAggregated Company Financials
Companies33
- 7D-0.5%
- 3M3.5%
- 1Y-4.4%
- YTD-10.9%
Over the last 7 days, the Electrical industry has remained flat, although notably Guodian Technology & Environment Group gained 49%. Unfortunately though, the industry is down 4.4% over the past 12 months.
Industry Valuation and Performance
Has the Hong Kong Electrical Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Thu, 20 Jan 2022 | HK$297.0b | HK$425.8b | HK$5.5b | 7.2x |
| Sat, 18 Dec 2021 | HK$321.9b | HK$425.1b | HK$5.5b | 6.4x |
| Mon, 15 Nov 2021 | HK$301.8b | HK$423.5b | HK$5.6b | 6.2x |
| Wed, 13 Oct 2021 | HK$251.4b | HK$415.7b | HK$6.0b | 7x |
| Fri, 10 Sep 2021 | HK$274.3b | HK$414.5b | HK$5.7b | 9.2x |
| Sun, 08 Aug 2021 | HK$225.3b | HK$416.3b | HK$5.6b | 9.4x |
| Sat, 01 May 2021 | HK$210.0b | HK$398.5b | HK$13.6b | 9.2x |
| Tue, 02 Feb 2021 | HK$227.2b | HK$369.8b | HK$12.2b | 12.1x |
| Fri, 06 Nov 2020 | HK$183.0b | HK$343.2b | HK$10.1b | 9.5x |
| Mon, 10 Aug 2020 | HK$187.9b | HK$310.3b | HK$8.0b | 13.8x |
| Sun, 03 May 2020 | HK$165.3b | HK$301.7b | HK$6.7b | 11.7x |
| Wed, 05 Feb 2020 | HK$168.9b | HK$313.9b | HK$6.7b | 10.3x |
| Sat, 09 Nov 2019 | HK$177.1b | HK$282.7b | HK$4.7b | 10.7x |
| Fri, 02 Aug 2019 | HK$207.2b | HK$285.8b | HK$1.4b | 13.5x |
| Mon, 06 May 2019 | HK$247.4b | HK$296.7b | HK$3.0b | 15.1x |
| Thu, 07 Feb 2019 | HK$250.8b | HK$287.4b | HK$4.4b | 17.2x |
PE Ratio
17.2x
Current Industry PE: Investors are more pessimistic on the industry, considering it's trading at a PE ratio of 7.2x which is lower than its 3-year average PE of 11.3x. It appears they believe that earnings will not grow as fast as they have historically.
Past Earnings Growth: The earnings for companies in the Electrical industry have grown 8.0% per year over the last three years, and revenues for these companies have grown 14% 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 Electrical industry?
| Electrical Components | 2.16% | |
| Heavy Electrical Equipment | -2.39% | |
Industry PE: Investors are most optimistic about the Heavy Electrical Equipment industry even though it's trading below its 3-year average PE ratio of 19.1x. However analysts expect its future annual earnings growth (33%) to be largely in line with prior year's earnings growth, so the market might believe analysts are underestimating its future growth since investors are willing to pay a bigger premium today. Meanwhile, investors are most pessimistic about the Electrical Components industry, which is trading below its 3-year average of 8.8x.
Forecasted Growth: Analysts are most optimistic on the Heavy Electrical Equipment industry, expecting annual earnings growth of 33% over the next 5 years. This is roughly in line with its past earnings growth rate. Meanwhile, the Electrical Components industry is expected to see its earnings grow by 17% 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 | |
|---|---|---|---|---|---|
| 1296 Guodian Technology & Environment Group | HK$0.73 | 49.0% +HK$1.5b | 244.3% | PS0.2x | |
| 3898 Zhuzhou CRRC Times Electric | HK$41.45 | 0.5% +HK$283.2m | -13.4% | PE21.9x | |
| 607 Fullshare Holdings | HK$0.12 | 11.1% +HK$236.3m | -27.7% | PS0.09x | |
| 8137 Honbridge Holdings | HK$0.34 | 6.3% +HK$194.7m | -44.3% | PE2.3x | |
| 1608 VPower Group International Holdings | HK$1.43 | 4.4% +HK$161.5m | -41.4% | PE8.5x |
