Be Wary Of Zhuzhou CRRC Times Electric (HKG:3898) And Its Returns On Capital
If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Amongst other...
Has the Hong Kong Electrical Industry valuation changed over the past few years?
|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|
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.
Which industries have driven the changes within the Hong Kong Electrical industry?
|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.
Which companies have driven the market over the last 7 days?
|1296 Guodian Technology & Environment Group||HK$0.73||49.0%|
|3898 Zhuzhou CRRC Times Electric||HK$41.45||0.5%|
|607 Fullshare Holdings||HK$0.12||11.1%|
|8137 Honbridge Holdings||HK$0.34||6.3%|
|1608 VPower Group International Holdings||HK$1.43||4.4%|
Time Interconnect Technology
Zhuzhou CRRC Times Electric
Sun.King Technology Group
Xinyi Electric Storage Holdings
Shanghai Electric Group
China High Speed Transmission Equipment Group
Guodian Technology & Environment Group
Century Energy International Holdings
VPower Group International Holdings
Xingye Alloy Materials Group
Northeast Electric Development