Does This Valuation Of Sany Heavy Equipment International Holdings Company Limited (HKG:631) Imply Investors Are Overpaying?
Jun 24
Hong Kong (HSI) Machinery Industry Analysis
UpdatedJun 25, 2024
DataAggregated Company Financials
Companies46
- 7D-2.9%
- 3M-5.9%
- 1Y11.0%
- YTD12.5%
Over the last 7 days, the Machinery industry has dropped 2.9%, driven by a pullback from Techtronic Industries of 2.8%. Over the past 12 months, the industry was up 11%. As for the next few years, earnings are expected to grow by 17% per annum.
Industry Valuation and Performance
Has the Hong Kong Machinery Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Wed, 26 Jun 2024 | HK$647.7b | HK$621.0b | HK$37.2b | 9x | 17.4x | 1x |
| Fri, 24 May 2024 | HK$704.5b | HK$647.8b | HK$39.7b | 9.4x | 17.7x | 1.1x |
| Sun, 21 Apr 2024 | HK$686.4b | HK$646.0b | HK$39.1b | 8.3x | 17.6x | 1.1x |
| Tue, 19 Mar 2024 | HK$734.1b | HK$619.8b | HK$36.7b | 8.9x | 20x | 1.2x |
| Thu, 15 Feb 2024 | HK$590.2b | HK$616.2b | HK$36.7b | 8.7x | 16.1x | 1x |
| Sat, 13 Jan 2024 | HK$593.5b | HK$617.5b | HK$36.7b | 9.1x | 16.2x | 1x |
| Mon, 11 Dec 2023 | HK$534.5b | HK$615.6b | HK$37.8b | 9.2x | 14.1x | 0.9x |
| Wed, 08 Nov 2023 | HK$534.7b | HK$609.9b | HK$37.6b | 9.3x | 14.2x | 0.9x |
| Fri, 06 Oct 2023 | HK$538.0b | HK$595.4b | HK$35.1b | 9.5x | 15.3x | 0.9x |
| Sun, 03 Sep 2023 | HK$543.4b | HK$594.7b | HK$35.0b | 10.1x | 15.5x | 0.9x |
| Tue, 01 Aug 2023 | HK$598.3b | HK$572.6b | HK$32.4b | 9.9x | 18.5x | 1x |
| Thu, 29 Jun 2023 | HK$564.3b | HK$569.2b | HK$32.3b | 9.9x | 17.5x | 1x |
| Sat, 27 May 2023 | HK$540.0b | HK$580.5b | HK$32.9b | 11.1x | 16.4x | 0.9x |
| Mon, 24 Apr 2023 | HK$564.6b | HK$578.4b | HK$31.9b | 12.6x | 17.7x | 1x |
| Wed, 22 Mar 2023 | HK$576.5b | HK$549.0b | HK$29.9b | 13.7x | 19.3x | 1.1x |
| Fri, 17 Feb 2023 | HK$613.7b | HK$559.1b | HK$31.6b | 12x | 19.4x | 1.1x |
| Sun, 15 Jan 2023 | HK$596.2b | HK$565.7b | HK$31.9b | 11.7x | 18.7x | 1.1x |
| Tue, 13 Dec 2022 | HK$570.0b | HK$547.3b | HK$31.0b | 12.1x | 18.4x | 1x |
| Thu, 10 Nov 2022 | HK$434.7b | HK$518.5b | HK$28.1b | 10.4x | 15.5x | 0.8x |
| Sat, 08 Oct 2022 | HK$421.5b | HK$520.9b | HK$28.7b | 11.1x | 14.7x | 0.8x |
| Mon, 05 Sep 2022 | HK$494.9b | HK$542.7b | HK$29.4b | 12.1x | 16.8x | 0.9x |
| Wed, 03 Aug 2022 | HK$493.3b | HK$609.9b | HK$35.7b | 10.6x | 13.8x | 0.8x |
| Fri, 01 Jul 2022 | HK$511.2b | HK$614.3b | HK$36.0b | 11x | 14.2x | 0.8x |
| Sun, 29 May 2022 | HK$523.4b | HK$614.3b | HK$35.9b | 10.5x | 14.6x | 0.9x |
| Tue, 26 Apr 2022 | HK$534.9b | HK$700.5b | HK$42.0b | 10x | 12.7x | 0.8x |
| Thu, 24 Mar 2022 | HK$656.8b | HK$744.3b | HK$47.6b | 11x | 13.8x | 0.9x |
| Sat, 19 Feb 2022 | HK$680.4b | HK$733.9b | HK$46.6b | 11.3x | 14.6x | 0.9x |
| Mon, 17 Jan 2022 | HK$716.8b | HK$731.3b | HK$46.4b | 11.1x | 15.5x | 1x |
| Wed, 15 Dec 2021 | HK$772.6b | HK$731.8b | HK$46.5b | 10.9x | 16.6x | 1.1x |
| Fri, 12 Nov 2021 | HK$737.2b | HK$725.3b | HK$45.7b | 11.6x | 16.1x | 1x |
| Sun, 10 Oct 2021 | HK$735.4b | HK$737.1b | HK$46.4b | 10.7x | 15.8x | 1x |
| Tue, 07 Sep 2021 | HK$855.3b | HK$734.2b | HK$46.1b | 15.8x | 18.5x | 1.2x |
| Thu, 05 Aug 2021 | HK$781.6b | HK$734.3b | HK$46.1b | 15x | 16.9x | 1.1x |
Price to Earnings Ratio
15.5x
Current Industry PE
- Investors are relatively neutral on the Hong Kong Machinery 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 16.3x.
- The industry is trading close to its 3-year average PS ratio of 0.96x.
Past Earnings Growth
- The earnings for companies in the Machinery industry have declined 6.9% per year over the last three years,
- Revenues have also declined 5.4% per year.
- This means overall sales from these companies are declining and profits are subsequently falling as well.
Industry Trends
Which industries have driven the changes within the Hong Kong Industrials industry?
| HK Market | 0.97% | |
| Industrials | -0.65% | |
| Machinery | -2.93% | |
| Industrial Machinery | -2.65% | |
| Construction Machinery and Vehicles | -3.11% | |
| Agricultural Machinery | -5.46% | |
Industry PE
- Investors are most optimistic about the Industrial Machinery industry which is trading above its 3-year average PE ratio of 19.1x.
- Analysts are expecting annual earnings growth of 19.0%, which is higher than its past year's earnings decline of 12.7% per year.
- Investors are most pessimistic about the Agricultural Machinery industry, which is trading below its 3-year average of 18.6x.
Forecasted Growth
- Analysts are most optimistic on the Agricultural Machinery industry, expecting annual earnings growth of 21% over the next 5 years.
- However this is lower than its past earnings growth rate of 62% per year.
- In contrast, the Construction Machinery and Vehicles industry is expected to see its earnings grow by 15% 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 | |
|---|---|---|---|---|---|
| 317 CSSC Offshore & Marine Engineering (Group) | HK$15.88 | 4.3% +HK$932.9m | 39.5% | PE231.7x | |
| 9880 Ubtech Robotics | HK$158.80 | 1.0% +HK$627.2m | n/a | PS58.5x | |
| 3808 Sinotruk (Hong Kong) | HK$19.36 | 0.8% +HK$441.8m | 38.3% | PE9.3x | |
| 3899 CIMC Enric Holdings | HK$7.86 | 1.2% +HK$182.5m | 13.6% | PE13.3x | |
| 716 Singamas Container Holdings | HK$0.97 | 4.3% +HK$95.3m | 49.2% | PE15.2x |
