Analysis Article • Sep 01
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- 7D-2.3%
- 3M-5.5%
- 1Y-4.5%
- YTD-6.8%
Over the last 7 days, the Chemicals industry has dropped 2.3%, driven by China XLX Fertiliser declining 7.2%. Meanwhile, China Boton Group actually outperformed within the industry, gaining 6.5% in the last week. The industry has fallen 4.5% in the last year. As for the next few years, earnings are expected to grow by 47% per annum.
Industry Valuation and Performance
Has the Hong Kong Chemicals Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 13 Sep 2026 | HK$161.6b | HK$342.2b | HK$7.5b | 9.7x | 21.6x | 0.5x |
| Tue, 11 Aug 2026 | HK$163.4b | HK$327.1b | HK$7.6b | 11.3x | 21.6x | 0.5x |
| Thu, 09 Jul 2026 | HK$174.6b | HK$324.8b | HK$7.3b | 11.4x | 24x | 0.5x |
| Sat, 06 Jun 2026 | HK$188.4b | HK$324.8b | HK$7.2b | 10.9x | 26.1x | 0.6x |
| Mon, 04 May 2026 | HK$180.1b | HK$321.6b | HK$7.4b | 11.6x | 24.3x | 0.6x |
| Wed, 01 Apr 2026 | HK$172.8b | HK$320.5b | HK$6.8b | 9.5x | 25.5x | 0.5x |
| Fri, 27 Feb 2026 | HK$188.5b | HK$330.3b | HK$10.9b | 10.1x | 17.3x | 0.6x |
| Sun, 25 Jan 2026 | HK$179.6b | HK$323.6b | HK$10.7b | 9.4x | 16.8x | 0.6x |
| Tue, 23 Dec 2025 | HK$163.6b | HK$319.7b | HK$10.5b | 8.7x | 15.5x | 0.5x |
| Thu, 20 Nov 2025 | HK$161.4b | HK$316.5b | HK$10.4b | 9.4x | 15.5x | 0.5x |
| Sat, 18 Oct 2025 | HK$156.1b | HK$318.5b | HK$10.4b | 9.2x | 15.1x | 0.5x |
| Mon, 15 Sep 2025 | HK$164.6b | HK$319.0b | HK$10.4b | 8.5x | 15.9x | 0.5x |
| Wed, 13 Aug 2025 | HK$159.6b | HK$328.2b | HK$8.9b | 10.1x | 18x | 0.5x |
| Fri, 11 Jul 2025 | HK$143.3b | HK$328.2b | HK$8.9b | 9.5x | 16.1x | 0.4x |
| Sun, 08 Jun 2025 | HK$135.3b | HK$326.9b | HK$8.7b | 9.6x | 15.6x | 0.4x |
| Tue, 06 May 2025 | HK$128.5b | HK$319.3b | HK$8.5b | 9.1x | 15.1x | 0.4x |
| Thu, 03 Apr 2025 | HK$136.3b | HK$322.5b | HK$8.7b | 9.2x | 15.7x | 0.4x |
| Sat, 01 Mar 2025 | HK$127.1b | HK$328.2b | HK$8.5b | 9.6x | 14.9x | 0.4x |
| Mon, 27 Jan 2025 | HK$126.0b | HK$330.0b | HK$8.6b | 10.1x | 14.7x | 0.4x |
| Wed, 25 Dec 2024 | HK$126.2b | HK$326.9b | HK$8.5b | 9.4x | 14.8x | 0.4x |
| Fri, 22 Nov 2024 | HK$126.2b | HK$329.4b | HK$8.3b | 9.3x | 15.3x | 0.4x |
| Sun, 20 Oct 2024 | HK$131.4b | HK$337.8b | HK$8.7b | 9.3x | 15.1x | 0.4x |
| Tue, 17 Sep 2024 | HK$113.4b | HK$338.9b | HK$8.7b | 8.3x | 13.1x | 0.3x |
| Thu, 15 Aug 2024 | HK$117.5b | HK$326.9b | HK$10.2b | 9.5x | 11.5x | 0.4x |
| Sat, 13 Jul 2024 | HK$126.1b | HK$322.7b | HK$10.0b | 10.3x | 12.7x | 0.4x |
| Mon, 10 Jun 2024 | HK$130.3b | HK$321.2b | HK$10.1b | 10.5x | 12.9x | 0.4x |
| Wed, 08 May 2024 | HK$131.9b | HK$322.7b | HK$10.1b | 10.2x | 13.1x | 0.4x |
| Fri, 05 Apr 2024 | HK$119.0b | HK$323.4b | HK$9.5b | 8.5x | 12.5x | 0.4x |
| Sun, 03 Mar 2024 | HK$117.1b | HK$315.6b | HK$10.9b | 5.8x | 10.8x | 0.4x |
| Tue, 30 Jan 2024 | HK$113.8b | HK$319.0b | HK$11.3b | 5.6x | 10.1x | 0.4x |
| Thu, 28 Dec 2023 | HK$114.3b | HK$320.4b | HK$11.3b | 5.3x | 10.1x | 0.4x |
| Sat, 25 Nov 2023 | HK$116.7b | HK$317.2b | HK$11.2b | 5.1x | 10.4x | 0.4x |
| Mon, 23 Oct 2023 | HK$113.2b | HK$297.7b | HK$9.0b | 5.2x | 12.5x | 0.4x |
| Wed, 20 Sep 2023 | HK$121.4b | HK$298.6b | HK$9.1b | 5.6x | 13.4x | 0.4x |
Price to Earnings Ratio
13.4x
Current Industry PE
- Investors are optimistic on the Hong Kong Chemicals industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 21.6x which is higher than its 3-year average PE of 15.6x.
- The industry is trading close to its 3-year average PS ratio of 0.44x.
Past Earnings Growth
- The earnings for companies in the Chemicals industry have declined 6.3% per year over the last three years.
- Meanwhile revenues for these companies have grown 4.6% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the Hong Kong Materials industry?
| HK Market | -2.92% | |
| Materials | -2.75% | |
| Chemicals | -2.35% | |
| Industrial Gases | 3.86% | |
| Diversified Chemicals | -0.75% | |
| Commodity Chemicals | -1.56% | |
| Specialty Chemicals | -2.71% | |
| Fertilizers and Agricultural Chemicals | -3.46% | |
Industry PE
- Investors are most optimistic about the Commodity Chemicals industry even though it's trading below its 3-year average PE ratio of 35.4x.
- Analysts are expecting annual earnings growth of 97.2%, which is higher than its past year's earnings decline of 1.4% per year.
Forecasted Growth
- Analysts are most optimistic on the Commodity Chemicals industry, expecting annual earnings growth of 97% over the next 5 years.
- This is better than its past earnings decline of 1.4% per year.
- In contrast, the Fertilizers and Agricultural Chemicals 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 | |
|---|---|---|---|---|---|
| 3318 China Boton Group | HK$3.13 | 6.5% +HK$201.6m | 64.7% | PS1.7x | |
| 2198 China Sanjiang Fine Chemicals | HK$4.17 | 2.0% +HK$94.4m | 109.5% | PE5.5x | |
| 1702 Dongguang Chemical | HK$1.80 | 7.1% +HK$74.5m | 46.3% | PE5.3x | |
| 746 Lee & Man Chemical | HK$4.48 | 1.7% +HK$61.9m | -17.0% | PE6.4x | |
| 1940 China Gas Industry Investment Holdings | HK$1.35 | 3.9% +HK$60.0m | 106.9% | PE7x |