Returns At China Risun Group (HKG:1907) Are On The Way Up
Nov 28
Hong Kong (HSI) Chemicals Industry Analysis
UpdatedNov 28, 2022
DataAggregated Company Financials
Companies38
- 7D2.5%
- 3M-8.1%
- 1Y-43.9%
- YTD-36.2%
The Chemicals industry is up 2.5% in the last week, with Fufeng Group up 7.9%. Meanwhile, Huabao International Holdings actually underperformed within the industry, shrinking 7.4% in the last week. In contrast, the industry has lost 44% in the last 12 months. Looking forward, earnings are forecast to grow by 43% annually.
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 |
|---|---|---|---|---|---|---|
| Mon, 28 Nov 2022 | HK$139.6b | HK$329.8b | HK$15.1b | 5.1x | 9.3x | 0.4x |
| Wed, 26 Oct 2022 | HK$130.5b | HK$341.6b | HK$17.5b | 4.8x | 7.5x | 0.4x |
| Fri, 23 Sep 2022 | HK$142.3b | HK$350.6b | HK$17.9b | 5.2x | 8x | 0.4x |
| Sun, 21 Aug 2022 | HK$150.2b | HK$337.5b | HK$17.1b | 5.9x | 8.8x | 0.4x |
| Tue, 19 Jul 2022 | HK$155.5b | HK$334.4b | HK$16.7b | 6.4x | 9.3x | 0.5x |
| Thu, 16 Jun 2022 | HK$164.4b | HK$335.1b | HK$16.8b | 5.9x | 9.8x | 0.5x |
| Sat, 14 May 2022 | HK$156.6b | HK$333.1b | HK$16.7b | 6.4x | 9.4x | 0.5x |
| Mon, 11 Apr 2022 | HK$172.0b | HK$345.7b | HK$18.9b | 6.6x | 9.1x | 0.5x |
| Wed, 09 Mar 2022 | HK$170.3b | HK$299.4b | HK$18.8b | 6.7x | 9x | 0.6x |
| Fri, 04 Feb 2022 | HK$163.3b | HK$295.7b | HK$18.3b | 7.2x | 8.9x | 0.6x |
| Sun, 02 Jan 2022 | HK$215.5b | HK$296.2b | HK$18.3b | 7.5x | 11.7x | 0.7x |
| Tue, 30 Nov 2021 | HK$248.3b | HK$294.5b | HK$18.3b | 7.2x | 13.6x | 0.8x |
| Thu, 28 Oct 2021 | HK$227.1b | HK$287.4b | HK$18.6b | 7.8x | 12.2x | 0.8x |
| Sat, 25 Sep 2021 | HK$235.6b | HK$284.3b | HK$18.4b | 8.3x | 12.8x | 0.8x |
| Mon, 23 Aug 2021 | HK$231.5b | HK$284.8b | HK$18.5b | 8.5x | 12.5x | 0.8x |
| Sat, 10 Jul 2021 | HK$197.3b | HK$284.1b | HK$18.2b | 7.6x | 10.8x | 0.7x |
| Fri, 02 Apr 2021 | HK$152.0b | HK$267.3b | HK$14.7b | 8.3x | 10.4x | 0.6x |
| Mon, 04 Jan 2021 | HK$138.7b | HK$250.0b | HK$9.2b | 8.5x | 15x | 0.6x |
| Thu, 08 Oct 2020 | HK$109.1b | HK$244.9b | HK$7.9b | 8.2x | 13.7x | 0.4x |
| Wed, 01 Jul 2020 | HK$99.9b | HK$239.9b | HK$7.2b | 9.1x | 14x | 0.4x |
| Sat, 04 Apr 2020 | HK$103.4b | HK$253.8b | HK$9.9b | 8.2x | 10.4x | 0.4x |
| Tue, 07 Jan 2020 | HK$118.1b | HK$270.2b | HK$12.9b | 7.9x | 9.2x | 0.4x |
Price to Earnings Ratio
7.9x
Current Industry PE
- Investors are pessimistic on the Hong Kong Chemicals industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 9.3x which is lower than its 3-year average PE of 11.5x.
- The industry is trading close to its 3-year average PS ratio of 0.54x.
Past Earnings Growth
- The earnings for companies in the Chemicals industry have remained mostly flat over the last three years.
- Meanwhile revenues for these companies have grown 7.0% 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 and as a result, profits have held steady.
Industry Trends
Which industries have driven the changes within the Hong Kong Materials industry?
| HK Market | -0.24% | |
| Materials | 2.09% | |
| Chemicals | 2.49% | |
| Diversified Chemicals | 7.42% | |
| Fertilizers and Agricultural Chemicals | 6.07% | |
| Commodity Chemicals | 4.01% | |
| Specialty Chemicals | -1.71% | |
| Industrial Gases | -12.04% | |
Industry PE
- Investors are most optimistic about the Commodity Chemicals industry which is trading above its 3-year average PE ratio of 11.6x.
- Analysts are expecting annual earnings growth of 108.5%, which is higher than its past year's earnings decline of 23.9% per year.
- Investors are most pessimistic about the Diversified Chemicals industry, which is trading below its 3-year average of 6.9x.
Forecasted Growth
- Analysts are most optimistic on the Commodity Chemicals industry, expecting annual earnings growth of 108% over the next 5 years.
- This is better than its past earnings decline of 24% per year.
- In contrast, the Specialty Chemicals industry is expected to see its earnings grow by 2.7% 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 | |
|---|---|---|---|---|---|
| 546 Fufeng Group | HK$4.90 | 7.9% +HK$912.9m | 75.6% | PE4.2x | |
| 338 Sinopec Shanghai Petrochemical | HK$1.22 | 5.2% +HK$648.3m | -35.1% | PS0.1x | |
| 1866 China XLX Fertiliser | HK$3.95 | 11.3% +HK$561.6m | -17.9% | PE3.2x | |
| 3983 China BlueChemical | HK$1.83 | 7.0% +HK$553.2m | -20.1% | PE6.5x | |
| 1907 China Risun Group | HK$3.16 | 2.9% +HK$398.2m | -32.2% | PE4.9x |
