Returns On Capital At Dongguang Chemical (HKG:1702) Paint A Concerning Picture
Feb 19
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Hong Kong (HSI) Chemicals Industry Analysis
UpdatedFeb 21, 2025
DataAggregated Company Financials
Companies39
- 7D0.4%
- 3M4.4%
- 1Y8.9%
- YTD0.07%
Over the last 7 days, the Chemicals industry has remained flat, although notably Fufeng Group gained 3.7%. The past year has been better, since the industry has gained 11% in that time. Earnings are forecast to grow by 50% 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 |
|---|---|---|---|---|---|---|
| Fri, 21 Feb 2025 | HK$128.0b | HK$328.9b | HK$8.6b | 9.8x | 15x | 0.4x |
| Sun, 19 Jan 2025 | HK$125.3b | HK$326.5b | HK$8.5b | 9.5x | 14.8x | 0.4x |
| Tue, 17 Dec 2024 | HK$127.7b | HK$327.8b | HK$8.5b | 9.4x | 15x | 0.4x |
| Thu, 14 Nov 2024 | HK$126.1b | HK$330.6b | HK$8.3b | 9.7x | 15.2x | 0.4x |
| Sat, 12 Oct 2024 | HK$134.9b | HK$339.2b | HK$8.7b | 9.2x | 15.5x | 0.4x |
| Mon, 09 Sep 2024 | HK$116.3b | HK$339.3b | HK$8.7b | 8.7x | 13.4x | 0.3x |
| Wed, 07 Aug 2024 | HK$118.0b | HK$327.0b | HK$10.2b | 9.6x | 11.5x | 0.4x |
| Fri, 05 Jul 2024 | HK$126.3b | HK$322.0b | HK$9.9b | 9.7x | 12.7x | 0.4x |
| Sun, 02 Jun 2024 | HK$132.6b | HK$321.8b | HK$10.1b | 10.3x | 13.1x | 0.4x |
| Tue, 30 Apr 2024 | HK$126.5b | HK$321.9b | HK$10.0b | 10.1x | 12.6x | 0.4x |
| Thu, 28 Mar 2024 | HK$116.7b | HK$319.4b | HK$9.6b | 8x | 12.2x | 0.4x |
| Sat, 24 Feb 2024 | HK$115.7b | HK$315.4b | HK$10.8b | 5.9x | 10.7x | 0.4x |
| Mon, 22 Jan 2024 | HK$111.2b | HK$320.3b | HK$11.3b | 5.6x | 9.8x | 0.3x |
| Wed, 20 Dec 2023 | HK$112.9b | HK$317.9b | HK$11.2b | 5.1x | 10.1x | 0.4x |
| Fri, 17 Nov 2023 | HK$116.1b | HK$313.2b | HK$11.1b | 5.1x | 10.5x | 0.4x |
| Sun, 15 Oct 2023 | HK$115.6b | HK$298.1b | HK$9.0b | 5.5x | 12.8x | 0.4x |
| Tue, 12 Sep 2023 | HK$122.0b | HK$302.0b | HK$10.6b | 5.6x | 11.5x | 0.4x |
| Thu, 10 Aug 2023 | HK$129.7b | HK$309.4b | HK$12.2b | 5.2x | 10.6x | 0.4x |
| Sat, 08 Jul 2023 | HK$126.4b | HK$310.4b | HK$13.0b | 5x | 9.7x | 0.4x |
| Mon, 05 Jun 2023 | HK$133.8b | HK$316.1b | HK$13.2b | 5.1x | 10.1x | 0.4x |
| Wed, 03 May 2023 | HK$141.5b | HK$323.7b | HK$13.6b | 5.2x | 10.4x | 0.4x |
| Fri, 31 Mar 2023 | HK$145.1b | HK$326.2b | HK$14.9b | 5x | 9.8x | 0.4x |
| Sun, 26 Feb 2023 | HK$149.6b | HK$340.3b | HK$15.6b | 5.3x | 9.6x | 0.4x |
| Tue, 24 Jan 2023 | HK$158.3b | HK$347.4b | HK$15.9b | 5.3x | 9.9x | 0.5x |
| Thu, 22 Dec 2022 | HK$143.6b | HK$337.1b | HK$15.4b | 5x | 9.3x | 0.4x |
| Sat, 19 Nov 2022 | HK$137.0b | HK$330.8b | HK$15.1b | 5.1x | 9.1x | 0.4x |
| Mon, 17 Oct 2022 | HK$136.7b | HK$344.3b | HK$17.6b | 5.1x | 7.8x | 0.4x |
| Wed, 14 Sep 2022 | HK$145.1b | HK$354.6b | HK$18.1b | 5.3x | 8x | 0.4x |
| Fri, 12 Aug 2022 | HK$150.0b | HK$336.5b | HK$17.1b | 5.8x | 8.8x | 0.4x |
| Sun, 10 Jul 2022 | HK$165.9b | HK$337.2b | HK$16.9b | 5.8x | 9.8x | 0.5x |
| Tue, 07 Jun 2022 | HK$164.0b | HK$338.6b | HK$17.0b | 5.8x | 9.7x | 0.5x |
| Thu, 05 May 2022 | HK$161.9b | HK$341.1b | HK$17.1b | 6.4x | 9.5x | 0.5x |
| Sat, 02 Apr 2022 | HK$170.9b | HK$346.9b | HK$19.2b | 6.6x | 8.9x | 0.5x |
| Mon, 28 Feb 2022 | HK$175.8b | HK$298.1b | HK$18.5b | 7.3x | 9.5x | 0.6x |
Price to Earnings Ratio
9.5x
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 15.0x which is higher than its 3-year average PE of 11.0x.
- The industry is trading close to its 3-year average PS ratio of 0.41x.
Past Earnings Growth
- The earnings for companies in the Chemicals industry have declined 23% per year over the last three years.
- Meanwhile revenues for these companies have grown 3.2% 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 | 3.24% | |
| Materials | -0.14% | |
| Chemicals | 0.36% | |
| Diversified Chemicals | 3.88% | |
| Specialty Chemicals | 2.59% | |
| Commodity Chemicals | 0.23% | |
| Fertilizers and Agricultural Chemicals | -3.20% | |
| Industrial Gases | -6.73% | |
Industry PE
- Investors are most optimistic about the Commodity Chemicals industry which is trading above its 3-year average PE ratio.
- Analysts are expecting annual earnings growth of 93.3%, which is higher than its past year's earnings growth of 24.5% per year.
- Investors are most pessimistic about the Industrial Gases industry, which is trading close to its 3-year average of 5.2x.
Forecasted Growth
- Analysts are most optimistic on the Commodity Chemicals industry, expecting annual earnings growth of 93% over the next 5 years.
- This is better than its past earnings growth rate of 24% per year.
- In contrast, the Diversified Chemicals industry is expected to see its earnings grow by 6.4% 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$5.63 | 3.7% +HK$501.3m | 20.3% | PE5x | |
| 6616 Global New Material International Holdings | HK$3.74 | 9.7% +HK$408.8m | -3.4% | PE21.2x | |
| 189 Dongyue Group | HK$8.23 | 2.2% +HK$311.9m | 19.4% | PE18.2x | |
| 1907 China Risun Group | HK$2.78 | 1.8% +HK$217.2m | -11.2% | PE43.9x | |
| 336 Huabao International Holdings | HK$2.07 | 2.5% +HK$161.5m | -6.3% | PE57.1x |
