Analysis Article • Apr 23
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- 7D1.7%
- 3M-14.6%
- 1Y0.3%
- YTD-11.5%
Over the last 7 days, the Chemicals industry has dropped 1.6%, driven by a pullback from Dongyue Group of 6.9%. On the other hand Fufeng Group is actually up 6.9%. Over the last year, the industry has been flat overall. As for the next few years, earnings are expected to grow by 44% 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 |
|---|---|---|---|---|---|---|
| Tue, 21 Jul 2026 | HK$154.4b | HK$325.7b | HK$7.6b | 11x | 20.4x | 0.5x |
| Thu, 18 Jun 2026 | HK$194.0b | HK$325.4b | HK$7.2b | 11.4x | 26.8x | 0.6x |
| Sat, 16 May 2026 | HK$173.7b | HK$322.4b | HK$7.4b | 12x | 23.4x | 0.5x |
| Mon, 13 Apr 2026 | HK$179.1b | HK$323.5b | HK$6.8b | 11.3x | 26.3x | 0.6x |
| Wed, 11 Mar 2026 | HK$190.0b | HK$328.8b | HK$10.9b | 10.7x | 17.5x | 0.6x |
| Fri, 06 Feb 2026 | HK$183.4b | HK$325.3b | HK$10.7b | 9.7x | 17.1x | 0.6x |
| Sun, 04 Jan 2026 | HK$168.3b | HK$322.1b | HK$10.6b | 8.7x | 15.8x | 0.5x |
| Tue, 02 Dec 2025 | HK$164.8b | HK$318.5b | HK$10.5b | 9.7x | 15.7x | 0.5x |
| Thu, 30 Oct 2025 | HK$154.6b | HK$316.4b | HK$10.4b | 8.9x | 14.8x | 0.5x |
| Sat, 27 Sep 2025 | HK$156.0b | HK$318.4b | HK$10.4b | 8.1x | 15.1x | 0.5x |
| Mon, 25 Aug 2025 | HK$163.1b | HK$324.8b | HK$8.5b | 9x | 19.1x | 0.5x |
| Wed, 23 Jul 2025 | HK$154.3b | HK$328.2b | HK$8.9b | 9.8x | 17.3x | 0.5x |
| Fri, 20 Jun 2025 | HK$141.4b | HK$327.7b | HK$8.8b | 9.4x | 16.2x | 0.4x |
| Sun, 18 May 2025 | HK$132.1b | HK$324.6b | HK$8.6b | 9.1x | 15.3x | 0.4x |
| Tue, 15 Apr 2025 | HK$128.5b | HK$319.7b | HK$8.6b | 8.9x | 14.9x | 0.4x |
| Thu, 13 Mar 2025 | HK$134.3b | HK$329.4b | HK$8.5b | 9.7x | 15.8x | 0.4x |
| Sat, 08 Feb 2025 | HK$126.0b | HK$328.2b | HK$8.5b | 10x | 14.8x | 0.4x |
| Mon, 06 Jan 2025 | HK$125.6b | HK$326.4b | HK$8.5b | 9.4x | 14.8x | 0.4x |
| Wed, 04 Dec 2024 | HK$127.2b | HK$328.0b | HK$8.5b | 9.4x | 15x | 0.4x |
| Fri, 01 Nov 2024 | HK$126.2b | HK$334.4b | HK$8.4b | 9.2x | 15.1x | 0.4x |
| Sun, 29 Sep 2024 | HK$129.8b | HK$342.0b | HK$8.8b | 8.4x | 14.8x | 0.4x |
| Tue, 27 Aug 2024 | HK$117.4b | HK$327.5b | HK$10.1b | 9x | 11.6x | 0.4x |
| Thu, 25 Jul 2024 | HK$122.0b | HK$321.7b | HK$9.9b | 10.1x | 12.3x | 0.4x |
| Sat, 22 Jun 2024 | HK$127.9b | HK$323.1b | HK$10.1b | 9.7x | 12.6x | 0.4x |
| Mon, 20 May 2024 | HK$136.3b | HK$321.9b | HK$10.1b | 10.6x | 13.5x | 0.4x |
| Wed, 17 Apr 2024 | HK$119.6b | HK$323.4b | HK$10.1b | 8.3x | 11.8x | 0.4x |
| Fri, 15 Mar 2024 | HK$114.0b | HK$315.7b | HK$11.2b | 5.1x | 10.2x | 0.4x |
| Sun, 11 Feb 2024 | HK$110.5b | HK$317.0b | HK$10.9b | 5.8x | 10.1x | 0.3x |
| Tue, 09 Jan 2024 | HK$117.2b | HK$319.8b | HK$11.3b | 5.8x | 10.4x | 0.4x |
| Thu, 07 Dec 2023 | HK$114.8b | HK$317.6b | HK$11.2b | 5.1x | 10.2x | 0.4x |
| Sat, 04 Nov 2023 | HK$116.5b | HK$311.8b | HK$11.0b | 5.3x | 10.6x | 0.4x |
| Mon, 02 Oct 2023 | HK$120.7b | HK$298.4b | HK$9.0b | 5.7x | 13.4x | 0.4x |
| Wed, 30 Aug 2023 | HK$125.1b | HK$303.2b | HK$10.5b | 5.7x | 12x | 0.4x |
| Fri, 28 Jul 2023 | HK$131.7b | HK$312.5b | HK$13.1b | 5x | 10.1x | 0.4x |
Price to Earnings Ratio
10.1x
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 20.1x which is higher than its 3-year average PE of 15.1x.
- The industry is trading close to its 3-year average PS ratio of 0.43x.
Past Earnings Growth
- The earnings for companies in the Chemicals industry have declined 17% per year over the last three years.
- Meanwhile revenues have remained mostly flat.
- This means that although sales have remained flat, 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 | 3.06% | |
| Materials | 2.78% | |
| Chemicals | 1.67% | |
| Industrial Gases | 31.40% | |
| Diversified Chemicals | 5.96% | |
| Fertilizers and Agricultural Chemicals | 3.30% | |
| Commodity Chemicals | 2.79% | |
| Specialty Chemicals | -2.33% | |
Industry PE
- Investors are most optimistic about the Commodity Chemicals industry which is trading above its 3-year average PE ratio of 29.1x.
- Analysts are expecting annual earnings growth of 94.6%, which is higher than its past year's earnings growth of 12.2% per year.
Forecasted Growth
- Analysts are most optimistic on the Commodity Chemicals industry, expecting annual earnings growth of 95% over the next 5 years.
- This is better than its past earnings growth rate of 12% per year.
- In contrast, the Diversified Chemicals industry is expected to see its earnings grow by 9.5% 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$5.11 | 6.9% +HK$827.4m | -28.3% | PE4.5x | |
| 2198 China Sanjiang Fine Chemicals | HK$3.27 | 20.7% +HK$662.2m | 81.7% | PE8.2x | |
| 3983 China BlueChemical | HK$2.18 | 6.3% +HK$599.3m | 2.3% | PE8.9x | |
| 301 SANVO Fine Chemicals Group | HK$6.20 | 19.9% +HK$484.6m | 366.2% | PS2.4x | |
| 1866 China XLX Fertiliser | HK$8.65 | 3.6% +HK$435.2m | 42.7% | PE11.6x |