Be Wary Of China Sanjiang Fine Chemicals (HKG:2198) And Its Returns On Capital
Jan 09
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Hong Kong (HSI) Chemicals Industry Analysis
UpdatedJan 11, 2026
DataAggregated Company Financials
Companies38
- 7D2.8%
- 3M4.6%
- 1Y44.5%
- YTD2.8%
In the last week, the Chemicals industry is up 2.8%, with Sinopec Shanghai Petrochemical leading the way, up 8.7%. In the same time, Global New Material International Holdings was down 10%. In the last 12 months, the industry was up 44%. Looking forward, earnings are forecast to grow by 45% 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 |
|---|---|---|---|---|---|---|
| Sun, 11 Jan 2026 | HK$172.2b | HK$322.9b | HK$10.7b | 8.7x | 16.2x | 0.5x |
| Tue, 09 Dec 2025 | HK$166.6b | HK$318.3b | HK$10.5b | 8.9x | 15.9x | 0.5x |
| Thu, 06 Nov 2025 | HK$154.6b | HK$315.3b | HK$10.4b | 9.2x | 14.9x | 0.5x |
| Sat, 04 Oct 2025 | HK$160.2b | HK$319.2b | HK$10.4b | 8.8x | 15.4x | 0.5x |
| Mon, 01 Sep 2025 | HK$164.1b | HK$319.3b | HK$10.4b | 8.1x | 15.8x | 0.5x |
| Wed, 30 Jul 2025 | HK$155.4b | HK$328.2b | HK$8.9b | 9.7x | 17.5x | 0.5x |
| Fri, 27 Jun 2025 | HK$140.5b | HK$328.4b | HK$8.8b | 9.3x | 16x | 0.4x |
| Sun, 25 May 2025 | HK$131.9b | HK$326.5b | HK$8.7b | 9.5x | 15.2x | 0.4x |
| Tue, 22 Apr 2025 | HK$128.3b | HK$320.8b | HK$8.7b | 8.8x | 14.8x | 0.4x |
| Thu, 20 Mar 2025 | HK$136.6b | HK$329.0b | HK$8.2b | 9.3x | 16.6x | 0.4x |
| Sat, 15 Feb 2025 | HK$128.2b | HK$329.1b | HK$8.6b | 10x | 15x | 0.4x |
| Mon, 13 Jan 2025 | HK$123.2b | HK$326.2b | HK$8.5b | 9.2x | 14.5x | 0.4x |
| Wed, 11 Dec 2024 | HK$129.0b | HK$329.1b | HK$8.5b | 9.3x | 15.1x | 0.4x |
| Fri, 08 Nov 2024 | HK$130.5b | HK$332.5b | HK$8.3b | 9.7x | 15.7x | 0.4x |
| Sun, 06 Oct 2024 | HK$139.6b | HK$339.7b | HK$8.7b | 9.2x | 16x | 0.4x |
| Tue, 03 Sep 2024 | HK$117.9b | HK$338.2b | HK$8.6b | 9.7x | 13.8x | 0.3x |
| Thu, 01 Aug 2024 | HK$121.6b | HK$324.2b | HK$10.0b | 9.8x | 12.1x | 0.4x |
| Sat, 29 Jun 2024 | HK$126.2b | HK$322.3b | HK$10.0b | 9.2x | 12.7x | 0.4x |
| Mon, 27 May 2024 | HK$133.1b | HK$321.4b | HK$10.1b | 10.2x | 13.2x | 0.4x |
| Wed, 24 Apr 2024 | HK$120.6b | HK$323.1b | HK$10.1b | 9.2x | 11.9x | 0.4x |
| Fri, 22 Mar 2024 | HK$117.0b | HK$319.1b | HK$11.3b | 6.4x | 10.4x | 0.4x |
| Sun, 18 Feb 2024 | HK$112.1b | HK$315.5b | HK$10.9b | 5.7x | 10.3x | 0.4x |
| Tue, 16 Jan 2024 | HK$116.3b | HK$319.7b | HK$11.3b | 5.5x | 10.3x | 0.4x |
| Thu, 14 Dec 2023 | HK$112.8b | HK$316.9b | HK$11.2b | 5.2x | 10.1x | 0.4x |
| Sat, 11 Nov 2023 | HK$114.4b | HK$312.1b | HK$11.0b | 5.1x | 10.4x | 0.4x |
| Mon, 09 Oct 2023 | HK$118.2b | HK$298.5b | HK$9.1b | 5.4x | 13.1x | 0.4x |
| Wed, 06 Sep 2023 | HK$124.8b | HK$302.1b | HK$10.6b | 5.7x | 11.8x | 0.4x |
| Fri, 04 Aug 2023 | HK$130.9b | HK$310.3b | HK$12.3b | 5.2x | 10.7x | 0.4x |
| Sun, 02 Jul 2023 | HK$125.2b | HK$309.3b | HK$12.9b | 5x | 9.7x | 0.4x |
| Tue, 30 May 2023 | HK$135.1b | HK$316.0b | HK$13.3b | 5x | 10.2x | 0.4x |
| Thu, 27 Apr 2023 | HK$142.9b | HK$327.6b | HK$14.0b | 5.2x | 10.2x | 0.4x |
| Sat, 25 Mar 2023 | HK$145.9b | HK$338.5b | HK$14.0b | 5.4x | 10.4x | 0.4x |
| Mon, 20 Feb 2023 | HK$154.0b | HK$344.1b | HK$15.8b | 5.5x | 9.8x | 0.4x |
| Wed, 18 Jan 2023 | HK$153.3b | HK$347.7b | HK$16.0b | 5.2x | 9.6x | 0.4x |
Price to Earnings Ratio
9.6x
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 16.2x which is higher than its 3-year average PE of 13.0x.
- 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 13% per year over the last three years,
- Revenues have also declined 2.6% 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 Materials industry?
| HK Market | -0.094% | |
| Materials | 3.98% | |
| Chemicals | 2.82% | |
| Industrial Gases | 7.78% | |
| Commodity Chemicals | 5.48% | |
| Diversified Chemicals | 4.36% | |
| Specialty Chemicals | 1.55% | |
| Fertilizers and Agricultural Chemicals | 0.48% | |
Industry PE
- Investors are most optimistic about the Specialty Chemicals industry which is trading above its 3-year average PE ratio of 26.2x.
- Analysts are expecting annual earnings growth of 32.1%, which is higher than its past year's earnings growth of 15.9% per year.
- Investors are most pessimistic about the Diversified Chemicals industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 4.8x.
Forecasted Growth
- Analysts are most optimistic on the Commodity Chemicals industry, expecting annual earnings growth of 100% over the next 5 years.
- This is better than its past earnings growth rate of 23% per year.
- In contrast, the Diversified Chemicals industry is expected to see its earnings grow by 3.8% 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 | |
|---|---|---|---|---|---|
| 338 Sinopec Shanghai Petrochemical | HK$1.50 | 8.7% +HK$1.3b | 35.1% | PS0.2x | |
| 336 Huabao International Holdings | HK$4.40 | 9.7% +HK$1.3b | 115.7% | PS3.7x | |
| 546 Fufeng Group | HK$8.49 | 4.9% +HK$1.0b | 64.2% | PE6.2x | |
| 189 Dongyue Group | HK$11.36 | 4.6% +HK$866.4m | 40.9% | PE13.7x | |
| 2198 China Sanjiang Fine Chemicals | HK$3.58 | 14.4% +HK$534.2m | 122.4% | PE5.6x |
