Capital Allocation Trends At Sinopec Shanghai Petrochemical (HKG:338) Aren't Ideal
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Hong Kong (HSI) Commodity Chemicals Industry Analysis
UpdatedAug 08, 2022
DataAggregated Company Financials
Companies13
- 7D-1.3%
- 3M-11.5%
- 1Y-25.4%
- YTD-29.7%
Over the last 7 days, the Commodity Chemicals industry has dropped 1.3%, driven by a pullback from Sinopec Shanghai Petrochemical of 3.9%. The industry has fallen 25% in the last year. Earnings are forecast to grow by 52% annually.
Industry Valuation and Performance
Has the Hong Kong Commodity Chemicals Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 08 Aug 2022 | HK$57.0b | HK$195.0b | HK$6.7b | 5.2x | 8.5x | 0.3x |
| Wed, 06 Jul 2022 | HK$57.9b | HK$196.5b | HK$6.7b | 5x | 8.7x | 0.3x |
| Fri, 03 Jun 2022 | HK$62.9b | HK$197.3b | HK$6.7b | 5.6x | 9.4x | 0.3x |
| Sun, 01 May 2022 | HK$62.7b | HK$198.9b | HK$6.7b | 5.7x | 9.3x | 0.3x |
| Tue, 29 Mar 2022 | HK$69.4b | HK$197.7b | HK$9.0b | 5.8x | 7.7x | 0.4x |
| Thu, 24 Feb 2022 | HK$77.6b | HK$174.0b | HK$10.9b | 6.1x | 7.1x | 0.4x |
| Sat, 22 Jan 2022 | HK$79.3b | HK$173.0b | HK$10.8b | 6.2x | 7.3x | 0.5x |
| Mon, 20 Dec 2021 | HK$79.8b | HK$172.4b | HK$10.8b | 5.7x | 7.4x | 0.5x |
| Wed, 17 Nov 2021 | HK$80.1b | HK$172.1b | HK$10.8b | 5.7x | 7.4x | 0.5x |
| Fri, 15 Oct 2021 | HK$80.7b | HK$164.1b | HK$11.2b | 5.8x | 7.2x | 0.5x |
| Sun, 12 Sep 2021 | HK$86.9b | HK$162.9b | HK$11.0b | 7.6x | 7.9x | 0.5x |
| Tue, 10 Aug 2021 | HK$72.2b | HK$162.7b | HK$11.0b | 6.4x | 6.5x | 0.4x |
| Mon, 03 May 2021 | HK$73.3b | HK$153.0b | HK$9.1b | 7.4x | 8.1x | 0.5x |
| Thu, 04 Feb 2021 | HK$63.0b | HK$141.1b | HK$5.1b | 6.1x | 12.3x | 0.4x |
| Sun, 08 Nov 2020 | HK$51.6b | HK$140.5b | HK$3.5b | 6.2x | 14.9x | 0.4x |
| Sat, 01 Aug 2020 | HK$54.5b | HK$138.5b | HK$2.1b | 5.9x | 25.9x | 0.4x |
| Tue, 05 May 2020 | HK$58.6b | HK$150.3b | HK$3.5b | 7.5x | 16.7x | 0.4x |
| Fri, 07 Feb 2020 | HK$57.8b | HK$163.2b | HK$5.8b | 7x | 9.9x | 0.4x |
| Thu, 31 Oct 2019 | HK$60.5b | HK$163.6b | HK$6.0b | 6.3x | 10x | 0.4x |
Price to Earnings Ratio
8.6x
Current Industry PE
- Investors are pessimistic on the Hong Kong Commodity 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 8.6x which is lower than its 3-year average PE of 11.4x.
- The industry is trading close to its 3-year average PS ratio of 0.40x.
Past Earnings Growth
- The earnings for companies in the Commodity Chemicals industry have declined 2.7% per year over the last three years.
- Meanwhile revenues for these companies have grown 3.4% 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 Comparison
How does Hong Kong Commodity Chemicals compare with similar industries?
| HK Market | -0.75% | |
| Materials | -1.97% | |
| Chemicals | -2.03% | |
| Commodity Chemicals | -1.33% | |
| Industrial Gases | 0% | |
| Fertilizers and Agricultural Chemicals | -0.30% | |
| Specialty Chemicals | -3.31% | |
| Diversified Chemicals | -3.83% | |
Industry PEThere is insufficient data on the sub-industries of this industry.
Forecasted GrowthThere is insufficient data on the sub-industries of this industry.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| 1907 China Risun Group | HK$3.18 | 3.9% +HK$531.1m | -35.9% | PE4.6x | |
| 746 Lee & Man Chemical | HK$7.09 | 3.2% +HK$181.5m | 20.2% | PE4.5x | |
| 2198 China Sanjiang Fine Chemicals | HK$1.45 | 3.6% +HK$59.5m | -52.8% | PE3.9x | |
| 408 Yip's Chemical Holdings | HK$4.24 | 1.0% +HK$22.7m | -16.9% | PE5.9x | |
| 2116 Jiangsu Innovative Ecological New Materials | HK$0.27 | 3.9% +HK$4.8m | -35.4% | PE9.4x |
