Are Investors Undervaluing Fufeng Group Limited (HKG:546) By 42%?
Jun 30
Hong Kong (HSI) Chemicals Industry Analysis
UpdatedJul 01, 2024
DataAggregated Company Financials
Companies40
- 7D-1.7%
- 3M8.1%
- 1Y0.5%
- YTD8.5%
Over the last 7 days, the Chemicals industry has dropped 1.7%, driven by Migao Group Holdings declining 14%. In contrast, Sinofert Holdings has gained 14%. As for the longer term, the industry's performance has been flat for the past year. As for the next few years, earnings are expected to grow by 45% 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 |
|---|---|---|---|---|---|---|
| Mon, 01 Jul 2024 | HK$126.2b | HK$322.1b | HK$9.9b | 9.2x | 12.7x | 0.4x |
| Wed, 29 May 2024 | HK$135.5b | HK$321.3b | HK$10.1b | 10.6x | 13.5x | 0.4x |
| Fri, 26 Apr 2024 | HK$124.4b | HK$321.7b | HK$10.1b | 10.2x | 12.4x | 0.4x |
| Sun, 24 Mar 2024 | HK$118.5b | HK$322.3b | HK$11.8b | 6.1x | 10x | 0.4x |
| Tue, 20 Feb 2024 | HK$112.8b | HK$315.3b | HK$10.8b | 5.8x | 10.4x | 0.4x |
| Thu, 18 Jan 2024 | HK$111.8b | HK$318.9b | HK$11.3b | 5.5x | 9.9x | 0.4x |
| Sat, 16 Dec 2023 | HK$114.1b | HK$319.6b | HK$11.3b | 5.1x | 10.1x | 0.4x |
| Mon, 13 Nov 2023 | HK$114.4b | HK$312.2b | HK$11.0b | 5.1x | 10.4x | 0.4x |
| Wed, 11 Oct 2023 | HK$117.4b | HK$298.2b | HK$9.0b | 5.4x | 13x | 0.4x |
| Fri, 08 Sep 2023 | HK$122.1b | HK$301.1b | HK$10.6b | 5.7x | 11.6x | 0.4x |
| Sun, 06 Aug 2023 | HK$131.7b | HK$310.6b | HK$12.3b | 5.3x | 10.7x | 0.4x |
| Tue, 04 Jul 2023 | HK$126.7b | HK$309.6b | HK$13.0b | 4.9x | 9.8x | 0.4x |
| Thu, 01 Jun 2023 | HK$131.5b | HK$315.2b | HK$13.2b | 5.2x | 10x | 0.4x |
| Sat, 29 Apr 2023 | HK$144.8b | HK$323.5b | HK$13.5b | 5.2x | 10.7x | 0.4x |
| Mon, 27 Mar 2023 | HK$145.7b | HK$327.0b | HK$13.4b | 5.3x | 10.9x | 0.4x |
| Wed, 22 Feb 2023 | HK$153.2b | HK$343.6b | HK$15.8b | 5.5x | 9.7x | 0.4x |
| Fri, 20 Jan 2023 | HK$154.7b | HK$347.3b | HK$15.9b | 5.2x | 9.7x | 0.4x |
| Sun, 18 Dec 2022 | HK$146.0b | HK$336.9b | HK$15.4b | 5.1x | 9.5x | 0.4x |
| Tue, 15 Nov 2022 | HK$138.7b | HK$333.2b | HK$15.2b | 5.4x | 9.1x | 0.4x |
| Thu, 13 Oct 2022 | HK$134.2b | HK$345.1b | HK$17.6b | 5x | 7.6x | 0.4x |
| Sat, 10 Sep 2022 | HK$145.0b | HK$353.2b | HK$18.1b | 5.3x | 8x | 0.4x |
| Mon, 08 Aug 2022 | HK$147.6b | HK$334.1b | HK$16.8b | 5.7x | 8.8x | 0.4x |
| Wed, 06 Jul 2022 | HK$162.2b | HK$336.8b | HK$16.9b | 5.8x | 9.6x | 0.5x |
| Fri, 03 Jun 2022 | HK$161.2b | HK$338.1b | HK$16.9b | 6x | 9.5x | 0.5x |
| Sun, 01 May 2022 | HK$161.6b | HK$341.0b | HK$17.1b | 6.4x | 9.5x | 0.5x |
| Tue, 29 Mar 2022 | HK$169.5b | HK$334.0b | HK$19.2b | 6.9x | 8.8x | 0.5x |
| Thu, 24 Feb 2022 | HK$178.1b | HK$298.1b | HK$18.5b | 7.5x | 9.6x | 0.6x |
| Sat, 22 Jan 2022 | HK$208.2b | HK$296.3b | HK$18.3b | 7.6x | 11.3x | 0.7x |
| Mon, 20 Dec 2021 | HK$212.9b | HK$295.3b | HK$18.3b | 7.3x | 11.6x | 0.7x |
| Wed, 17 Nov 2021 | HK$225.7b | HK$294.8b | HK$18.3b | 7x | 12.3x | 0.8x |
| Fri, 15 Oct 2021 | HK$216.6b | HK$285.7b | HK$18.5b | 7.9x | 11.7x | 0.8x |
| Sun, 12 Sep 2021 | HK$252.4b | HK$283.7b | HK$18.4b | 8.5x | 13.7x | 0.9x |
| Tue, 10 Aug 2021 | HK$227.8b | HK$284.8b | HK$18.5b | 9.1x | 12.3x | 0.8x |
Price to Earnings Ratio
10.8x
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 12.7x which is higher than its 3-year average PE of 10.5x.
- The industry is trading close to its 3-year average PS ratio of 0.49x.
Past Earnings Growth
- The earnings for companies in the Chemicals industry have declined 18% per year over the last three years.
- Meanwhile revenues for these companies have grown 4.3% 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 | -0.99% | |
| Materials | -1.60% | |
| Chemicals | -1.75% | |
| Fertilizers and Agricultural Chemicals | 0.50% | |
| Commodity Chemicals | -1.76% | |
| Specialty Chemicals | -2.90% | |
| Diversified Chemicals | -3.15% | |
| Industrial Gases | -8.42% | |
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 66.4%, which is higher than its past year's earnings decline of 53.6% per year.
- Investors are most pessimistic about the Industrial Gases industry, which is trading below its 3-year average of 18.4x.
Forecasted Growth
- Analysts are most optimistic on the Commodity Chemicals industry, expecting annual earnings growth of 66% over the next 5 years.
- This is better than its past earnings decline of 54% per year.
- In contrast, the Diversified Chemicals industry is expected to see its earnings grow by 5.4% 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 | |
|---|---|---|---|---|---|
| 297 Sinofert Holdings | HK$1.00 | 16.3% +HK$983.4m | 3.1% | PE10.4x | |
| 189 Dongyue Group | HK$8.49 | 2.0% +HK$294.6m | 42.2% | PE19.3x | |
| 1866 China XLX Fertiliser | HK$3.89 | 4.9% +HK$250.3m | 14.7% | PE4.2x | |
| 9933 GHW International | HK$1.80 | 11.8% +HK$190.0m | 252.9% | PE614.9x | |
| 3983 China BlueChemical | HK$2.22 | 1.8% +HK$184.4m | 24.7% | PE4x |
