Is Now An Opportune Moment To Examine Midea Real Estate Holding Limited (HKG:3990)?
Jul 24
Hong Kong (HSI) Real Estate Sector Analysis
UpdatedJul 26, 2024
DataAggregated Company Financials
Companies258
- 7D-5.7%
- 3M-6.6%
- 1Y-32.2%
- YTD-14.2%
Over the last 7 days, the Real Estate industry has dropped 4.6%, driven by a pullback from China Resources Land of 9.1%. Overall the industry is down 32% in 12 months. Looking forward, earnings are forecast to grow by 14% annually.
Sector Valuation and Performance
Has the Hong Kong Real Estate Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 26 Jul 2024 | HK$2.0t | HK$3.5t | -HK$20,033,642,049.71 | 7.2x | -97.9x | 0.6x |
| Sun, 23 Jun 2024 | HK$2.1t | HK$4.0t | -HK$70,589,495,942.56 | 7.4x | -29.2x | 0.5x |
| Tue, 21 May 2024 | HK$2.5t | HK$4.0t | -HK$69,809,201,992.46 | 8.2x | -35.3x | 0.6x |
| Thu, 18 Apr 2024 | HK$2.0t | HK$4.1t | -HK$78,867,795,561.55 | 6.9x | -24.8x | 0.5x |
| Sat, 16 Mar 2024 | HK$2.1t | HK$3.9t | -HK$137,891,528,940.28 | 6.2x | -15.5x | 0.5x |
| Mon, 12 Feb 2024 | HK$2.1t | HK$3.9t | -HK$174,975,856,871.54 | 6.2x | -11.7x | 0.5x |
| Wed, 10 Jan 2024 | HK$2.3t | HK$4.0t | -HK$183,962,847,277.00 | 6.8x | -12.4x | 0.6x |
| Fri, 08 Dec 2023 | HK$2.3t | HK$4.0t | -HK$183,471,637,181.00 | 6.9x | -12.6x | 0.6x |
| Sun, 05 Nov 2023 | HK$2.4t | HK$4.0t | -HK$158,077,582,096.00 | 7.1x | -15.3x | 0.6x |
| Tue, 03 Oct 2023 | HK$2.5t | HK$4.0t | -HK$157,185,837,295.00 | 7.4x | -16.2x | 0.6x |
| Thu, 31 Aug 2023 | HK$2.7t | HK$4.0t | -HK$50,956,170,680.00 | 7.6x | -53.4x | 0.7x |
| Sat, 29 Jul 2023 | HK$3.1t | HK$4.8t | HK$17.8b | 7.8x | 172.6x | 0.6x |
| Mon, 26 Jun 2023 | HK$2.9t | HK$4.8t | HK$16.6b | 7.1x | 174.5x | 0.6x |
| Wed, 24 May 2023 | HK$3.0t | HK$4.9t | HK$14.3b | 7.4x | 210.4x | 0.6x |
| Fri, 21 Apr 2023 | HK$3.3t | HK$5.0t | HK$32.9b | 7.6x | 100.8x | 0.7x |
| Sun, 19 Mar 2023 | HK$150.4b | HK$1.2t | HK$87.7b | 2.2x | 1.7x | 0.1x |
| Tue, 14 Feb 2023 | HK$3.5t | HK$5.6t | HK$387.8b | 6.7x | 9.1x | 0.6x |
| Thu, 12 Jan 2023 | HK$3.6t | HK$5.6t | HK$387.9b | 6.7x | 9.3x | 0.6x |
| Sat, 10 Dec 2022 | HK$3.6t | HK$5.5t | HK$383.3b | 7.2x | 9.4x | 0.7x |
| Mon, 07 Nov 2022 | HK$2.7t | HK$5.4t | HK$368.8b | 5.7x | 7.3x | 0.5x |
| Wed, 05 Oct 2022 | HK$3.1t | HK$5.5t | HK$371.8b | 6.1x | 8.5x | 0.6x |
| Fri, 02 Sep 2022 | HK$3.3t | HK$5.6t | HK$396.0b | 6.5x | 8.5x | 0.6x |
| Sun, 31 Jul 2022 | HK$3.5t | HK$5.8t | HK$506.6b | 6.2x | 6.8x | 0.6x |
| Tue, 28 Jun 2022 | HK$3.8t | HK$5.9t | HK$515.7b | 6.7x | 7.4x | 0.7x |
| Thu, 26 May 2022 | HK$3.8t | HK$5.9t | HK$523.8b | 6.6x | 7.3x | 0.6x |
| Sat, 23 Apr 2022 | HK$4.0t | HK$6.1t | HK$535.7b | 6.9x | 7.4x | 0.7x |
| Mon, 21 Mar 2022 | HK$4.0t | HK$6.0t | HK$648.2b | 6.3x | 6.2x | 0.7x |
| Wed, 16 Feb 2022 | HK$4.4t | HK$6.0t | HK$610.9b | 6.9x | 7.2x | 0.7x |
| Fri, 14 Jan 2022 | HK$4.2t | HK$6.0t | HK$607.6b | 6.8x | 6.9x | 0.7x |
| Sun, 12 Dec 2021 | HK$4.3t | HK$5.9t | HK$605.8b | 7x | 7.1x | 0.7x |
| Tue, 09 Nov 2021 | HK$4.3t | HK$5.9t | HK$589.3b | 7.6x | 7.2x | 0.7x |
| Thu, 07 Oct 2021 | HK$4.5t | HK$5.9t | HK$583.7b | 7.7x | 7.6x | 0.8x |
| Sat, 04 Sep 2021 | HK$4.9t | HK$5.9t | HK$575.0b | 7.8x | 8.4x | 0.8x |
| Mon, 02 Aug 2021 | HK$4.9t | HK$5.9t | HK$575.0b | 7.7x | 8.5x | 0.8x |
Price to Earnings Ratio
8.5x
Current Industry PE
- Investors are pessimistic on the Hong Kong Real Estate industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading close to its 3-year average PS ratio of 0.67x.
Past Earnings Growth
- Total earnings for the Real Estate industry have declined over the last three years, with the industry now making a loss overall.
- Revenues have also declined 16% per year, which is driving profits down.
Industry Trends
Which industries have driven the changes within the Hong Kong Real Estate sector?
| HK Market | -3.89% | |
| Real Estate | -5.71% | |
| Industrial REITs | 0.37% | |
| Specialized REITs | 0% | |
| Residential REITs | 0% | |
| Health Care REITs | 0% | |
| Retail REITs | -1.02% | |
| Hotel and Resort REITs | -2.02% | |
| Office REITs | -2.26% | |
| REITS | -4.86% | |
| Real Estate | -5.97% | |
Industry PE
- Investors are most optimistic about the Office REITs industry which is trading above its 3-year average PE ratio of 14.7x.
- Analysts are expecting annual earnings growth of 29.4% and investors are willing to pay a premium for that growth.
Forecasted Growth
- Analysts are most optimistic on the Retail REITs industry, expecting annual earnings growth of 42% over the next 5 years.
- In contrast, the Hotel and Resort REITs industry is expected to see its earnings decline by 30% 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 | |
|---|---|---|---|---|---|
| 4 Wharf (Holdings) | HK$24.65 | 2.7% +HK$2.0b | 33.7% | PE79.7x | |
| 823 Link Real Estate Investment Trust | HK$32.50 | 1.1% +HK$893.8m | -26.3% | PB0.5x | |
| 247 Tsim Sha Tsui Properties | HK$18.42 | 2.3% +HK$890.9m | -15.5% | PE11.5x | |
| 3990 Midea Real Estate Holding | HK$6.94 | 5.0% +HK$473.7m | -2.8% | PE10.1x | |
| 9666 Jinke Smart Services Group | HK$7.18 | 10.6% +HK$373.7m | -42.2% | PS0.8x |
