Is It Too Late To Consider Buying Wharf Real Estate Investment Company Limited (HKG:1997)?
Nov 20
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Hong Kong (HSI) Real Estate Sector Analysis
UpdatedNov 21, 2024
DataAggregated Company Financials
Companies253
- 7D-1.8%
- 3M12.3%
- 1Y-10.8%
- YTD-6.2%
Over the last 7 days, the Real Estate industry has dropped 3.0%, driven by a pullback from China Resources Land of 4.8%. In contrast, Radiance Holdings (Group) has gained 19%. However, the industry is down 11% over the past year. Looking forward, earnings are forecast to grow by 23% 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 |
|---|---|---|---|---|---|---|
| Thu, 21 Nov 2024 | HK$2.1t | HK$3.1t | -HK$96,838,607,972.27 | 7.7x | -21.5x | 0.7x |
| Sat, 19 Oct 2024 | HK$2.2t | HK$3.2t | -HK$95,831,660,469.70 | 8.1x | -23x | 0.7x |
| Mon, 16 Sep 2024 | HK$1.8t | HK$3.2t | -HK$79,308,740,959.85 | 6.9x | -23x | 0.6x |
| Wed, 14 Aug 2024 | HK$1.9t | HK$3.4t | -HK$58,672,112,156.67 | 7x | -31.9x | 0.6x |
| Fri, 12 Jul 2024 | HK$2.0t | HK$3.4t | -HK$19,565,880,271.82 | 7x | -104x | 0.6x |
| Sun, 09 Jun 2024 | HK$2.2t | HK$4.0t | -HK$70,060,386,069.83 | 7.5x | -31.3x | 0.5x |
| Tue, 07 May 2024 | HK$2.2t | HK$4.1t | -HK$79,575,108,890.66 | 7.5x | -28.3x | 0.6x |
| Thu, 04 Apr 2024 | HK$2.1t | HK$4.1t | -HK$78,868,431,603.84 | 7.2x | -26.1x | 0.5x |
| Sat, 02 Mar 2024 | HK$2.1t | HK$3.9t | -HK$167,438,435,792.53 | 6.3x | -12.8x | 0.6x |
| Mon, 29 Jan 2024 | HK$2.2t | HK$4.0t | -HK$183,457,317,080.00 | 6.4x | -11.8x | 0.5x |
| Wed, 27 Dec 2023 | HK$2.3t | HK$4.0t | -HK$183,754,594,620.00 | 6.8x | -12.7x | 0.6x |
| Fri, 24 Nov 2023 | HK$2.5t | HK$4.0t | -HK$179,928,118,651.00 | 7.5x | -13.9x | 0.6x |
| Sun, 22 Oct 2023 | HK$2.4t | HK$4.0t | -HK$156,978,664,727.00 | 6.8x | -15.2x | 0.6x |
| Tue, 19 Sep 2023 | HK$2.6t | HK$4.0t | -HK$136,436,835,059.00 | 7.4x | -19x | 0.6x |
| Thu, 17 Aug 2023 | HK$2.7t | HK$4.6t | -HK$26,504,076,604.00 | 7.2x | -102.5x | 0.6x |
| Sat, 15 Jul 2023 | HK$2.9t | HK$4.8t | HK$17.3b | 7.4x | 168.3x | 0.6x |
| Mon, 12 Jun 2023 | HK$3.0t | HK$4.9t | HK$16.3b | 7.5x | 186.8x | 0.6x |
| Wed, 10 May 2023 | HK$3.3t | HK$5.0t | HK$12.0b | 8x | 271x | 0.7x |
| Fri, 07 Apr 2023 | HK$3.3t | HK$5.3t | HK$156.3b | 7.3x | 21.3x | 0.6x |
| Sun, 05 Mar 2023 | HK$3.5t | HK$5.5t | HK$370.4b | 6.4x | 9.5x | 0.6x |
| Tue, 31 Jan 2023 | HK$3.7t | HK$5.6t | HK$388.8b | 6.7x | 9.6x | 0.7x |
| Thu, 29 Dec 2022 | HK$3.4t | HK$5.5t | HK$382.8b | 6.8x | 9x | 0.6x |
| Sat, 26 Nov 2022 | HK$3.2t | HK$5.4t | HK$373.9b | 6.3x | 8.6x | 0.6x |
| Mon, 24 Oct 2022 | HK$2.9t | HK$5.4t | HK$368.3b | 5.8x | 8x | 0.5x |
| Wed, 21 Sep 2022 | HK$3.4t | HK$5.5t | HK$373.0b | 6.2x | 9.1x | 0.6x |
| Fri, 19 Aug 2022 | HK$3.4t | HK$5.8t | HK$507.5b | 6x | 6.6x | 0.6x |
| Sun, 17 Jul 2022 | HK$3.5t | HK$5.8t | HK$506.6b | 6.4x | 6.9x | 0.6x |
| Tue, 14 Jun 2022 | HK$3.7t | HK$5.9t | HK$516.3b | 6.5x | 7.1x | 0.6x |
| Thu, 12 May 2022 | HK$3.7t | HK$5.8t | HK$519.3b | 6.8x | 7.2x | 0.6x |
| Sat, 09 Apr 2022 | HK$4.2t | HK$6.1t | HK$540.8b | 7.1x | 7.8x | 0.7x |
| Mon, 07 Mar 2022 | HK$4.1t | HK$6.0t | HK$637.2b | 6.5x | 6.4x | 0.7x |
| Wed, 02 Feb 2022 | HK$4.4t | HK$6.0t | HK$610.4b | 6.8x | 7.2x | 0.7x |
| Fri, 31 Dec 2021 | HK$4.1t | HK$5.9t | HK$606.1b | 6.8x | 6.7x | 0.7x |
| Sun, 28 Nov 2021 | HK$4.3t | HK$5.9t | HK$603.1b | 7.2x | 7.1x | 0.7x |
Price to Earnings Ratio
7.1x
Current Industry PE
- Investors are relatively neutral on the Hong Kong Real Estate industry at the moment, indicating that they anticipate long term growth rates to remain steady.
- The industry is trading close to its 3-year average PS ratio of 0.65x.
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 19% per year, which is driving profits down.
Industry Trends
Which industries have driven the changes within the Hong Kong Real Estate sector?
| HK Market | 0.42% | |
| Real Estate | -1.80% | |
| REITS | 1.32% | |
| Specialized REITs | 0% | |
| Residential REITs | 0% | |
| Industrial REITs | 0% | |
| Health Care REITs | 0% | |
| Office REITs | -0.40% | |
| Real Estate | -1.63% | |
| Hotel and Resort REITs | -3.77% | |
| Retail REITs | -5.64% | |
Industry PE
- Investors are most optimistic about the Industrial REITs industry which is trading above its 3-year average PE ratio of 10.5x.
- Analysts are expecting annual earnings growth of 54.4%, which is higher than its past year's earnings decline of 73.3% per year.
Forecasted Growth
- Analysts are most optimistic on the Retail REITs industry, expecting annual earnings growth of 61% over the next 5 years.
- In contrast, the Hotel and Resort REITs industry is expected to see its earnings decline by 68% 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 | |
|---|---|---|---|---|---|
| 1972 Swire Properties | HK$16.22 | 2.9% +HK$2.7b | 1.4% | PE42.7x | |
| 1113 CK Asset Holdings | HK$31.85 | 1.9% +HK$2.1b | -20.2% | PE7.1x | |
| 16 Sun Hung Kai Properties | HK$77.15 | 0.7% +HK$1.4b | -4.1% | PE11.7x | |
| 12 Henderson Land Development | HK$25.10 | 1.0% +HK$1.2b | 11.3% | PE18.8x | |
| 6098 Country Garden Services Holdings | HK$5.68 | 6.8% +HK$1.2b | -34.0% | PS0.4x |
