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Hong Kong (HSI) Real Estate Sector Analysis
UpdatedDec 07, 2021
DataAggregated Company Financials
Companies283
- 7D-2.0%
- 3M-12.8%
- 1Y-19.2%
- YTD-18.8%
Over the last 7 days, the Real Estate industry has dropped 2.3%, driven by pullbacks in Swire Properties and China Resources Land of 6.3% and 2.8%, respectively. Meanwhile, Greentown China Holdings actually outperformed within the industry, gaining 11% in the last week. However, the industry is down 20% over the past year.
Sector Valuation and Performance
Has the Hong Kong Real Estate Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Tue, 07 Dec 2021 | HK$4.2t | HK$5.9t | HK$605.0b | 6.8x |
| Thu, 04 Nov 2021 | HK$4.3t | HK$5.9t | HK$589.2b | 7.6x |
| Sat, 02 Oct 2021 | HK$4.5t | HK$5.9t | HK$586.0b | 7.7x |
| Mon, 30 Aug 2021 | HK$4.8t | HK$5.9t | HK$575.0b | 7.8x |
| Tue, 06 Jul 2021 | HK$5.5t | HK$5.9t | HK$575.6b | 8.3x |
| Fri, 09 Apr 2021 | HK$5.7t | HK$5.5t | HK$514.0b | 8x |
| Thu, 31 Dec 2020 | HK$5.1t | HK$5.3t | HK$428.9b | 8.7x |
| Sun, 04 Oct 2020 | HK$4.7t | HK$4.7t | HK$372.5b | 8.2x |
| Wed, 08 Jul 2020 | HK$4.6t | HK$4.4t | HK$359.7b | 9.8x |
| Tue, 31 Mar 2020 | HK$4.5t | HK$4.3t | HK$454.1b | 8.5x |
| Fri, 03 Jan 2020 | HK$5.3t | HK$4.3t | HK$582.1b | 8.3x |
| Mon, 07 Oct 2019 | HK$4.6t | HK$3.9t | HK$623.3b | 7.2x |
| Sun, 30 Jun 2019 | HK$5.2t | HK$3.8t | HK$668.7b | 7.3x |
| Wed, 03 Apr 2019 | HK$5.5t | HK$3.8t | HK$696.3b | 7.4x |
| Sat, 05 Jan 2019 | HK$4.6t | HK$3.6t | HK$711.9b | 6.3x |
PE Ratio
6.3x
Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 8.0x. It appears they believe that earnings will grow in-line with historical growth rates.
Past Earnings Growth: The earnings for companies in the Real Estate industry have declined 5.2% per year over the last three years, while revenues for these companies have grown 18% 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 Real Estate sector?
| Real Estate | -1.97% | |
| REITS | -2.07% | |
Industry PE: Investors are most optimistic about the REITS industry even though it's trading below its 3-year average PE ratio of 60.1x. However analysts are expecting annual earnings growth of 8.7%, which is lower than the prior year's growth of 1,400% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Real Estate industry, which is trading below its 3-year average of 7.8x.
Forecasted Growth: Analysts are most optimistic on the Real Estate industry, expecting annual earnings growth of 16% over the next 5 years. However this is lower than its past earnings growth rate of 23% per year. Meanwhile, the REITS industry is expected to see its earnings grow by 8.7% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | 7D | 1Y | Valuation | |
|---|---|---|---|---|
| 6098 Country Garden Services Holdings | 10.3%+HK$16.3b | 4.7% | PB5x | |
| 1918 Sunac China Holdings | 23.7%+HK$14.9b | -44.2% | PB0.5x | |
| 688 China Overseas Land & Investment | 6.1%+HK$12.0b | 7.1% | PB0.5x | |
| 2007 Country Garden Holdings | 7.0%+HK$11.1b | -27.2% | PB0.7x | |
| 960 Longfor Group Holdings | 4.3%+HK$9.7b | -8.1% | PB1.8x |
