Are Investors Undervaluing C&D International Investment Group Limited (HKG:1908) By 44%?
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Hong Kong (HSI) Real Estate Industry Analysis
UpdatedJan 19, 2022
DataAggregated Company Financials
Companies274
- 7D-3.1%
- 3M-10.7%
- 1Y-27.8%
- YTD2.5%
Over the last 7 days, the Real Estate industry has dropped 3.1%, driven by declines in Sunac China Holdings and Country Garden Holdings of 20% and 7.0%, respectively. However, the industry is down 28% over the past year.
Industry Valuation and Performance
Has the Hong Kong Real Estate Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Thu, 20 Jan 2022 | HK$3.9t | HK$5.9t | HK$600.2b | 6.6x |
| Sat, 18 Dec 2021 | HK$3.9t | HK$5.9t | HK$598.2b | 6.8x |
| Mon, 15 Nov 2021 | HK$4.3t | HK$5.9t | HK$593.7b | 7.5x |
| Wed, 13 Oct 2021 | HK$4.3t | HK$5.9t | HK$585.4b | 7.4x |
| Fri, 10 Sep 2021 | HK$4.5t | HK$5.8t | HK$581.6b | 7.6x |
| Sun, 08 Aug 2021 | HK$4.5t | HK$5.8t | HK$577.4b | 7.4x |
| Sat, 01 May 2021 | HK$5.4t | HK$5.5t | HK$522.9b | 7.9x |
| Tue, 02 Feb 2021 | HK$5.0t | HK$5.2t | HK$461.1b | 8.7x |
| Fri, 06 Nov 2020 | HK$4.3t | HK$4.7t | HK$423.6b | 8.2x |
| Mon, 10 Aug 2020 | HK$4.5t | HK$4.3t | HK$401.4b | 10.1x |
| Sun, 03 May 2020 | HK$4.5t | HK$4.3t | HK$477.7b | 8.4x |
| Wed, 05 Feb 2020 | HK$4.5t | HK$4.3t | HK$574.3b | 7.3x |
| Sat, 09 Nov 2019 | HK$4.5t | HK$3.9t | HK$591.9b | 7.1x |
| Fri, 02 Aug 2019 | HK$4.7t | HK$3.8t | HK$635.2b | 6.9x |
| Mon, 06 May 2019 | HK$5.1t | HK$3.8t | HK$655.5b | 7.5x |
| Thu, 07 Feb 2019 | HK$4.7t | HK$3.6t | HK$661.4b | 6.4x |
PE Ratio
6.4x
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 7.8x. 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 3.2% per year over the last three years, while revenues for these companies have grown 19% 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 industry?
| Real Estate Services | 2.29% | |
| Diversified Real Estate | -0.24% | |
| Real Estate Development | -3.33% | |
| Real Estate Operating Companies | -4.64% | |
Industry PE: Investors are most optimistic about the Real Estate Operating Companies industry even though it's trading below its 3-year average PE ratio of 17.8x. However analysts are expecting annual earnings growth of 23%, which is lower than the prior year's growth of 49% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Real Estate Development industry, which is trading below its 3-year average of 5.8x.
Forecasted Growth: Analysts are most optimistic on the Real Estate Services industry, expecting annual earnings growth of 34% over the next 5 years. This is better than it's past earnings growth rate of 7.9% per year. Meanwhile, the Real Estate Development industry is expected to see its earnings grow by 8.5% 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 | |
|---|---|---|---|---|---|
| 960 Longfor Group Holdings | HK$42.80 | 4.6% +HK$11.5b | -6.0% | PB1.9x | |
| 1109 China Resources Land | HK$38.00 | 4.1% +HK$10.7b | 8.0% | PB1.1x | |
| 688 China Overseas Land & Investment | HK$23.35 | 3.3% +HK$8.2b | 18.5% | PB0.6x | |
| 1113 CK Asset Holdings | HK$53.05 | 2.0% +HK$3.8b | 27.4% | PB0.5x | |
| 2669 China Overseas Property Holdings | HK$8.85 | 11.6% +HK$3.0b | 64.5% | PB11.9x |
