Is It Too Late To Consider Buying Wharf Real Estate Investment Company Limited (HKG:1997)?
Jun 16
Hong Kong (HSI) Real Estate Industry Analysis
UpdatedJun 20, 2024
DataAggregated Company Financials
Companies253
- 7D0.3%
- 3M0.7%
- 1Y-25.5%
- YTD-6.9%
The Real Estate is pretty flat in the last 7 days, but China Resources Land has stood out, gaining 3.4%. As for the longer term, the industry has declined 25% in the last year. Looking forward, earnings are forecast to grow by 14% annually.
Industry Valuation and Performance
Has the Hong Kong Real Estate Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 20 Jun 2024 | HK$2.0t | HK$4.0t | -HK$67,785,398,703.93 | 7.1x | -29.4x | 0.5x |
| Sat, 18 May 2024 | HK$2.3t | HK$4.0t | -HK$68,167,819,340.30 | 7.8x | -34.1x | 0.6x |
| Mon, 15 Apr 2024 | HK$1.9t | HK$4.0t | -HK$77,125,370,875.36 | 6.7x | -24.4x | 0.5x |
| Wed, 13 Mar 2024 | HK$2.1t | HK$3.9t | -HK$155,596,638,114.71 | 5.8x | -13.2x | 0.5x |
| Fri, 09 Feb 2024 | HK$1.9t | HK$3.9t | -HK$173,933,646,422.03 | 5.9x | -11.2x | 0.5x |
| Sun, 07 Jan 2024 | HK$2.2t | HK$4.0t | -HK$181,163,093,970.00 | 6.8x | -11.9x | 0.5x |
| Tue, 05 Dec 2023 | HK$2.2t | HK$4.0t | -HK$181,347,978,952.00 | 7.1x | -11.9x | 0.5x |
| Thu, 02 Nov 2023 | HK$2.2t | HK$3.9t | -HK$172,521,025,979.00 | 7.3x | -12.8x | 0.6x |
| Sat, 30 Sep 2023 | HK$2.4t | HK$3.9t | -HK$172,010,653,236.00 | 7.7x | -13.9x | 0.6x |
| Mon, 28 Aug 2023 | HK$2.5t | HK$4.6t | -HK$36,113,035,307.00 | 6.9x | -69.7x | 0.5x |
| Wed, 26 Jul 2023 | HK$2.8t | HK$4.8t | HK$3.2b | 7.5x | 859.9x | 0.6x |
| Fri, 23 Jun 2023 | HK$2.8t | HK$4.8t | HK$2.8b | 7.1x | 990.9x | 0.6x |
| Sun, 21 May 2023 | HK$2.8t | HK$4.9t | HK$534.3m | 7.4x | 5310.4x | 0.6x |
| Tue, 18 Apr 2023 | HK$3.2t | HK$5.0t | HK$19.4b | 7.6x | 166.8x | 0.6x |
| Thu, 16 Mar 2023 | HK$3.1t | HK$5.5t | HK$316.4b | 5.9x | 9.8x | 0.6x |
| Sat, 11 Feb 2023 | HK$3.4t | HK$5.6t | HK$370.9b | 6.6x | 9.1x | 0.6x |
| Mon, 09 Jan 2023 | HK$3.5t | HK$5.5t | HK$369.0b | 6.7x | 9.4x | 0.6x |
| Wed, 07 Dec 2022 | HK$3.2t | HK$5.5t | HK$365.9b | 6.6x | 8.8x | 0.6x |
| Fri, 04 Nov 2022 | HK$2.5t | HK$5.4t | HK$357.5b | 5.3x | 6.9x | 0.5x |
| Sun, 02 Oct 2022 | HK$2.9t | HK$5.4t | HK$362.4b | 5.7x | 8x | 0.5x |
| Tue, 30 Aug 2022 | HK$3.2t | HK$5.8t | HK$465.7b | 5.9x | 6.8x | 0.5x |
| Thu, 28 Jul 2022 | HK$3.3t | HK$5.8t | HK$496.5b | 6.2x | 6.6x | 0.6x |
| Sat, 25 Jun 2022 | HK$3.5t | HK$5.8t | HK$505.9b | 6.5x | 7x | 0.6x |
| Mon, 23 May 2022 | HK$3.7t | HK$5.8t | HK$507.0b | 6.6x | 7.2x | 0.6x |
| Wed, 20 Apr 2022 | HK$3.9t | HK$6.1t | HK$525.9b | 6.8x | 7.5x | 0.6x |
| Fri, 18 Mar 2022 | HK$3.8t | HK$6.0t | HK$630.6b | 6x | 6x | 0.6x |
| Sun, 13 Feb 2022 | HK$4.3t | HK$5.9t | HK$602.8b | 6.8x | 7.2x | 0.7x |
| Tue, 11 Jan 2022 | HK$4.0t | HK$5.9t | HK$598.5b | 7x | 6.8x | 0.7x |
| Thu, 09 Dec 2021 | HK$4.1t | HK$5.9t | HK$597.7b | 6.8x | 6.8x | 0.7x |
| Sat, 06 Nov 2021 | HK$4.0t | HK$5.9t | HK$591.7b | 7.3x | 6.8x | 0.7x |
| Mon, 04 Oct 2021 | HK$4.3t | HK$5.9t | HK$586.1b | 7.4x | 7.3x | 0.7x |
| Wed, 01 Sep 2021 | HK$4.6t | HK$5.8t | HK$577.4b | 7.4x | 8x | 0.8x |
| Thu, 08 Jul 2021 | HK$5.3t | HK$5.8t | HK$578.0b | 7.8x | 9.1x | 0.9x |
Price to Earnings Ratio
9.1x
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 0.65x.
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 12% per year, which is driving profits down.
Industry Trends
Which industries have driven the changes within the Hong Kong Real Estate industry?
| HK Market | 2.73% | |
| Real Estate | 0.36% | |
| Real Estate | 0.32% | |
| Diversified Real Estate | 1.19% | |
| Real Estate Development | 0.28% | |
| Real Estate Operating Companies | -0.48% | |
| Real Estate Services | -0.76% | |
Industry PE
- Investors are most optimistic about the Real Estate Services industry even though it's trading below its 3-year average PE ratio of 42.6x.
- Analysts are expecting annual earnings growth of 16.3%, which is higher than its past year's earnings decline of 1.9% per year.
Forecasted Growth
- Analysts are most optimistic on the Real Estate Operating Companies industry, expecting annual earnings growth of 22% over the next 5 years.
- This is better than its past earnings growth rate of 3.0% per year.
- In contrast, the Real Estate Development industry is expected to see its earnings grow by 10% 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 | |
|---|---|---|---|---|---|
| 1109 China Resources Land | HK$27.25 | 1.5% +HK$2.9b | -18.5% | PE5.8x | |
| 101 Hang Lung Properties | HK$6.96 | -0.7% HK$1.3b | -45.3% | PE8.3x | |
| 683 Kerry Properties | HK$14.00 | 2.2% +HK$435.4m | -11.1% | PE6.3x | |
| 3380 Logan Group | HK$0.68 | 7.9% +HK$276.0m | -18.1% | PS0.07x | |
| 1329 Beijing Capital Grand | HK$0.52 | 23.8% +HK$265.3m | -33.3% | PS0.6x |
