The Returns On Capital At China Railway Signal & Communication (HKG:3969) Don't Inspire Confidence
Nov 25
Hong Kong (HSI) Electronic Equipment and Components Industry Analysis
UpdatedNov 27, 2022
DataAggregated Company Financials
Companies76
- 7D-2.4%
- 3M-9.9%
- 1Y-43.8%
- YTD-46.3%
Over the last 7 days, the Electronic Equipment and Components industry has dropped 2.4%, driven by Sunny Optical Technology (Group) declining 6.0%. Meanwhile, China Railway Signal & Communication actually outperformed within the industry, gaining 5.1% in the last week. The industry has fallen 44% in the last year. Earnings are forecast to grow by 16% annually.
Industry Valuation and Performance
Has the Hong Kong Electronic Equipment and Components Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 28 Nov 2022 | HK$316.8b | HK$610.2b | HK$31.4b | 6.4x | 10.1x | 0.5x |
| Wed, 26 Oct 2022 | HK$277.4b | HK$609.6b | HK$31.4b | 5.6x | 8.8x | 0.5x |
| Fri, 23 Sep 2022 | HK$320.1b | HK$612.3b | HK$31.6b | 6.5x | 10.1x | 0.5x |
| Sun, 21 Aug 2022 | HK$361.6b | HK$615.4b | HK$37.3b | 6.8x | 9.7x | 0.6x |
| Tue, 19 Jul 2022 | HK$359.3b | HK$618.9b | HK$37.9b | 6.7x | 9.5x | 0.6x |
| Thu, 16 Jun 2022 | HK$372.4b | HK$611.5b | HK$37.7b | 6.8x | 9.9x | 0.6x |
| Sat, 14 May 2022 | HK$348.8b | HK$610.6b | HK$37.7b | 6.9x | 9.2x | 0.6x |
| Mon, 11 Apr 2022 | HK$388.9b | HK$617.8b | HK$38.7b | 7x | 10x | 0.6x |
| Wed, 09 Mar 2022 | HK$426.9b | HK$599.3b | HK$34.7b | 6.8x | 12.3x | 0.7x |
| Fri, 04 Feb 2022 | HK$506.4b | HK$601.5b | HK$34.7b | 7x | 14.6x | 0.8x |
| Sun, 02 Jan 2022 | HK$577.9b | HK$601.9b | HK$34.7b | 7.8x | 16.6x | 1x |
| Tue, 30 Nov 2021 | HK$564.8b | HK$600.2b | HK$34.5b | 7.9x | 16.4x | 0.9x |
| Thu, 28 Oct 2021 | HK$519.1b | HK$600.6b | HK$35.1b | 8.4x | 14.8x | 0.9x |
| Sat, 25 Sep 2021 | HK$536.8b | HK$599.3b | HK$34.9b | 8.7x | 15.4x | 0.9x |
| Mon, 23 Aug 2021 | HK$553.3b | HK$599.2b | HK$34.8b | 9.1x | 15.9x | 0.9x |
| Sat, 10 Jul 2021 | HK$629.1b | HK$599.2b | HK$34.8b | 9.6x | 18.1x | 1.1x |
| Fri, 02 Apr 2021 | HK$516.7b | HK$569.3b | HK$28.9b | 9.5x | 17.9x | 0.9x |
| Mon, 04 Jan 2021 | HK$477.3b | HK$537.0b | HK$22.4b | 10.6x | 21.3x | 0.9x |
| Thu, 08 Oct 2020 | HK$397.9b | HK$543.5b | HK$20.7b | 10.6x | 19.2x | 0.7x |
| Wed, 01 Jul 2020 | HK$393.9b | HK$526.6b | HK$18.5b | 14x | 21.3x | 0.7x |
| Sat, 04 Apr 2020 | HK$345.5b | HK$537.2b | HK$20.1b | 13.2x | 17.2x | 0.6x |
| Tue, 07 Jan 2020 | HK$464.1b | HK$552.8b | HK$22.0b | 12.1x | 21.1x | 0.8x |
Price to Earnings Ratio
21.7x
Current Industry PE
- Investors are pessimistic on the Hong Kong Electronic industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 10.1x which is lower than its 3-year average PE of 16.7x.
- The industry is trading close to its 3-year average PS ratio of 0.78x.
Past Earnings Growth
- The earnings for companies in the Electronic industry have grown 18% per year over the last three years.
- Revenues for these companies have grown 3.8% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the Hong Kong Tech industry?
| HK Market | -0.24% | |
| Tech | -4.26% | |
| Electronic Equipment and Components | -2.41% | |
| Electronic Equipment and Instruments | 3.18% | |
| Technology Distributors | -1.95% | |
| Electronic Components | -3.99% | |
| Electronic Manufacturing Services | -4.82% | |
Industry PE
- Investors are most optimistic about the Electronic Manufacturing Services industry even though it's trading below its 3-year average PE ratio of 71.5x.
- Analysts are expecting annual earnings growth of 29.1%, which is higher than its past year's earnings decline of 7.2% per year.
- Investors are most pessimistic about the Technology Distributors industry, which is trading below its 3-year average of 11.4x.
Forecasted Growth
- Analysts are most optimistic on the Electronic Manufacturing Services industry, expecting annual earnings growth of 29% over the next 5 years.
- This is better than its past earnings decline of 7.2% per year.
- In contrast, the Technology Distributors industry is expected to see its earnings grow by 9.6% 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 | |
|---|---|---|---|---|---|
| 3969 China Railway Signal & Communication | HK$2.46 | 5.1% +HK$1.3b | -9.9% | PE6.9x | |
| 327 PAX Global Technology | HK$6.77 | 4.6% +HK$323.9m | 6.6% | PE5.8x | |
| 3393 Wasion Holdings | HK$2.65 | 8.2% +HK$199.2m | -8.9% | PE8.4x | |
| 259 Yeebo (International Holdings) | HK$2.91 | 4.3% +HK$117.8m | 8.6% | PE6.5x | |
| 732 Truly International Holdings | HK$1.37 | 3.8% +HK$115.7m | -47.5% | PE3.9x |
