Risks To Shareholder Returns Are Elevated At These Prices For Huadian Power International Corporation Limited (HKG:1071)
Apr 18
Hong Kong (HSI) Utilities Sector Analysis
UpdatedApr 19, 2024
DataAggregated Company Financials
Companies60
- 7D-3.6%
- 3M8.7%
- 1Y-7.8%
- YTD3.7%
Over the last 7 days, the Utilities industry has dropped 3.6%, driven by CK Infrastructure Holdings declining 7.8%. However, the industry is down 7.8% over the past year. As for the next few years, earnings are expected to grow by 12% per annum.
Sector Valuation and Performance
Has the Hong Kong Utilities Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 19 Apr 2024 | HK$1.6t | HK$1.8t | HK$121.3b | 8.6x | 13.5x | 0.9x |
| Sun, 17 Mar 2024 | HK$1.7t | HK$1.8t | HK$120.1b | 8.9x | 13.9x | 0.9x |
| Tue, 13 Feb 2024 | HK$1.6t | HK$1.8t | HK$124.8b | 8x | 12.6x | 0.9x |
| Thu, 11 Jan 2024 | HK$1.6t | HK$1.8t | HK$125.0b | 8.4x | 12.6x | 0.9x |
| Sat, 09 Dec 2023 | HK$1.5t | HK$1.8t | HK$125.0b | 7.7x | 11.9x | 0.8x |
| Mon, 06 Nov 2023 | HK$1.5t | HK$1.8t | HK$125.9b | 8x | 11.9x | 0.8x |
| Wed, 04 Oct 2023 | HK$1.5t | HK$1.8t | HK$115.0b | 8x | 13.2x | 0.8x |
| Fri, 01 Sep 2023 | HK$1.5t | HK$1.8t | HK$115.1b | 8.4x | 13.3x | 0.8x |
| Sun, 30 Jul 2023 | HK$1.7t | HK$1.8t | HK$98.8b | 9.5x | 17x | 0.9x |
| Tue, 27 Jun 2023 | HK$1.6t | HK$1.8t | HK$94.7b | 9.4x | 17.1x | 0.9x |
| Thu, 25 May 2023 | HK$1.7t | HK$1.8t | HK$95.5b | 9.7x | 17.7x | 0.9x |
| Sat, 22 Apr 2023 | HK$1.7t | HK$1.9t | HK$91.5b | 9.6x | 18.3x | 0.9x |
| Mon, 20 Mar 2023 | HK$1.7t | HK$1.8t | HK$59.6b | 9x | 28.6x | 0.9x |
| Wed, 15 Feb 2023 | HK$1.8t | HK$1.8t | HK$59.1b | 9x | 29.8x | 1x |
| Fri, 13 Jan 2023 | HK$1.7t | HK$1.8t | HK$59.1b | 9x | 29.1x | 0.9x |
| Sun, 11 Dec 2022 | HK$1.6t | HK$1.8t | HK$59.2b | 8.4x | 27.3x | 0.9x |
| Tue, 08 Nov 2022 | HK$1.5t | HK$1.7t | HK$60.0b | 8.1x | 24.3x | 0.8x |
| Thu, 06 Oct 2022 | HK$1.6t | HK$1.7t | HK$54.6b | 8.1x | 28.9x | 0.9x |
| Sat, 03 Sep 2022 | HK$1.8t | HK$1.8t | HK$54.0b | 8.4x | 32.7x | 1x |
| Mon, 01 Aug 2022 | HK$1.8t | HK$1.7t | HK$73.1b | 8.5x | 24.8x | 1.1x |
| Wed, 29 Jun 2022 | HK$1.9t | HK$1.7t | HK$73.2b | 8.5x | 25.8x | 1.1x |
| Fri, 27 May 2022 | HK$1.9t | HK$1.7t | HK$75.0b | 8.4x | 25.4x | 1.1x |
| Sun, 24 Apr 2022 | HK$1.9t | HK$1.7t | HK$84.8b | 8.6x | 22.2x | 1.1x |
| Tue, 22 Mar 2022 | HK$2.0t | HK$1.7t | HK$116.0b | 8.7x | 17x | 1.2x |
| Thu, 17 Feb 2022 | HK$2.1t | HK$1.6t | HK$127.7b | 9.6x | 16.5x | 1.3x |
| Sat, 15 Jan 2022 | HK$2.2t | HK$1.6t | HK$127.5b | 9.6x | 16.9x | 1.3x |
| Mon, 13 Dec 2021 | HK$2.2t | HK$1.6t | HK$127.5b | 9.7x | 16.9x | 1.3x |
| Wed, 10 Nov 2021 | HK$2.1t | HK$1.6t | HK$128.0b | 9.5x | 16.1x | 1.3x |
| Fri, 08 Oct 2021 | HK$2.2t | HK$1.6t | HK$142.2b | 9.9x | 15.6x | 1.4x |
| Sun, 05 Sep 2021 | HK$2.2t | HK$1.6t | HK$141.0b | 11x | 15.6x | 1.4x |
| Tue, 03 Aug 2021 | HK$2.1t | HK$1.6t | HK$141.0b | 8.8x | 14.7x | 1.3x |
| Fri, 07 May 2021 | HK$2.0t | HK$1.5t | HK$138.0b | 8.6x | 14.1x | 1.3x |
Price to Earnings Ratio
14.1x
Current Industry PE
- Investors are pessimistic on the Hong Kong Utilities 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 13.5x which is lower than its 3-year average PE of 19.0x.
- The 3-year average PS ratio of 1.1x is higher than the industry's current PS ratio of 0.90x.
Past Earnings Growth
- The earnings for companies in the Utilities industry have declined 4.2% per year over the last three years.
- Meanwhile revenues for these companies have grown 6.8% 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 Utilities sector?
| HK Market | -1.99% | |
| Utilities | -3.58% | |
| Other Utilities | 1.86% | |
| Water Utilities | -1.42% | |
| Renewable Energy | -1.61% | |
| Electric Utilities | -5.14% | |
| Gas Utilities | -6.11% | |
Industry PE
- Investors are most optimistic about the Electric Utilities industry even though it's trading below its 3-year average PE ratio of 18.9x.
- Analysts expect its future annual earnings growth (6.9%) to be largely in line with prior year's earnings growth.
- Investors are most pessimistic about the Other Utilities industry, which is trading below its 3-year average of 3.9x.
Forecasted Growth
- Analysts are most optimistic on the Renewable Energy industry, expecting annual earnings growth of 16% over the next 5 years.
- This is better than its past earnings growth rate of 7.4% per year.
- In contrast, the Electric Utilities industry is expected to see its earnings grow by 6.9% 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 | |
|---|---|---|---|---|---|
| 1816 CGN Power | HK$2.61 | 4.8% +HK$6.1b | 32.5% | PE11.4x | |
| 686 Beijing Energy International Holding | HK$0.13 | 4.7% +HK$134.0m | -29.1% | PE65.9x | |
| 1026 Universal Technologies Holdings | HK$0.12 | 15.0% +HK$82.7m | 0.9% | PS2x | |
| 1811 CGN New Energy Holdings | HK$2.31 | 0.4% +HK$42.9m | -8.0% | PE4.7x | |
| 882 Tianjin Development Holdings | HK$1.64 | 1.9% +HK$32.2m | 4.5% | PE2.8x |
