We Think Tianjin Jinran Public Utilities (HKG:1265) Needs To Drive Business Growth Carefully
Nov 20
Hong Kong (HSI) Utilities Sector Analysis
UpdatedNov 30, 2023
DataAggregated Company Financials
Companies59
- 7D-2.8%
- 3M-3.9%
- 1Y-13.5%
- YTD-18.9%
Over the last 7 days, the Utilities industry has dropped 2.8%, and Hong Kong and China Gas contributed the most with a 4.7% decline. Overall the industry is down 14% in 12 months. Earnings are forecast to grow by 14% annually.
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 |
|---|---|---|---|---|---|---|
| Thu, 30 Nov 2023 | HK$1.5t | HK$1.8t | HK$125.2b | 7.9x | 11.8x | 0.8x |
| Sat, 28 Oct 2023 | HK$1.5t | HK$1.8t | HK$124.6b | 8x | 12x | 0.8x |
| Mon, 25 Sep 2023 | HK$1.5t | HK$1.8t | HK$115.1b | 8.3x | 13.2x | 0.8x |
| Wed, 23 Aug 2023 | HK$1.6t | HK$1.8t | HK$108.4b | 9.4x | 14.4x | 0.9x |
| Fri, 21 Jul 2023 | HK$1.7t | HK$1.8t | HK$92.5b | 9.2x | 17.9x | 0.9x |
| Sun, 18 Jun 2023 | HK$1.6t | HK$1.8t | HK$95.2b | 9.6x | 17.3x | 0.9x |
| Tue, 16 May 2023 | HK$1.8t | HK$1.9t | HK$96.0b | 10.1x | 18.4x | 1x |
| Thu, 13 Apr 2023 | HK$1.7t | HK$1.9t | HK$91.5b | 9.1x | 18.2x | 0.9x |
| Sat, 11 Mar 2023 | HK$1.7t | HK$1.8t | HK$60.9b | 8.4x | 27.3x | 0.9x |
| Mon, 06 Feb 2023 | HK$1.7t | HK$1.8t | HK$59.1b | 8.8x | 29.5x | 1x |
| Wed, 04 Jan 2023 | HK$1.7t | HK$1.8t | HK$59.1b | 8.6x | 28.6x | 0.9x |
| Fri, 02 Dec 2022 | HK$1.6t | HK$1.8t | HK$59.2b | 8.3x | 26.7x | 0.9x |
| Sun, 30 Oct 2022 | HK$1.4t | HK$1.7t | HK$62.1b | 8.1x | 22.9x | 0.8x |
| Tue, 27 Sep 2022 | HK$1.6t | HK$1.7t | HK$54.3b | 8x | 29.9x | 0.9x |
| Thu, 25 Aug 2022 | HK$1.8t | HK$1.8t | HK$59.3b | 7.7x | 30.2x | 1x |
| Sat, 23 Jul 2022 | HK$1.8t | HK$1.7t | HK$73.4b | 8.6x | 24.8x | 1.1x |
| Mon, 20 Jun 2022 | HK$1.8t | HK$1.7t | HK$75.0b | 8.1x | 24.2x | 1.1x |
| Wed, 18 May 2022 | HK$1.9t | HK$1.7t | HK$75.6b | 8.6x | 24.5x | 1.1x |
| Fri, 15 Apr 2022 | HK$1.9t | HK$1.7t | HK$84.5b | 8.7x | 22.5x | 1.1x |
| Sun, 13 Mar 2022 | HK$2.0t | HK$1.6t | HK$125.8b | 9.1x | 16x | 1.2x |
| Tue, 08 Feb 2022 | HK$2.1t | HK$1.6t | HK$127.5b | 10.2x | 16.7x | 1.3x |
| Thu, 06 Jan 2022 | HK$2.2t | HK$1.6t | HK$127.4b | 9.9x | 17.5x | 1.4x |
| Sat, 04 Dec 2021 | HK$2.1t | HK$1.6t | HK$127.4b | 9.6x | 16.6x | 1.3x |
| Mon, 01 Nov 2021 | HK$2.2t | HK$1.6t | HK$127.6b | 10.1x | 16.9x | 1.4x |
| Wed, 29 Sep 2021 | HK$2.2t | HK$1.6t | HK$142.1b | 10.2x | 15.7x | 1.4x |
| Fri, 27 Aug 2021 | HK$2.1t | HK$1.6t | HK$141.0b | 10.1x | 14.7x | 1.3x |
| Sat, 03 Jul 2021 | HK$2.0t | HK$1.6t | HK$141.0b | 9.5x | 14.1x | 1.3x |
| Tue, 06 Apr 2021 | HK$2.0t | HK$1.5t | HK$138.0b | 8.5x | 14.2x | 1.3x |
| Fri, 08 Jan 2021 | HK$1.8t | HK$1.4t | HK$127.8b | 8.1x | 14.5x | 1.3x |
Price to Earnings Ratio
14.4x
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 11.8x which is lower than its 3-year average PE of 19.3x.
- The 3-year average PS ratio of 1.1x is higher than the industry's current PS ratio of 0.80x.
Past Earnings Growth
- The earnings for companies in the Utilities industry have remained mostly flat over the last three years.
- Meanwhile revenues for these companies have grown 11% 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 and as a result, profits have held steady.
Industry Trends
Which industries have driven the changes within the Hong Kong Utilities sector?
| HK Market | -2.95% | |
| Utilities | -2.84% | |
| Electric Utilities | -0.53% | |
| Other Utilities | -0.68% | |
| Renewable Energy | -3.26% | |
| Gas Utilities | -4.03% | |
| Water Utilities | -4.51% | |
Industry PE
- Investors are most optimistic about the Electric Utilities industry even though it's trading below its 3-year average PE ratio of 19.1x.
- Analysts are expecting annual earnings growth of 5.0%, which is higher than its past year's earnings decline of 4.3% per year.
- Investors are most pessimistic about the Other Utilities industry, which is trading below its 3-year average of 4.2x.
Forecasted Growth
- Analysts are most optimistic on the Renewable Energy industry, expecting annual earnings growth of 21% over the next 5 years.
- This is better than its past earnings decline of 12% per year.
- In contrast, the Electric Utilities industry is expected to see its earnings grow by 5.0% 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 | |
|---|---|---|---|---|---|
| 902 Huaneng Power International | HK$4.06 | 5.7% +HK$3.5b | 16.3% | PE8.4x | |
| 6 Power Assets Holdings | HK$40.75 | 1.2% +HK$1.1b | 1.6% | PE15.1x | |
| 2638 HK Electric Investments and HK Electric Investments | HK$4.49 | 1.1% +HK$441.8m | -21.4% | PE13x | |
| 135 Kunlun Energy | HK$7.22 | 0.6% +HK$346.4m | 21.5% | PE10.6x | |
| 1071 Huadian Power International | HK$3.20 | 0.3% +HK$102.3m | 10.0% | PE22x |
