Is There An Opportunity With Xinyi Energy Holdings Limited's (HKG:3868) 24% Undervaluation?
Jan 20
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Hong Kong (HSI) Renewable Energy Industry Analysis
UpdatedJan 20, 2025
DataAggregated Company Financials
Companies24
- 7D1.7%
- 3M-12.2%
- 1Y11.1%
- YTD-5.8%
The Renewable Energy industry is up 1.7% in the last week, with CGN Power up 2.0%. In the last 12 months, the industry was up 11%. Looking forward, earnings are forecast to grow by 16% annually.
Industry Valuation and Performance
Has the Hong Kong Renewable Energy Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 21 Jan 2025 | HK$699.1b | HK$885.4b | HK$53.9b | 7.8x | 13x | 0.8x |
| Thu, 19 Dec 2024 | HK$782.8b | HK$888.0b | HK$54.0b | 8.5x | 14.5x | 0.9x |
| Sat, 16 Nov 2024 | HK$762.5b | HK$895.0b | HK$54.3b | 8.1x | 14x | 0.9x |
| Mon, 14 Oct 2024 | HK$771.6b | HK$902.8b | HK$58.5b | 9x | 13.2x | 0.9x |
| Wed, 11 Sep 2024 | HK$706.2b | HK$899.5b | HK$58.4b | 7.3x | 12.1x | 0.8x |
| Fri, 09 Aug 2024 | HK$798.4b | HK$901.2b | HK$56.1b | 8.9x | 14.2x | 0.9x |
| Sun, 07 Jul 2024 | HK$875.7b | HK$901.1b | HK$57.2b | 9.7x | 15.3x | 1x |
| Tue, 04 Jun 2024 | HK$824.0b | HK$903.6b | HK$58.0b | 9.6x | 14.2x | 0.9x |
| Thu, 02 May 2024 | HK$781.0b | HK$904.4b | HK$58.0b | 9.1x | 13.5x | 0.9x |
| Sat, 30 Mar 2024 | HK$757.5b | HK$904.3b | HK$53.6b | 9.2x | 14.1x | 0.8x |
| Mon, 26 Feb 2024 | HK$752.8b | HK$914.5b | HK$52.9b | 8.8x | 14.2x | 0.8x |
| Wed, 24 Jan 2024 | HK$665.7b | HK$917.0b | HK$53.1b | 7.8x | 12.5x | 0.7x |
| Fri, 22 Dec 2023 | HK$668.5b | HK$918.6b | HK$53.1b | 7.9x | 12.6x | 0.7x |
| Sun, 19 Nov 2023 | HK$667.0b | HK$907.9b | HK$53.0b | 8.1x | 12.6x | 0.7x |
| Tue, 17 Oct 2023 | HK$664.9b | HK$902.3b | HK$41.2b | 7.4x | 16.1x | 0.7x |
| Thu, 14 Sep 2023 | HK$694.1b | HK$906.1b | HK$41.2b | 7.8x | 16.9x | 0.8x |
| Sat, 12 Aug 2023 | HK$716.1b | HK$894.3b | HK$36.1b | 8.4x | 19.8x | 0.8x |
| Mon, 10 Jul 2023 | HK$764.9b | HK$886.1b | HK$30.0b | 8.1x | 25.5x | 0.9x |
| Wed, 07 Jun 2023 | HK$703.7b | HK$898.2b | HK$30.3b | 8.2x | 23.3x | 0.8x |
| Fri, 05 May 2023 | HK$729.2b | HK$921.0b | HK$30.7b | 9.2x | 23.7x | 0.8x |
| Sun, 02 Apr 2023 | HK$679.8b | HK$923.8b | HK$24.9b | 10.3x | 27.3x | 0.7x |
| Tue, 28 Feb 2023 | HK$656.8b | HK$886.9b | -HK$12,366,154,960.00 | 8.4x | -53.1x | 0.7x |
| Thu, 26 Jan 2023 | HK$691.2b | HK$903.5b | -HK$12,761,394,652.00 | 9.1x | -54.2x | 0.8x |
| Sat, 24 Dec 2022 | HK$588.5b | HK$878.7b | -HK$12,197,602,148.00 | 8x | -48.2x | 0.7x |
| Mon, 21 Nov 2022 | HK$614.8b | HK$866.7b | -HK$11,914,983,122.00 | 8.4x | -51.6x | 0.7x |
| Wed, 19 Oct 2022 | HK$666.3b | HK$828.6b | -HK$17,428,348,898.00 | 8.2x | -38.2x | 0.8x |
| Fri, 16 Sep 2022 | HK$718.4b | HK$852.5b | -HK$17,568,495,976.00 | 8.6x | -40.9x | 0.8x |
| Sun, 14 Aug 2022 | HK$661.7b | HK$861.3b | -HK$16,478,026,223.00 | 7.8x | -40.2x | 0.8x |
| Tue, 12 Jul 2022 | HK$764.7b | HK$859.8b | -HK$12,507,467,503.00 | 8.4x | -61.1x | 0.9x |
| Thu, 09 Jun 2022 | HK$722.8b | HK$863.9b | -HK$12,647,801,286.00 | 8.3x | -57.1x | 0.8x |
| Sat, 07 May 2022 | HK$673.4b | HK$864.2b | -HK$12,350,398,551.00 | 8.6x | -54.5x | 0.8x |
| Mon, 04 Apr 2022 | HK$745.9b | HK$873.0b | -HK$3,896,174,465.00 | 8.5x | -191.4x | 0.9x |
| Wed, 02 Mar 2022 | HK$810.8b | HK$840.0b | HK$34.9b | 10.2x | 23.2x | 1x |
| Fri, 28 Jan 2022 | HK$792.8b | HK$835.9b | HK$34.8b | 10.3x | 22.8x | 0.9x |
Price to Earnings Ratio
22.8x
Current Industry PE
- Investors are pessimistic on the Hong Kong Renewable Energy 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 13.0x which is higher than its 3-year average PE of -7.9x.
- The industry is trading close to its 3-year average PS ratio of 0.81x.
Past Earnings Growth
- The earnings for companies in the Renewable Energy industry have grown 16% per year over the last three years, while revenues have remained mostly flat.
- This means that companies overall are more efficiently conducting business since profits are increasing while sales have been flat.
Industry Trends
Which industries have driven the changes within the Hong Kong Utilities industry?
| HK Market | 2.14% | |
| Utilities | 1.03% | |
| Renewable Energy | 1.68% | |
| Independent Power Producers and Energy Traders | 1.89% | |
| Renewable Energy | 1.07% | |
Industry PE
- Investors are most optimistic about the Renewable Energy industry which is trading above its 3-year average PE ratio of 17.0x.
- Analysts are expecting annual earnings growth of 16.5%, which is higher than its past year's earnings decline of 2.2% per year.
- Investors are most pessimistic about the Independent Power Producers and Energy Traders industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 2.4x.
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 decline of 2.2% per year.
- In contrast, the Independent Power Producers and Energy Traders industry is expected to see its earnings grow by 16% 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$2.52 | 2.0% +HK$2.5b | 23.5% | PE10.9x | |
| 902 Huaneng Power International | HK$4.00 | 3.1% +HK$1.9b | -2.9% | PE17.5x | |
| 916 China Longyuan Power Group | HK$5.77 | 3.4% +HK$1.6b | 30.5% | PE8.2x | |
| 1798 China Datang Corporation Renewable Power | HK$1.99 | 7.0% +HK$945.6m | 30.9% | PE7.3x | |
| 3868 Xinyi Energy Holdings | HK$0.78 | 8.3% +HK$502.6m | -31.0% | PE8x |
