BYD's (HKG:1211) Returns On Capital Are Heading Higher
May 22
Hong Kong (HSI) Market Analysis & Valuation
UpdatedMay 22, 2024
DataAggregated Company Financials
Companies2301
- 7D1.3%
- 3M17.2%
- 1Y1.6%
- YTD17.6%
Over the last 7 days, the market has risen 1.3%, driven by gains of 4.1% in the Financials sector. In contrast, the Healthcare sector is lagging, dropping 3.2%. In the last 12 months, the market has been flat. As for the next few years, earnings are expected to grow by 12% per annum.
Market Valuation and Performance
Has the Hong Kong Market valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 23 May 2024 | HK$42.8t | HK$43.2t | HK$3.4t | 9.9x | 12.5x | 1x |
| Sat, 20 Apr 2024 | HK$39.2t | HK$43.2t | HK$3.4t | 9.1x | 11.5x | 0.9x |
| Mon, 18 Mar 2024 | HK$38.4t | HK$43.9t | HK$3.5t | 8.8x | 11x | 0.9x |
| Wed, 14 Feb 2024 | HK$36.3t | HK$43.5t | HK$3.3t | 8.7x | 10.9x | 0.8x |
| Fri, 12 Jan 2024 | HK$37.0t | HK$45.6t | HK$3.5t | 9.1x | 10.6x | 0.8x |
| Sun, 10 Dec 2023 | HK$37.1t | HK$45.8t | HK$3.5t | 8.9x | 10.7x | 0.8x |
| Tue, 07 Nov 2023 | HK$39.0t | HK$45.2t | HK$3.5t | 9x | 11.3x | 0.9x |
| Thu, 05 Oct 2023 | HK$39.4t | HK$45.0t | HK$3.4t | 9x | 11.5x | 0.9x |
| Sat, 02 Sep 2023 | HK$40.2t | HK$45.3t | HK$3.5t | 9.3x | 11.6x | 0.9x |
| Mon, 31 Jul 2023 | HK$43.0t | HK$46.0t | HK$3.7t | 9.7x | 11.6x | 0.9x |
| Wed, 28 Jun 2023 | HK$41.6t | HK$45.8t | HK$3.7t | 9.7x | 11.3x | 0.9x |
| Fri, 26 May 2023 | HK$42.4t | HK$46.7t | HK$3.7t | 9.5x | 11.4x | 0.9x |
| Sun, 23 Apr 2023 | HK$44.3t | HK$47.5t | HK$3.8t | 9.9x | 11.7x | 0.9x |
| Tue, 21 Mar 2023 | HK$42.3t | HK$47.5t | HK$4.1t | 8.7x | 10.3x | 0.9x |
| Thu, 16 Feb 2023 | HK$43.8t | HK$47.9t | HK$4.3t | 9x | 10.3x | 0.9x |
| Sat, 14 Jan 2023 | HK$44.8t | HK$48.4t | HK$4.3t | 8.9x | 10.4x | 0.9x |
| Mon, 12 Dec 2022 | HK$42.4t | HK$46.9t | HK$4.2t | 8.8x | 10.2x | 0.9x |
| Wed, 09 Nov 2022 | HK$36.8t | HK$45.8t | HK$4.1t | 8.2x | 9.1x | 0.8x |
| Fri, 07 Oct 2022 | HK$38.4t | HK$45.6t | HK$4.0t | 8.5x | 9.5x | 0.8x |
| Sun, 04 Sep 2022 | HK$41.0t | HK$46.7t | HK$4.2t | 9.1x | 9.9x | 0.9x |
| Tue, 02 Aug 2022 | HK$42.1t | HK$46.8t | HK$4.3t | 8.7x | 9.7x | 0.9x |
| Thu, 30 Jun 2022 | HK$45.7t | HK$47.0t | HK$4.4t | 9.3x | 10.5x | 1x |
| Sat, 28 May 2022 | HK$43.7t | HK$46.8t | HK$4.4t | 8.8x | 10x | 0.9x |
| Mon, 25 Apr 2022 | HK$44.2t | HK$47.4t | HK$4.4t | 9.1x | 10.1x | 0.9x |
| Wed, 23 Mar 2022 | HK$45.7t | HK$46.8t | HK$4.5t | 8.5x | 10.1x | 1x |
| Fri, 18 Feb 2022 | HK$50.7t | HK$46.5t | HK$4.5t | 9x | 11.4x | 1.1x |
| Sun, 16 Jan 2022 | HK$49.8t | HK$46.2t | HK$4.4t | 9.1x | 11.2x | 1.1x |
| Tue, 14 Dec 2021 | HK$50.0t | HK$46.1t | HK$4.4t | 9.2x | 11.3x | 1.1x |
| Thu, 11 Nov 2021 | HK$50.1t | HK$45.9t | HK$4.4t | 9.4x | 11.4x | 1.1x |
| Sat, 09 Oct 2021 | HK$50.9t | HK$44.4t | HK$4.3t | 9.6x | 11.7x | 1.1x |
| Mon, 06 Sep 2021 | HK$53.4t | HK$44.2t | HK$4.3t | 10.8x | 12.4x | 1.2x |
| Wed, 04 Aug 2021 | HK$51.9t | HK$44.2t | HK$4.3t | 10.4x | 12x | 1.2x |
Price to Earnings Ratio
15.2x
Current Market PE
- Investors are optimistic on the Hong Kong market, and appear confident in strong long term growth rates.
- The market is trading at a PE ratio of 12.5x which is higher than its 3-year average PE of 11.1x.
Past Earnings Growth
- The earnings for Hong Kong listed companies have declined 3.6% per year over the last three years.
- Meanwhile revenues have been flat.
- This means that either the cost of doing business or the level of investment back into businesses is increasing since sales have remained steady while profits have fallen.
Sector Trends
Which sectors have driven the changes within the Hong Kong Market?
| HK Market | 1.26% | |
| Real Estate | 4.95% | |
| Financials | 4.05% | |
| Energy | 1.78% | |
| Materials | 1.34% | |
| Telecom | -0.15% | |
| Industrials | -0.23% | |
| Utilities | -0.24% | |
| Consumer Discretionary | -0.99% | |
| Consumer Staples | -1.28% | |
| Tech | -1.94% | |
| Healthcare | -3.24% | |
Sector PE
- Investors favour the Healthcare sector the most for future growth even though it's trading below its 3-year average PE ratio of 123x.
- The market's confidence is likely because analysts are expecting annual earnings growth of 24.1%, which is higher than its past year's earnings growth of 1.1% per year.
Forecasted Growth
- Analysts are most optimistic on the Materials sector, expecting annual earnings growth of 24% over the next 5 years.
- This is better than its past earnings decline of 7.3% per year.
- In contrast, the Energy industry is expected to see its earnings growth to stay flat 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 | Sector | |
|---|---|---|---|---|---|---|
| 1398 Industrial and Commercial Bank of China | HK$4.76 | 6.5% +HK$103.4b | 10.7% | PB0.4x | Financials | |
| 939 China Construction Bank | HK$5.89 | 5.9% +HK$82.5b | 14.1% | PB0.4x | Financials | |
| 3988 Bank of China | HK$3.96 | 7.3% +HK$79.5b | 24.9% | PB0.4x | Financials | |
| 1288 Agricultural Bank of China | HK$3.80 | 3.3% +HK$42.0b | 24.6% | PB0.4x | Financials | |
| 2628 China Life Insurance | HK$12.42 | 6.7% +HK$22.0b | -11.3% | PE17.2x | Financials |
