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Hong Kong (HSI) Market Analysis & Valuation
UpdatedSep 25, 2024
DataAggregated Company Financials
Companies2293
- 7D6.8%
- 3M-1.8%
- 1Y8.2%
- YTD10.9%
Over the last 7 days, the market has risen 6.8%, driven by gains in every sector, especially the Financials sector. The market is up 8.2% over the last 12 months. Earnings are forecast to grow by 12% annually.
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 |
|---|---|---|---|---|---|---|
| Wed, 25 Sep 2024 | HK$41.3t | HK$43.9t | HK$3.6t | 9.2x | 11.4x | 0.9x |
| Fri, 23 Aug 2024 | HK$40.3t | HK$43.3t | HK$3.5t | 8.8x | 11.4x | 0.9x |
| Sun, 21 Jul 2024 | HK$40.3t | HK$42.6t | HK$3.5t | 9.4x | 11.6x | 0.9x |
| Tue, 18 Jun 2024 | HK$41.0t | HK$43.2t | HK$3.4t | 9.5x | 12x | 0.9x |
| Thu, 16 May 2024 | HK$42.5t | HK$43.3t | HK$3.4t | 9.8x | 12.4x | 1x |
| Sat, 13 Apr 2024 | HK$39.0t | HK$43.3t | HK$3.4t | 9.2x | 11.4x | 0.9x |
| Mon, 11 Mar 2024 | HK$38.2t | HK$43.3t | HK$3.4t | 8.8x | 11.2x | 0.9x |
| Wed, 07 Feb 2024 | HK$36.7t | HK$44.0t | HK$3.4t | 8.5x | 10.9x | 0.8x |
| Fri, 05 Jan 2024 | HK$37.9t | HK$45.9t | HK$3.5t | 9.2x | 10.9x | 0.8x |
| Sun, 03 Dec 2023 | HK$38.1t | HK$45.9t | HK$3.5t | 9x | 11x | 0.8x |
| Tue, 31 Oct 2023 | HK$38.2t | HK$45.0t | HK$3.4t | 9x | 11.1x | 0.8x |
| Thu, 28 Sep 2023 | HK$39.1t | HK$44.9t | HK$3.4t | 9.1x | 11.5x | 0.9x |
| Sat, 26 Aug 2023 | HK$39.6t | HK$45.4t | HK$3.6t | 9.4x | 11x | 0.9x |
| Mon, 24 Jul 2023 | HK$41.2t | HK$45.9t | HK$3.7t | 9.5x | 11.2x | 0.9x |
| Wed, 21 Jun 2023 | HK$42.3t | HK$46.0t | HK$3.7t | 9.7x | 11.5x | 0.9x |
| Fri, 19 May 2023 | HK$44.0t | HK$46.8t | HK$3.7t | 9.7x | 11.8x | 0.9x |
| Sun, 16 Apr 2023 | HK$44.8t | HK$47.7t | HK$3.8t | 9.9x | 11.7x | 0.9x |
| Tue, 14 Mar 2023 | HK$43.1t | HK$47.6t | HK$4.1t | 8.8x | 10.4x | 0.9x |
| Thu, 09 Feb 2023 | HK$44.4t | HK$49.6t | HK$4.4t | 9x | 10.1x | 0.9x |
| Sat, 07 Jan 2023 | HK$43.5t | HK$47.6t | HK$4.2t | 8.9x | 10.3x | 0.9x |
| Mon, 05 Dec 2022 | HK$40.1t | HK$46.4t | HK$4.1t | 8.5x | 9.7x | 0.9x |
| Wed, 02 Nov 2022 | HK$34.5t | HK$45.2t | HK$4.0t | 7.9x | 8.6x | 0.8x |
| Fri, 30 Sep 2022 | HK$37.2t | HK$45.2t | HK$4.0t | 8.4x | 9.3x | 0.8x |
| Sun, 28 Aug 2022 | HK$41.5t | HK$46.9t | HK$4.2t | 8.9x | 9.8x | 0.9x |
| Tue, 26 Jul 2022 | HK$42.9t | HK$46.8t | HK$4.3t | 8.9x | 9.9x | 0.9x |
| Thu, 23 Jun 2022 | HK$44.4t | HK$47.2t | HK$4.4t | 9x | 10.2x | 0.9x |
| Sat, 21 May 2022 | HK$43.9t | HK$47.1t | HK$4.3t | 8.8x | 10.2x | 0.9x |
| Mon, 18 Apr 2022 | HK$46.1t | HK$48.1t | HK$4.5t | 9.2x | 10.4x | 1x |
| Wed, 16 Mar 2022 | HK$40.1t | HK$46.6t | HK$4.6t | 7.6x | 8.8x | 0.9x |
| Fri, 11 Feb 2022 | HK$51.1t | HK$46.2t | HK$4.4t | 9.1x | 11.5x | 1.1x |
| Sun, 09 Jan 2022 | HK$49.0t | HK$46.1t | HK$4.4t | 9x | 11.1x | 1.1x |
| Tue, 07 Dec 2021 | HK$48.8t | HK$46.1t | HK$4.4t | 8.9x | 11x | 1.1x |
| Thu, 04 Nov 2021 | HK$50.1t | HK$45.7t | HK$4.4t | 9.3x | 11.4x | 1.1x |
| Sat, 02 Oct 2021 | HK$50.8t | HK$44.4t | HK$4.4t | 9.7x | 11.7x | 1.1x |
Price to Earnings Ratio
11.7x
Current Market PE
- Investors are relatively neutral on the Hong Kong market at the moment, indicating that they expect earnings will grow in line with historical growth rates.
- The market is trading close to its 3-year average PE ratio of 10.9x.
Past Earnings Growth
- The earnings for Hong Kong listed companies have declined 6.0% 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 | 6.79% | |
| Consumer Staples | 10.21% | |
| Materials | 9.68% | |
| Tech | 8.31% | |
| Energy | 7.93% | |
| Financials | 7.88% | |
| Consumer Discretionary | 7.00% | |
| Real Estate | 5.98% | |
| Industrials | 5.61% | |
| Telecom | 4.80% | |
| Utilities | 4.50% | |
| Healthcare | 1.12% | |
| Information Technology | 0% | |
| Financials | 0% | |
| Health Care | 0% | |
| Industrials | 0% | |
Sector PE
- Investors favour the Tech sector the most for future growth, which is trading above its 3-year average PE ratio of 23.8x.
- The market's confidence is likely because analysts are expecting annual earnings growth of 25.1% which is higher than its past year's earnings decline of 0.5% per year.
Forecasted Growth
- Analysts are most optimistic on the Healthcare sector, expecting annual earnings growth of 27% over the next 5 years.
- This is better than its past earnings decline of 1.7% 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 | |
|---|---|---|---|---|---|---|
| 700 Tencent Holdings | HK$402.20 | 5.8% +HK$203.3b | 34.1% | PE21.9x | Telecom | |
| 1398 Industrial and Commercial Bank of China | HK$4.70 | 8.3% +HK$128.3b | 27.0% | PB0.4x | Financials | |
| 1288 Agricultural Bank of China | HK$3.85 | 7.5% +HK$94.5b | 35.1% | PB0.4x | Financials | |
| 939 China Construction Bank | HK$5.93 | 6.5% +HK$90.0b | 35.7% | PB0.4x | Financials | |
| 857 PetroChina | HK$6.22 | 8.2% +HK$86.0b | 8.4% | PE6.3x | Energy |
