Returns On Capital Are Showing Encouraging Signs At CNOOC (HKG:883)
Aug 27
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Hong Kong (HSI) Market Analysis & Valuation
UpdatedAug 28, 2024
DataAggregated Company Financials
Companies2295
- 7D2.1%
- 3M-5.4%
- 1Y3.4%
- YTD9.3%
The Energy and Financials sectors drove a 2.1% in the market over the last week. In the last year, the market has climbed 3.4%. Looking forward, earnings are forecast to grow by 11% 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, 28 Aug 2024 | HK$41.0t | HK$43.5t | HK$3.6t | 8.7x | 11.4x | 0.9x |
| Fri, 26 Jul 2024 | HK$39.4t | HK$42.7t | HK$3.5t | 9.1x | 11.3x | 0.9x |
| Sun, 23 Jun 2024 | HK$41.2t | HK$43.1t | HK$3.4t | 9.5x | 12.1x | 1x |
| Tue, 21 May 2024 | HK$43.4t | HK$43.2t | HK$3.4t | 10x | 12.7x | 1x |
| Thu, 18 Apr 2024 | HK$39.0t | HK$43.2t | HK$3.4t | 9.1x | 11.4x | 0.9x |
| Sat, 16 Mar 2024 | HK$38.4t | HK$43.8t | HK$3.5t | 8.8x | 11x | 0.9x |
| Mon, 12 Feb 2024 | HK$36.4t | HK$43.7t | HK$3.3t | 8.7x | 10.9x | 0.8x |
| Wed, 10 Jan 2024 | HK$37.2t | HK$46.0t | HK$3.5t | 9.1x | 10.7x | 0.8x |
| Fri, 08 Dec 2023 | HK$37.2t | HK$45.9t | HK$3.5t | 8.9x | 10.7x | 0.8x |
| Sun, 05 Nov 2023 | HK$38.6t | HK$45.1t | HK$3.4t | 9x | 11.2x | 0.9x |
| Tue, 03 Oct 2023 | HK$39.4t | HK$45.0t | HK$3.4t | 9.2x | 11.5x | 0.9x |
| Thu, 31 Aug 2023 | HK$40.2t | HK$45.1t | HK$3.5t | 9.3x | 11.4x | 0.9x |
| Sat, 29 Jul 2023 | HK$42.9t | HK$46.0t | HK$3.7t | 9.7x | 11.6x | 0.9x |
| Mon, 26 Jun 2023 | HK$41.3t | HK$46.0t | HK$3.7t | 9.5x | 11.2x | 0.9x |
| Wed, 24 May 2023 | HK$43.2t | HK$46.7t | HK$3.7t | 9.7x | 11.6x | 0.9x |
| Fri, 21 Apr 2023 | HK$44.9t | HK$47.6t | HK$3.8t | 9.8x | 11.8x | 0.9x |
| Sun, 19 Mar 2023 | HK$40.1t | HK$43.2t | HK$3.9t | 9.3x | 10.4x | 0.9x |
| Tue, 14 Feb 2023 | HK$44.3t | HK$47.9t | HK$4.3t | 9x | 10.4x | 0.9x |
| Thu, 12 Jan 2023 | HK$44.1t | HK$48.0t | HK$4.3t | 8.8x | 10.3x | 0.9x |
| Sat, 10 Dec 2022 | HK$42.4t | HK$46.8t | HK$4.2t | 8.8x | 10.2x | 0.9x |
| Mon, 07 Nov 2022 | HK$36.1t | HK$45.8t | HK$4.1t | 8.1x | 8.9x | 0.8x |
| Wed, 05 Oct 2022 | HK$37.2t | HK$45.6t | HK$4.0t | 8.3x | 9.2x | 0.8x |
| Fri, 02 Sep 2022 | HK$41.3t | HK$46.8t | HK$4.2t | 9.2x | 9.9x | 0.9x |
| Sun, 31 Jul 2022 | HK$42.3t | HK$46.8t | HK$4.3t | 8.8x | 9.7x | 0.9x |
| Tue, 28 Jun 2022 | HK$46.0t | HK$47.1t | HK$4.4t | 9.3x | 10.5x | 1x |
| Thu, 26 May 2022 | HK$43.3t | HK$47.2t | HK$4.4t | 8.7x | 9.8x | 0.9x |
| Sat, 23 Apr 2022 | HK$44.3t | HK$47.7t | HK$4.4t | 9.1x | 10x | 0.9x |
| Mon, 21 Mar 2022 | HK$45.1t | HK$46.7t | HK$4.5t | 8.3x | 10x | 1x |
| Wed, 16 Feb 2022 | HK$50.0t | HK$46.3t | HK$4.5t | 8.9x | 11.2x | 1.1x |
| Fri, 14 Jan 2022 | HK$50.0t | HK$46.2t | HK$4.4t | 9.1x | 11.3x | 1.1x |
| Sun, 12 Dec 2021 | HK$50.1t | HK$46.1t | HK$4.4t | 9.3x | 11.3x | 1.1x |
| Tue, 09 Nov 2021 | HK$49.7t | HK$45.8t | HK$4.4t | 9.3x | 11.3x | 1.1x |
| Thu, 07 Oct 2021 | HK$49.9t | HK$44.4t | HK$4.3t | 9.6x | 11.5x | 1.1x |
| Sat, 04 Sep 2021 | HK$53.0t | HK$44.2t | HK$4.3t | 10.6x | 12.3x | 1.2x |
Price to Earnings Ratio
12.3x
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 11.0x.
Past Earnings Growth
- The earnings for Hong Kong listed companies have declined 6.1% 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 | 2.06% | |
| Energy | 6.02% | |
| Telecom | 2.46% | |
| Financials | 2.27% | |
| Consumer Staples | 1.87% | |
| Tech | 1.39% | |
| Real Estate | 1.37% | |
| Consumer Discretionary | 1.11% | |
| Materials | 1.08% | |
| Information Technology | 0% | |
| Financials | 0% | |
| Health Care | 0% | |
| Industrials | 0% | |
| Utilities | -0.032% | |
| Industrials | -0.14% | |
| Healthcare | -2.38% | |
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 153x.
- The market's confidence is likely because analysts are expecting annual earnings growth of 23.0%, which is higher than its past year's earnings growth of 1.3% per year.
Forecasted Growth
- Analysts are most optimistic on the Tech sector, expecting annual earnings growth of 24% over the next 5 years.
- This is better than its past earnings growth rate of 0.5% 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$381.80 | 3.1% +HK$100.8b | 15.9% | PE20.9x | Telecom | |
| 857 PetroChina | HK$7.15 | 6.1% +HK$75.0b | 26.1% | PE7.3x | Energy | |
| 883 CNOOC | HK$21.40 | 6.2% +HK$59.4b | 63.6% | PE7.1x | Energy | |
| 386 China Petroleum & Chemical | HK$5.43 | 9.5% +HK$57.2b | 19.3% | PE10.2x | Energy | |
| 941 China Mobile | HK$76.35 | 3.0% +HK$48.3b | 15.7% | PE11x | Telecom |
