With EPS Growth And More, Hong Leong Bank Berhad (KLSE:HLBANK) Is Interesting
Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...
Has the Malaysian Financials Sector valuation changed over the past few years?
|Thu, 09 Dec 2021||RM360.6b||RM97.0b||RM25.5b||9.5x|
|Sat, 06 Nov 2021||RM366.5b||RM96.0b||RM25.7b||10.1x|
|Mon, 04 Oct 2021||RM364.8b||RM97.0b||RM25.9b||9.9x|
|Wed, 01 Sep 2021||RM369.9b||RM96.9b||RM26.8b||10.1x|
|Thu, 08 Jul 2021||RM362.2b||RM96.9b||RM26.8b||9.5x|
|Wed, 31 Mar 2021||RM361.1b||RM91.4b||RM23.2b||11.4x|
|Sat, 02 Jan 2021||RM361.2b||RM87.9b||RM25.1b||11.3x|
|Tue, 06 Oct 2020||RM294.6b||RM89.1b||RM27.3b||11.4x|
|Fri, 10 Jul 2020||RM302.7b||RM90.3b||RM27.1b||11.5x|
|Thu, 02 Apr 2020||RM292.0b||RM95.7b||RM30.1b||8.6x|
|Sun, 05 Jan 2020||RM367.8b||RM97.9b||RM31.6b||11.8x|
|Wed, 09 Oct 2019||RM363.4b||RM96.2b||RM31.2b||11.7x|
|Tue, 02 Jul 2019||RM395.6b||RM95.0b||RM31.6b||12.4x|
|Fri, 05 Apr 2019||RM399.6b||RM93.8b||RM32.2b||12.1x|
|Mon, 07 Jan 2019||RM405.4b||RM93.7b||RM32.2b||10.9x|
Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 11.1x. It appears they believe that earnings will grow in-line with historical growth rates.
Past Earnings Growth: The earnings for companies in the Financials industry have declined 7.5% per year over the last three years, while revenues have remained mostly flat. This means that although sales have remained flat, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Which industries have driven the changes within the Malaysian Financials sector?
Industry PE: Investors are most optimistic about the Insurance industry, which is trading close to its 3-year average PE ratio of 11.8x. However analysts are expecting annual earnings growth of 6.2%, which is lower than the prior year's growth of 9.5% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Diversified Financial industry, which is trading below its 3-year average of 33.1x.
Forecasted Growth: Analysts are most optimistic on the Banks industry, expecting annual earnings growth of 12% over the next 5 years. This is better than it's past earnings growth rate of 8.6% per year. Meanwhile, the Capital Markets industry is expected to see its earnings decline by 14% per year over the next few years.
Which companies have driven the market over the last 7 days?
Alliance Bank Malaysia Berhad
Malaysia Building Society Berhad
RHB Bank Berhad
CIMB Group Holdings Berhad
Hong Leong Bank Berhad
Public Bank Berhad
Hong Leong Financial Group Berhad
Bank Islam Malaysia Berhad
ELK-Desa Resources Berhad
AMMB Holdings Berhad
Malayan Banking Berhad
Syarikat Takaful Malaysia Keluarga Berhad
AFFIN Bank Berhad
AEON Credit Service (M) Berhad
Fintec Global Berhad