Hil Industries Berhad's (KLSE:HIL) Strong Earnings Are Of Good Quality
Sep 03
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Malaysian (KLSE) Chemicals Industry Analysis
UpdatedSep 07, 2024
DataAggregated Company Financials
Companies24
- 7D-3.1%
- 3M-12.6%
- 1Y-16.1%
- YTD-16.8%
Over the last 7 days, the Chemicals industry has dropped 3.1%, driven by a pullback from PETRONAS Chemicals Group Berhad of 4.0%. Meanwhile, Ancom Nylex Berhad actually outperformed within the industry, gaining 7.1% in the last week. The industry has fallen 16% in the last year. As for the next few years, earnings are expected to grow by 19% per annum.
Industry Valuation and Performance
Has the Malaysian Chemicals Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 08 Sep 2024 | RM 68.6b | RM 70.9b | RM 2.5b | 15.8x | 27.3x | 1x |
| Tue, 06 Aug 2024 | RM 66.1b | RM 69.8b | RM 2.3b | 18.5x | 28.8x | 0.9x |
| Thu, 04 Jul 2024 | RM 76.2b | RM 69.8b | RM 2.2b | 21.3x | 34.1x | 1.1x |
| Sat, 01 Jun 2024 | RM 79.2b | RM 69.8b | RM 2.2b | 20x | 35.9x | 1.1x |
| Mon, 29 Apr 2024 | RM 79.4b | RM 70.3b | RM 2.0b | 21.1x | 38.8x | 1.1x |
| Wed, 27 Mar 2024 | RM 78.7b | RM 70.1b | RM 2.0b | 18.5x | 39.2x | 1.1x |
| Fri, 23 Feb 2024 | RM 81.4b | RM 71.5b | RM 2.3b | 22.3x | 35x | 1.1x |
| Sun, 21 Jan 2024 | RM 79.4b | RM 72.8b | RM 2.3b | 22x | 34.9x | 1.1x |
| Tue, 19 Dec 2023 | RM 81.8b | RM 72.8b | RM 2.3b | 23.4x | 36.1x | 1.1x |
| Thu, 16 Nov 2023 | RM 83.1b | RM 74.2b | RM 3.9b | 17.2x | 21.3x | 1.1x |
| Sat, 14 Oct 2023 | RM 83.3b | RM 74.7b | RM 3.6b | 17.3x | 23.1x | 1.1x |
| Mon, 11 Sep 2023 | RM 81.5b | RM 74.7b | RM 3.6b | 17x | 22.6x | 1.1x |
| Wed, 09 Aug 2023 | RM 78.9b | RM 76.3b | RM 5.1b | 13.9x | 15.5x | 1x |
| Fri, 07 Jul 2023 | RM 71.5b | RM 77.4b | RM 5.3b | 13.6x | 13.5x | 0.9x |
| Sun, 04 Jun 2023 | RM 75.8b | RM 77.3b | RM 5.3b | 13.9x | 14.4x | 1x |
| Tue, 02 May 2023 | RM 80.6b | RM 77.0b | RM 7.1b | 13.2x | 11.4x | 1x |
| Thu, 30 Mar 2023 | RM 79.3b | RM 77.8b | RM 7.4b | 13.6x | 10.7x | 1x |
| Sat, 25 Feb 2023 | RM 82.8b | RM 77.9b | RM 7.5b | 13.3x | 11.1x | 1.1x |
| Mon, 23 Jan 2023 | RM 93.6b | RM 76.9b | RM 9.6b | 12.4x | 9.7x | 1.2x |
| Wed, 21 Dec 2022 | RM 89.7b | RM 76.9b | RM 9.6b | 11.8x | 9.3x | 1.2x |
| Fri, 18 Nov 2022 | RM 92.8b | RM 74.3b | RM 9.8b | 11.4x | 9.5x | 1.2x |
| Sun, 16 Oct 2022 | RM 91.1b | RM 74.0b | RM 10.2b | 12.9x | 9x | 1.2x |
| Tue, 13 Sep 2022 | RM 96.1b | RM 74.8b | RM 10.1b | 13.4x | 9.5x | 1.3x |
| Thu, 11 Aug 2022 | RM 94.7b | RM 71.8b | RM 10.2b | 11.9x | 9.3x | 1.3x |
| Sat, 09 Jul 2022 | RM 92.2b | RM 71.7b | RM 10.7b | 11.7x | 8.6x | 1.3x |
| Mon, 06 Jun 2022 | RM 107.7b | RM 70.9b | RM 10.7b | 13x | 10.1x | 1.5x |
| Wed, 04 May 2022 | RM 111.0b | RM 66.8b | RM 10.0b | 13.2x | 11.1x | 1.7x |
| Fri, 01 Apr 2022 | RM 105.1b | RM 66.3b | RM 10.4b | 12.6x | 10.1x | 1.6x |
| Sun, 27 Feb 2022 | RM 103.1b | RM 66.1b | RM 10.4b | 14.9x | 9.9x | 1.6x |
| Tue, 25 Jan 2022 | RM 99.1b | RM 59.5b | RM 8.7b | 15.2x | 11.4x | 1.7x |
| Thu, 23 Dec 2021 | RM 97.5b | RM 59.2b | RM 8.7b | 15.3x | 11.3x | 1.6x |
| Sat, 20 Nov 2021 | RM 93.8b | RM 54.7b | RM 7.0b | 15.6x | 13.5x | 1.7x |
| Mon, 18 Oct 2021 | RM 98.5b | RM 54.3b | RM 7.0b | 18.3x | 14.1x | 1.8x |
| Wed, 15 Sep 2021 | RM 92.3b | RM 55.5b | RM 7.4b | 16.7x | 12.4x | 1.7x |
Price to Earnings Ratio
12.4x
Current Industry PE
- Investors are optimistic on the Malaysian Chemicals industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 27.3x which is higher than its 3-year average PE of 18.3x.
- The 3-year average PS ratio of 1.3x is higher than the industry's current PS ratio of 0.97x.
Past Earnings Growth
- The earnings for companies in the Chemicals industry have declined 30% per year over the last three years.
- Meanwhile revenues for these companies have grown 8.5% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the Malaysian Materials industry?
| MY Market | -1.81% | |
| Materials | -2.83% | |
| Chemicals | -3.11% | |
| Diversified Chemicals | 6.08% | |
| Industrial Gases | 0% | |
| Fertilizers and Agricultural Chemicals | -1.20% | |
| Specialty Chemicals | -2.93% | |
| Commodity Chemicals | -3.37% | |
Industry PE
- Investors are most optimistic about the Fertilizers and Agricultural Chemicals industry even though it's trading below its 3-year average PE ratio of 58.5x.
- Analysts are expecting annual earnings growth of 11.1%, which is lower than the prior year's growth of 146.3% per year.
Forecasted Growth
- Analysts are most optimistic on the Specialty Chemicals industry, expecting annual earnings growth of 26% over the next 5 years.
- However this is lower than its past earnings growth rate of 49% per year.
- In contrast, the Fertilizers and Agricultural Chemicals industry is expected to see its earnings grow by 11% 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 | |
|---|---|---|---|---|---|
| ANCOMNY Ancom Nylex Berhad | RM 1.06 | 7.1% +RM 65.3m | 1.9% | PE12.1x | |
| HEXZA Hexza Corporation Berhad | RM 1.10 | 1.9% +RM 4.0m | 21.5% | PE31.4x |