Returns On Capital At HPP Holdings Berhad (KLSE:HPPHB) Paint A Concerning Picture
Mar 22
Malaysian (KLSE) Packaging Industry Analysis
UpdatedMar 24, 2023
DataAggregated Company Financials
Companies22
- 7D-1.0%
- 3M-5.1%
- 1Y-12.2%
- YTD-4.7%
In the last week, the Packaging industry is flat overall, with DS Sigma Holdings Berhad standing out by going down 28%. As for the longer term, the industry has declined 12% in the last year. Earnings are forecast to grow by 11% annually.
Industry Valuation and Performance
Has the Malaysian Packaging Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 24 Mar 2023 | RM4.7b | RM7.5b | RM534.8m | 12.2x | 8.8x | 0.6x |
| Sun, 19 Feb 2023 | RM5.2b | RM7.6b | RM466.6m | 11x | 11x | 0.7x |
| Tue, 17 Jan 2023 | RM4.9b | RM7.5b | RM457.0m | 11x | 10.8x | 0.7x |
| Thu, 15 Dec 2022 | RM4.7b | RM7.6b | RM169.8m | 10.3x | 27.7x | 0.6x |
| Sat, 12 Nov 2022 | RM4.5b | RM7.3b | RM120.5m | 11x | 37.7x | 0.6x |
| Mon, 10 Oct 2022 | RM4.4b | RM7.3b | RM120.5m | 12x | 36.8x | 0.6x |
| Wed, 07 Sep 2022 | RM4.8b | RM7.2b | RM117.3m | 14.8x | 40.8x | 0.7x |
| Fri, 05 Aug 2022 | RM4.7b | RM7.0b | RM113.5m | 13.8x | 41.4x | 0.7x |
| Sun, 03 Jul 2022 | RM4.6b | RM7.0b | RM112.7m | 10.3x | 40.7x | 0.7x |
| Tue, 31 May 2022 | RM4.8b | RM6.9b | RM105.0m | 15.1x | 45.9x | 0.7x |
| Thu, 28 Apr 2022 | RM5.0b | RM6.8b | RM136.7m | 15.4x | 36.6x | 0.7x |
| Sat, 26 Mar 2022 | RM5.1b | RM6.9b | RM147.5m | 13.1x | 34.4x | 0.7x |
| Mon, 21 Feb 2022 | RM5.4b | RM6.6b | RM409.0m | 12.3x | 13.1x | 0.8x |
| Wed, 19 Jan 2022 | RM5.5b | RM6.6b | RM411.3m | 12.5x | 13.3x | 0.8x |
| Fri, 17 Dec 2021 | RM5.6b | RM6.6b | RM411.3m | 12.3x | 13.6x | 0.8x |
| Sun, 14 Nov 2021 | RM5.9b | RM6.6b | RM471.6m | 14.1x | 12.6x | 0.9x |
| Tue, 12 Oct 2021 | RM5.9b | RM6.6b | RM474.4m | 12.6x | 12.4x | 0.9x |
| Thu, 09 Sep 2021 | RM5.9b | RM6.6b | RM479.8m | 13.9x | 12.3x | 0.9x |
| Sat, 07 Aug 2021 | RM5.4b | RM6.6b | RM479.9m | 12.4x | 11.3x | 0.8x |
| Fri, 30 Apr 2021 | RM5.5b | RM6.2b | RM438.6m | 12.8x | 12.6x | 0.9x |
| Mon, 01 Feb 2021 | RM5.6b | RM5.8b | RM350.2m | 14.2x | 15.9x | 1x |
| Thu, 05 Nov 2020 | RM5.0b | RM5.7b | RM289.2m | 15x | 17.1x | 0.9x |
| Sun, 09 Aug 2020 | RM4.7b | RM5.8b | RM243.2m | 17.2x | 19.3x | 0.8x |
| Sat, 02 May 2020 | RM3.4b | RM5.8b | RM171.6m | 11.7x | 19.8x | 0.6x |
Price to Earnings Ratio
18.1x
Current Industry PE
- Investors are pessimistic on the Malaysian Packaging industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 8.9x which is lower than its 3-year average PE of 21.3x.
- The industry is trading close to its 3-year average PS ratio of 0.77x.
Past Earnings Growth
- The earnings for companies in the Packaging industry have grown 50% per year over the last three years.
- Revenues for these companies have grown 9.1% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the Malaysian Materials industry?
| MY Market | 1.40% | |
| Materials | -1.05% | |
| Packaging | -0.98% | |
| Metal and Glass Containers | -0.16% | |
| Paper Packaging | -1.23% | |
Industry PE
- Investors are most optimistic about the Metal and Glass Containers industry even though it's trading below its 3-year average PE ratio of 2kx.
- Analysts are expecting annual earnings growth of 10.8%, which is higher than its past year's earnings decline of 24.1% per year.
- Investors are most pessimistic about the Paper Packaging industry, which is trading below its 3-year average of 24.6x.
Forecasted Growth
- Analysts are most optimistic on the Paper Packaging industry, expecting annual earnings growth of 12% over the next 5 years.
- This is better than its past earnings growth rate of 8.2% per year.
- In contrast, the Metal and Glass Containers 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 | |
|---|---|---|---|---|---|
| TGUAN Thong Guan Industries Berhad | RM2.32 | 3.1% +RM29.0m | -2.9% | PE9x | |
| BPPLAS BP Plastics Holding Bhd | RM1.19 | 1.7% +RM5.6m | -19.0% | PE11x | |
| GESHEN GE-Shen Corporation Berhad | RM1.48 | 3.5% +RM5.5m | 24.4% | PE16.3x | |
| ADVPKG Advanced Packaging Technology (M) Bhd | RM0.73 | 5.8% +RM3.2m | 19.2% | PS2x | |
| PPHB Public Packages Holdings Berhad | RM0.70 | 1.4% +RM2.7m | 32.5% | PE4.9x |
