Huabao International Holdings' (HKG:336) Returns On Capital Not Reflecting Well On The Business
Oct 30
Hong Kong (HSI) Chemicals Industry Analysis
UpdatedOct 30, 2023
DataAggregated Company Financials
Companies38
- 7D1.9%
- 3M-14.5%
- 1Y-10.1%
- YTD-23.1%
Over the last 7 days, the Chemicals industry has risen 1.9%, driven by gains from Dongyue Group of 20%. In the past year, the industry is down 10%. As for the next few years, earnings are expected to grow by 37% per annum.
Industry Valuation and Performance
Has the Hong Kong Chemicals Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 31 Oct 2023 | HK$115.6b | HK$311.4b | HK$11.0b | 5.3x | 10.5x | 0.4x |
| Thu, 28 Sep 2023 | HK$118.5b | HK$298.0b | HK$9.0b | 5.7x | 13.1x | 0.4x |
| Sat, 26 Aug 2023 | HK$123.8b | HK$308.5b | HK$12.3b | 5.6x | 10.1x | 0.4x |
| Mon, 24 Jul 2023 | HK$131.5b | HK$311.4b | HK$13.0b | 5.1x | 10.1x | 0.4x |
| Wed, 21 Jun 2023 | HK$124.1b | HK$312.0b | HK$13.1b | 4.9x | 9.5x | 0.4x |
| Fri, 19 May 2023 | HK$140.6b | HK$318.0b | HK$13.3b | 5.2x | 10.5x | 0.4x |
| Sun, 16 Apr 2023 | HK$146.9b | HK$330.4b | HK$14.1b | 5x | 10.4x | 0.4x |
| Tue, 14 Mar 2023 | HK$148.2b | HK$343.4b | HK$15.3b | 5.4x | 9.7x | 0.4x |
| Thu, 09 Feb 2023 | HK$156.1b | HK$348.1b | HK$16.0b | 5.4x | 9.8x | 0.4x |
| Sat, 07 Jan 2023 | HK$147.2b | HK$344.0b | HK$15.8b | 5x | 9.3x | 0.4x |
| Mon, 05 Dec 2022 | HK$142.8b | HK$334.9b | HK$15.3b | 5.2x | 9.3x | 0.4x |
| Wed, 02 Nov 2022 | HK$128.3b | HK$325.8b | HK$14.9b | 4.8x | 8.6x | 0.4x |
| Fri, 30 Sep 2022 | HK$131.5b | HK$343.8b | HK$17.5b | 5x | 7.5x | 0.4x |
| Sun, 28 Aug 2022 | HK$152.8b | HK$347.2b | HK$17.9b | 5.7x | 8.5x | 0.4x |
| Tue, 26 Jul 2022 | HK$153.1b | HK$334.6b | HK$16.8b | 6.4x | 9.1x | 0.5x |
| Thu, 23 Jun 2022 | HK$159.6b | HK$337.4b | HK$16.9b | 6.3x | 9.4x | 0.5x |
| Sat, 21 May 2022 | HK$160.4b | HK$336.3b | HK$16.8b | 6.4x | 9.5x | 0.5x |
| Mon, 18 Apr 2022 | HK$167.5b | HK$342.0b | HK$18.7b | 6.4x | 8.9x | 0.5x |
| Wed, 16 Mar 2022 | HK$139.6b | HK$298.1b | HK$18.7b | 6.5x | 7.4x | 0.5x |
| Fri, 11 Feb 2022 | HK$171.5b | HK$295.6b | HK$18.3b | 7.4x | 9.4x | 0.6x |
| Sun, 09 Jan 2022 | HK$209.2b | HK$295.2b | HK$18.3b | 7.7x | 11.4x | 0.7x |
| Tue, 07 Dec 2021 | HK$231.6b | HK$295.0b | HK$18.3b | 7.3x | 12.7x | 0.8x |
| Thu, 04 Nov 2021 | HK$213.6b | HK$293.6b | HK$18.2b | 7.7x | 11.7x | 0.7x |
| Sat, 02 Oct 2021 | HK$234.5b | HK$285.2b | HK$18.5b | 8.2x | 12.7x | 0.8x |
| Mon, 30 Aug 2021 | HK$247.6b | HK$284.8b | HK$18.5b | 8.6x | 13.4x | 0.9x |
| Tue, 06 Jul 2021 | HK$197.3b | HK$284.1b | HK$18.2b | 7.6x | 10.8x | 0.7x |
| Fri, 09 Apr 2021 | HK$152.0b | HK$267.3b | HK$14.7b | 8.3x | 10.4x | 0.6x |
| Thu, 31 Dec 2020 | HK$138.7b | HK$250.0b | HK$9.2b | 8.5x | 15x | 0.6x |
Price to Earnings Ratio
13.8x
Current Industry PE
- Investors are relatively neutral on the Hong Kong Chemicals industry at the moment, indicating that they anticipate long term growth rates to remain steady.
- The industry is trading close to its 3-year average PE ratio of 11.2x.
- The industry is trading close to its 3-year average PS ratio of 0.54x.
Past Earnings Growth
- The earnings for companies in the Chemicals industry have grown 11% per year over the last three years.
- Revenues for these companies have grown 8.3% 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 Hong Kong Materials industry?
| HK Market | 0.88% | |
| Materials | 3.21% | |
| Chemicals | 1.90% | |
| Specialty Chemicals | 5.88% | |
| Industrial Gases | 1.32% | |
| Commodity Chemicals | 0.57% | |
| Diversified Chemicals | 0% | |
| Fertilizers and Agricultural Chemicals | -0.27% | |
Industry PE
- Investors are most optimistic about the Specialty Chemicals industry even though it's trading below its 3-year average PE ratio of 19.1x.
- Analysts are expecting annual earnings growth of 23.9%, which is higher than its past year's earnings decline of 8.5% per year.
Forecasted Growth
- Analysts are most optimistic on the Commodity Chemicals industry, expecting annual earnings growth of 67% over the next 5 years.
- This is better than its past earnings decline of 9.4% per year.
- In contrast, the Fertilizers and Agricultural Chemicals industry is expected to see its earnings decline by 7.6% 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 | |
|---|---|---|---|---|---|
| 189 Dongyue Group | HK$6.39 | 19.7% +HK$2.4b | -6.3% | PE5.5x | |
| 336 Huabao International Holdings | HK$2.67 | 6.8% +HK$549.1m | -26.2% | PS2.3x | |
| 338 Sinopec Shanghai Petrochemical | HK$1.05 | 2.9% +HK$324.0m | 1.9% | PS0.1x | |
| 6616 Global New Material International Holdings | HK$3.82 | 4.1% +HK$185.8m | 3.5% | PE21.9x | |
| 297 Sinofert Holdings | HK$0.91 | 1.1% +HK$70.2m | 16.7% | PE5.3x |
