Is Dongfang Electric Corporation Limited (HKG:1072) Expensive For A Reason? A Look At Its Intrinsic Value
Oct 19
Hong Kong (HSI) Heavy Electrical Equipment Industry Analysis
UpdatedOct 30, 2023
DataAggregated Company Financials
Companies8
- 7D2.5%
- 3M-18.1%
- 1Y-13.9%
- YTD-28.8%
Over the last 7 days, the Heavy Electrical Equipment industry has risen 2.5%, driven by gains from Dongfang Electric of 4.2%. However, the industry is down 14% over the past year. Looking forward, earnings are forecast to grow by 52% annually.
Industry Valuation and Performance
Has the Hong Kong Heavy Electrical Equipment Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 30 Oct 2023 | HK$127.6b | HK$269.4b | HK$614.8m | 7.3x | 207.5x | 0.5x |
| Wed, 27 Sep 2023 | HK$129.1b | HK$269.7b | HK$616.4m | 8.4x | 209.4x | 0.5x |
| Fri, 25 Aug 2023 | HK$133.2b | HK$258.4b | -HK$726,099,808.00 | 37.2x | -183.5x | 0.5x |
| Sun, 23 Jul 2023 | HK$143.6b | HK$260.9b | -HK$730,027,528.00 | 42.8x | -196.7x | 0.6x |
| Tue, 20 Jun 2023 | HK$144.8b | HK$261.9b | -HK$731,578,397.00 | 44x | -197.9x | 0.6x |
| Thu, 18 May 2023 | HK$151.9b | HK$268.3b | -HK$741,965,128.00 | 47x | -204.7x | 0.6x |
| Sat, 15 Apr 2023 | HK$152.1b | HK$279.7b | -HK$1,039,398,079.00 | 48.4x | -146.4x | 0.5x |
| Mon, 13 Mar 2023 | HK$152.3b | HK$267.4b | -HK$11,262,907,443.00 | 13.8x | -13.5x | 0.6x |
| Wed, 08 Feb 2023 | HK$154.2b | HK$271.9b | -HK$11,454,518,768.00 | 14x | -13.5x | 0.6x |
| Fri, 06 Jan 2023 | HK$157.6b | HK$267.6b | -HK$11,269,327,832.00 | 14x | -14x | 0.6x |
| Sun, 04 Dec 2022 | HK$154.2b | HK$261.2b | -HK$10,996,360,905.00 | 14.2x | -14x | 0.6x |
| Tue, 01 Nov 2022 | HK$146.3b | HK$255.0b | -HK$10,734,883,745.00 | 13.7x | -13.6x | 0.6x |
| Thu, 29 Sep 2022 | HK$148.0b | HK$259.4b | -HK$9,873,662,729.00 | 16.6x | -15x | 0.6x |
| Sat, 27 Aug 2022 | HK$153.3b | HK$283.7b | -HK$16,369,016,220.00 | 14.3x | -9.4x | 0.5x |
| Mon, 25 Jul 2022 | HK$152.4b | HK$288.9b | -HK$15,679,722,313.00 | 14.1x | -9.7x | 0.5x |
| Wed, 22 Jun 2022 | HK$149.4b | HK$305.7b | -HK$16,810,559,980.00 | 14.4x | -8.9x | 0.5x |
| Fri, 20 May 2022 | HK$132.6b | HK$302.9b | -HK$16,652,227,018.00 | 13.5x | -8x | 0.4x |
| Sun, 17 Apr 2022 | HK$136.9b | HK$315.5b | -HK$16,798,011,546.00 | 9.1x | -8.2x | 0.4x |
| Tue, 15 Mar 2022 | HK$147.8b | HK$343.0b | HK$82.3m | 7.2x | 1796.1x | 0.4x |
| Thu, 10 Feb 2022 | HK$169.8b | HK$340.5b | HK$19.3m | 9.2x | 8795.3x | 0.5x |
| Sat, 08 Jan 2022 | HK$177.9b | HK$339.9b | HK$20.1m | 9.4x | 8868.5x | 0.5x |
| Mon, 06 Dec 2021 | HK$187.4b | HK$340.0b | HK$20.0m | 9.3x | 9375.2x | 0.6x |
| Wed, 03 Nov 2021 | HK$170.1b | HK$338.4b | HK$22.1m | n/a | 7709.1x | 0.5x |
| Fri, 01 Oct 2021 | HK$182.0b | HK$332.3b | HK$199.7m | 10.7x | 911.3x | 0.5x |
| Sun, 29 Aug 2021 | HK$156.3b | HK$330.9b | HK$200.8m | 10.2x | 778.2x | 0.5x |
| Mon, 05 Jul 2021 | HK$131.8b | HK$330.9b | HK$200.8m | 9.5x | 656.5x | 0.4x |
| Thu, 08 Apr 2021 | HK$164.2b | HK$317.9b | HK$8.2b | 10.3x | 19.9x | 0.5x |
| Sun, 10 Jan 2021 | HK$148.9b | HK$294.4b | HK$7.2b | 14.7x | 20.7x | 0.5x |
Price to Earnings Ratio
23.2x
Current Industry PE
- Investors are pessimistic on the Hong Kong Heavy Electrical Equipment 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 208x which is lower than its 3-year average PE of 1kx.
- The industry is trading close to its 3-year average PS ratio of 0.51x.
Past Earnings Growth
- The earnings for companies in the Heavy Electrical Equipment industry have declined 53% per year over the last three years.
- Meanwhile 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.
Industry Comparison
How does Hong Kong Heavy Electrical Equipment compare with similar industries?
| HK Market | 0.88% | |
| Industrials | 2.98% | |
| Electrical | 2.27% | |
| Heavy Electrical Equipment | 2.47% | |
| Electrical Components | 1.18% | |
Industry PEThere are no additional sub-industries under this industry.
Forecasted GrowthThere are no additional sub-industries under this industry.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| 1072 Dongfang Electric | HK$7.58 | 3.4% +HK$779.6m | -36.0% | PE7.2x | |
| 2727 Shanghai Electric Group | HK$1.72 | 3.0% +HK$779.0m | 12.4% | PS0.2x | |
| 658 China High Speed Transmission Equipment Group | HK$1.87 | 4.5% +HK$130.8m | -41.4% | PE7.3x | |
| 1133 Harbin Electric | HK$2.31 | 1.3% +HK$67.1m | -12.8% | PE36.7x | |
| 1608 VPower Group International Holdings | HK$0.44 | 1.1% +HK$33.3m | -18.5% | PS1.1x |