Be Wary Of Tianshan Aluminum GroupLtd (SZSE:002532) And Its Returns On Capital
May 29
Chinese (SSE) Materials Sector Analysis
UpdatedMay 30, 2024
DataAggregated Company Financials
Companies800
- 7D-2.0%
- 3M6.2%
- 1Y-8.8%
- YTD-1.5%
In the last week, the Materials industry is down 3.0% with Hengli PetrochemicalLtd down the most at 4.4%. On the other hand Hunan Gold is actually up 19%. However, the industry is down 10% over the past year. Looking forward, earnings are forecast to grow by 29% annually.
Sector Valuation and Performance
Has the Chinese Materials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 30 May 2024 | CN¥8.0t | CN¥8.4t | CN¥269.7b | 31.3x | 29.8x | 1x |
| Sat, 27 Apr 2024 | CN¥7.9t | CN¥8.4t | CN¥301.4b | 29.4x | 26.3x | 0.9x |
| Mon, 25 Mar 2024 | CN¥7.8t | CN¥8.4t | CN¥315.6b | 29.7x | 24.6x | 0.9x |
| Wed, 21 Feb 2024 | CN¥7.2t | CN¥8.4t | CN¥309.4b | 25.8x | 23.2x | 0.9x |
| Fri, 19 Jan 2024 | CN¥7.5t | CN¥8.4t | CN¥303.9b | 31x | 24.8x | 0.9x |
| Sun, 17 Dec 2023 | CN¥7.9t | CN¥8.3t | CN¥300.5b | 33.7x | 26.4x | 1x |
| Tue, 14 Nov 2023 | CN¥8.3t | CN¥8.3t | CN¥300.1b | 34.7x | 27.6x | 1x |
| Thu, 12 Oct 2023 | CN¥8.3t | CN¥8.3t | CN¥312.7b | 32.7x | 26.6x | 1x |
| Sat, 09 Sep 2023 | CN¥8.6t | CN¥8.3t | CN¥314.2b | 33.5x | 27.5x | 1x |
| Mon, 07 Aug 2023 | CN¥9.0t | CN¥8.5t | CN¥398.4b | 30x | 22.7x | 1.1x |
| Wed, 05 Jul 2023 | CN¥8.8t | CN¥8.5t | CN¥399.3b | 30.5x | 22.1x | 1x |
| Fri, 02 Jun 2023 | CN¥8.7t | CN¥8.5t | CN¥398.6b | 29.3x | 21.7x | 1x |
| Sun, 30 Apr 2023 | CN¥9.1t | CN¥8.5t | CN¥421.2b | 29.4x | 21.6x | 1.1x |
| Tue, 28 Mar 2023 | CN¥9.6t | CN¥8.5t | CN¥511.9b | 29.1x | 18.8x | 1.1x |
| Thu, 23 Feb 2023 | CN¥10.2t | CN¥8.4t | CN¥509.1b | 30.5x | 20.1x | 1.2x |
| Sat, 21 Jan 2023 | CN¥10.0t | CN¥8.4t | CN¥513.5b | 29.1x | 19.4x | 1.2x |
| Mon, 19 Dec 2022 | CN¥9.6t | CN¥8.4t | CN¥513.2b | 27.8x | 18.8x | 1.1x |
| Wed, 16 Nov 2022 | CN¥9.9t | CN¥8.4t | CN¥512.5b | 28.9x | 19.3x | 1.2x |
| Fri, 14 Oct 2022 | CN¥9.4t | CN¥8.4t | CN¥572.9b | 25.8x | 16.5x | 1.1x |
| Sun, 11 Sep 2022 | CN¥10.6t | CN¥8.4t | CN¥571.5b | 28.6x | 18.5x | 1.3x |
| Tue, 09 Aug 2022 | CN¥10.7t | CN¥8.1t | CN¥578.0b | 28.9x | 18.6x | 1.3x |
| Thu, 07 Jul 2022 | CN¥10.9t | CN¥8.1t | CN¥574.1b | 27.8x | 19x | 1.3x |
| Sat, 04 Jun 2022 | CN¥10.0t | CN¥8.1t | CN¥575.1b | 26.3x | 17.4x | 1.2x |
| Mon, 02 May 2022 | CN¥9.0t | CN¥8.0t | CN¥562.5b | 23.3x | 16.1x | 1.1x |
| Wed, 30 Mar 2022 | CN¥10.1t | CN¥7.5t | CN¥544.3b | 27.5x | 18.6x | 1.4x |
| Fri, 25 Feb 2022 | CN¥11.1t | CN¥7.1t | CN¥512.9b | 30.7x | 21.6x | 1.6x |
| Sun, 23 Jan 2022 | CN¥10.7t | CN¥7.1t | CN¥511.9b | 30.6x | 20.9x | 1.5x |
| Tue, 21 Dec 2021 | CN¥11.2t | CN¥7.1t | CN¥511.2b | 31.8x | 22x | 1.6x |
| Thu, 18 Nov 2021 | CN¥10.8t | CN¥7.1t | CN¥505.8b | 31x | 21.4x | 1.5x |
| Sat, 16 Oct 2021 | CN¥10.7t | CN¥6.6t | CN¥445.8b | 29.8x | 24.1x | 1.6x |
| Mon, 13 Sep 2021 | CN¥12.8t | CN¥6.6t | CN¥444.4b | 33.9x | 28.9x | 2x |
| Wed, 11 Aug 2021 | CN¥10.9t | CN¥6.5t | CN¥443.9b | 30.6x | 24.5x | 1.7x |
| Sun, 06 Jun 2021 | CN¥8.9t | CN¥6.0t | CN¥349.5b | 29.9x | 25.4x | 1.5x |
Price to Earnings Ratio
25.4x
Current Industry PE
- Investors are optimistic on the Chinese Materials industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 29.5x which is higher than its 3-year average PE of 22.0x.
- The 3-year average PS ratio of 1.2x is higher than the industry's current PS ratio of 0.95x.
Past Earnings Growth
- The earnings for companies in the Materials industry have declined 8.3% per year over the last three years.
- Meanwhile revenues for these companies have grown 12% 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 Chinese Materials sector?
| CN Market | -2.62% | |
| Materials | -2.04% | |
| Metals and Mining | -0.26% | |
| Chemicals | -2.55% | |
| Paper and Forestry Products | -4.79% | |
| Packaging | -4.84% | |
| Basic Materials | -6.54% | |
Industry PE
- Investors are most optimistic about the Paper and Forestry Products industry even though it's trading below its 3-year average PE ratio of 69.8x.
- Analysts are expecting annual earnings growth of 27.2%, which is higher than its past year's earnings growth of 9.7% per year.
- Investors are most pessimistic about the Metals and Mining industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 20.6x.
Forecasted Growth
- Analysts are most optimistic on the Chemicals industry, expecting annual earnings growth of 32% over the next 5 years.
- This is better than its past earnings decline of 16% per year.
- In contrast, the Metals and Mining industry is expected to see its earnings grow by 25% 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 | |
|---|---|---|---|---|---|
| 2155 Hunan Gold | CN¥21.67 | 18.5% +CN¥4.1b | 56.8% | PE53.3x | |
| 601020 Tibet Huayu Mining | CN¥17.08 | 40.0% +CN¥3.8b | 87.1% | PE139.2x | |
| 601958 Jinduicheng Molybdenum | CN¥12.30 | 7.6% +CN¥2.8b | 12.9% | PE13.7x | |
| 600301 Guangxi Huaxi Nonferrous MetalLtd | CN¥21.99 | 23.5% +CN¥2.7b | 30.1% | PE35.2x | |
| 600219 Shandong Nanshan AluminiumLtd | CN¥3.93 | 4.8% +CN¥2.1b | 30.6% | PE12.1x |
