We Think Vietnam Manufacturing and Export Processing (Holdings)'s (HKG:422) Solid Earnings Are Understated
May 07
Hong Kong (HSI) Auto Industry Analysis
UpdatedMay 19, 2024
DataAggregated Company Financials
Companies13
- 7D3.2%
- 3M24.1%
- 1Y-0.6%
- YTD12.2%
In the last week, the Auto industry is up 3.2%, with Great Wall Motor up 20%. Despite this gain, the industry's performance has been flat over the past year. As for the next few years, earnings are expected to grow by 16% per annum.
Industry Valuation and Performance
Has the Hong Kong Auto Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 19 May 2024 | HK$1.2t | HK$1.6t | HK$58.9b | 13.8x | 21.1x | 0.8x |
| Tue, 16 Apr 2024 | HK$1.2t | HK$1.6t | HK$56.0b | 14.6x | 21x | 0.8x |
| Thu, 14 Mar 2024 | HK$1.1t | HK$1.5t | HK$67.0b | 12.9x | 17.1x | 0.8x |
| Sat, 10 Feb 2024 | HK$1.0t | HK$1.5t | HK$66.9b | 11.1x | 15.3x | 0.7x |
| Mon, 08 Jan 2024 | HK$1.1t | HK$1.5t | HK$65.3b | 14.2x | 17x | 0.7x |
| Wed, 06 Dec 2023 | HK$1.2t | HK$1.5t | HK$65.3b | 14.9x | 17.7x | 0.8x |
| Fri, 03 Nov 2023 | HK$1.3t | HK$1.5t | HK$63.7b | 15.8x | 19.7x | 0.9x |
| Sun, 01 Oct 2023 | HK$1.3t | HK$1.4t | HK$58.4b | 16.6x | 21.4x | 0.9x |
| Tue, 29 Aug 2023 | HK$1.2t | HK$1.3t | HK$60.6b | 10.8x | 20.3x | 0.9x |
| Thu, 27 Jul 2023 | HK$1.4t | HK$1.3t | HK$62.1b | 10.8x | 22.2x | 1.1x |
| Sat, 24 Jun 2023 | HK$1.3t | HK$1.3t | HK$61.8b | 9.9x | 21.8x | 1x |
| Mon, 22 May 2023 | HK$1.4t | HK$1.3t | HK$63.1b | 10.4x | 21.4x | 1x |
| Wed, 19 Apr 2023 | HK$1.4t | HK$1.3t | HK$64.4b | 7.5x | 21.5x | 1.1x |
| Fri, 17 Mar 2023 | HK$1.3t | HK$1.2t | HK$53.2b | 7.6x | 23.7x | 1.1x |
| Sun, 12 Feb 2023 | HK$1.5t | HK$1.2t | HK$53.9b | 9.4x | 27.8x | 1.3x |
| Tue, 10 Jan 2023 | HK$1.4t | HK$1.2t | HK$55.7b | 7.8x | 24.9x | 1.2x |
| Thu, 08 Dec 2022 | HK$1.4t | HK$1.1t | HK$53.8b | 8.5x | 26.3x | 1.2x |
| Sat, 05 Nov 2022 | HK$1.3t | HK$1.1t | HK$52.6b | 7.8x | 25.6x | 1.2x |
| Mon, 03 Oct 2022 | HK$1.3t | HK$1.0t | HK$40.3b | 9.5x | 31.7x | 1.3x |
| Wed, 31 Aug 2022 | HK$1.6t | HK$6.7t | HK$46.1b | 13.4x | 35.1x | 0.2x |
| Fri, 29 Jul 2022 | HK$1.7t | HK$1.0t | HK$45.7b | 11.6x | 37.3x | 1.7x |
| Sun, 26 Jun 2022 | HK$1.9t | HK$1.0t | HK$45.8b | 14.3x | 41.5x | 1.8x |
| Tue, 24 May 2022 | HK$1.6t | HK$1.0t | HK$45.8b | 11.6x | 34.9x | 1.5x |
| Thu, 21 Apr 2022 | HK$1.4t | HK$1.0t | HK$46.7b | 11x | 29.7x | 1.3x |
| Sat, 19 Mar 2022 | HK$1.4t | HK$1.0t | HK$51.9b | 10.5x | 26.2x | 1.3x |
| Mon, 14 Feb 2022 | HK$1.6t | HK$1.0t | HK$51.7b | 15.1x | 30.2x | 1.5x |
| Wed, 12 Jan 2022 | HK$1.7t | HK$1.0t | HK$51.5b | 16.9x | 32.5x | 1.6x |
| Fri, 10 Dec 2021 | HK$2.1t | HK$1.0t | HK$51.7b | 20.3x | 39.9x | 2x |
| Sun, 07 Nov 2021 | HK$2.2t | HK$1.0t | HK$51.2b | 19.2x | 42.2x | 2.1x |
| Tue, 05 Oct 2021 | HK$1.8t | HK$1.0t | HK$54.6b | 18x | 32.4x | 1.8x |
| Thu, 02 Sep 2021 | HK$2.1t | HK$1.0t | HK$62.6b | 20.7x | 33.3x | 2.1x |
| Sat, 31 Jul 2021 | HK$1.9t | HK$1.0t | HK$62.6b | 14.9x | 31.1x | 1.9x |
Price to Earnings Ratio
23.8x
Current Industry PE
- Investors are pessimistic on the Hong Kong Auto 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 21.1x which is lower than its 3-year average PE of 26.8x.
- The 3-year average PS ratio of 1.3x is higher than the industry's current PS ratio of 0.79x.
Past Earnings Growth
- The earnings for companies in the Auto industry have remained mostly flat over the last three years.
- Meanwhile revenues for these companies have grown 18% 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 and as a result, profits have held steady.
Industry Trends
Which industries have driven the changes within the Hong Kong Consumer Discretionary industry?
| HK Market | 2.56% | |
| Consumer Discretionary | 2.09% | |
| Auto | 3.17% | |
| Automobile Manufacturers | 3.35% | |
| Motorcycle Manufacturers | -1.05% | |
Industry PE
- Investors are most optimistic about the Automobile Manufacturers industry even though it's trading below its 3-year average PE ratio of 27.0x.
- Analysts are expecting annual earnings growth of 16.0%, which is higher than its past year's earnings growth of 4.5% per year.
- Investors are most pessimistic about the Motorcycle Manufacturers industry, which is trading below its 3-year average of 23.5x.
Forecasted Growth
- Analysts are most optimistic on the Motorcycle Manufacturers industry, expecting annual earnings growth of 17% over the next 5 years.
- However this is lower than its past earnings growth rate of 23% per year.
- In contrast, the Automobile Manufacturers industry is expected to see its earnings grow by 16% 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 | |
|---|---|---|---|---|---|
| 2333 Great Wall Motor | HK$14.94 | 19.5% +HK$20.7b | 61.3% | PE11.7x | |
| 175 Geely Automobile Holdings | HK$10.22 | 3.3% +HK$3.3b | 8.5% | PE18.4x | |
| 9863 Zhejiang Leapmotor Technology | HK$31.30 | 2.1% +HK$869.0m | -19.3% | PS2.3x | |
| 2238 Guangzhou Automobile Group | HK$3.42 | 2.1% +HK$734.1m | -27.8% | PE8.1x | |
| 1958 BAIC Motor | HK$2.35 | 2.6% +HK$480.9m | 10.8% | PE6.7x |
