Optimistic Investors Push Chervon Holdings Limited (HKG:2285) Shares Up 37% But Growth Is Lacking
May 10
Hong Kong (HSI) Consumer Durables Industry Analysis
UpdatedMay 19, 2024
DataAggregated Company Financials
Companies37
- 7D2.2%
- 3M41.2%
- 1Y-15.4%
- YTD21.6%
Over the last 7 days, the Consumer Durables industry has risen 2.2%, driven by gains from Man Wah Holdings of 17%. Meanwhile, Chervon Holdings actually underperformed within the industry, shrinking 9.0% in the last week. In the past year, the industry is down 15%. Looking forward, earnings are forecast to grow by 23% annually.
Industry Valuation and Performance
Has the Hong Kong Consumer Durables Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 19 May 2024 | HK$87.0b | HK$233.4b | HK$5.7b | 7.2x | 15.3x | 0.4x |
| Tue, 16 Apr 2024 | HK$70.5b | HK$231.1b | HK$5.2b | 7.2x | 13.5x | 0.3x |
| Thu, 14 Mar 2024 | HK$68.3b | HK$204.9b | HK$7.8b | 7.7x | 8.8x | 0.3x |
| Sat, 10 Feb 2024 | HK$60.7b | HK$204.8b | HK$7.8b | 7.2x | 7.8x | 0.3x |
| Mon, 08 Jan 2024 | HK$70.0b | HK$205.1b | HK$7.8b | 7.1x | 9x | 0.3x |
| Wed, 06 Dec 2023 | HK$66.7b | HK$205.1b | HK$7.8b | 7x | 8.6x | 0.3x |
| Fri, 03 Nov 2023 | HK$67.6b | HK$204.9b | HK$7.3b | 7.4x | 9.2x | 0.3x |
| Sun, 01 Oct 2023 | HK$72.3b | HK$246.6b | HK$7.4b | 8.4x | 9.8x | 0.3x |
| Tue, 29 Aug 2023 | HK$74.5b | HK$251.4b | HK$7.7b | 8.9x | 9.7x | 0.3x |
| Thu, 27 Jul 2023 | HK$83.8b | HK$257.5b | HK$7.8b | 9.2x | 10.8x | 0.3x |
| Sat, 24 Jun 2023 | HK$102.7b | HK$258.3b | HK$7.2b | 9.5x | 14.3x | 0.4x |
| Mon, 22 May 2023 | HK$107.6b | HK$260.0b | HK$7.2b | 9.7x | 15x | 0.4x |
| Wed, 19 Apr 2023 | HK$119.0b | HK$265.1b | HK$7.6b | 9.8x | 15.7x | 0.4x |
| Fri, 17 Mar 2023 | HK$118.4b | HK$269.0b | HK$9.7b | 7.9x | 12.2x | 0.4x |
| Sun, 12 Feb 2023 | HK$136.2b | HK$275.5b | HK$10.0b | 7.6x | 13.6x | 0.5x |
| Tue, 10 Jan 2023 | HK$144.5b | HK$275.0b | HK$10.0b | 8x | 14.5x | 0.5x |
| Thu, 08 Dec 2022 | HK$125.6b | HK$271.6b | HK$9.9b | 7.7x | 12.7x | 0.5x |
| Sat, 05 Nov 2022 | HK$98.6b | HK$268.8b | HK$10.5b | 6.8x | 9.4x | 0.4x |
| Mon, 03 Oct 2022 | HK$100.1b | HK$270.1b | HK$10.8b | 7.1x | 9.3x | 0.4x |
| Wed, 31 Aug 2022 | HK$121.6b | HK$273.7b | HK$11.4b | 9.4x | 10.6x | 0.4x |
| Fri, 29 Jul 2022 | HK$129.1b | HK$276.5b | HK$13.2b | 8.2x | 9.8x | 0.5x |
| Sun, 26 Jun 2022 | HK$140.3b | HK$279.5b | HK$12.9b | 9x | 10.8x | 0.5x |
| Tue, 24 May 2022 | HK$131.1b | HK$279.4b | HK$12.9b | 8.4x | 10.1x | 0.5x |
| Thu, 21 Apr 2022 | HK$138.2b | HK$282.0b | HK$13.1b | 8.9x | 10.5x | 0.5x |
| Sat, 19 Mar 2022 | HK$149.2b | HK$275.9b | HK$14.4b | 7.6x | 10.4x | 0.5x |
| Mon, 14 Feb 2022 | HK$180.3b | HK$269.3b | HK$15.6b | 8.1x | 11.6x | 0.7x |
| Wed, 12 Jan 2022 | HK$169.6b | HK$256.8b | HK$14.7b | 8x | 11.6x | 0.7x |
| Fri, 10 Dec 2021 | HK$187.7b | HK$257.3b | HK$14.7b | 7.7x | 12.8x | 0.7x |
| Sun, 07 Nov 2021 | HK$176.5b | HK$252.5b | HK$14.4b | 7.9x | 12.3x | 0.7x |
| Tue, 05 Oct 2021 | HK$178.0b | HK$249.1b | HK$14.1b | 7.9x | 12.6x | 0.7x |
| Thu, 02 Sep 2021 | HK$202.9b | HK$250.0b | HK$11.0b | 8.2x | 18.5x | 0.8x |
| Sat, 31 Jul 2021 | HK$205.8b | HK$250.0b | HK$11.0b | 8.2x | 18.8x | 0.8x |
Price to Earnings Ratio
23.8x
Current Industry PE
- Investors are optimistic on the Hong Kong Consumer Durables industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 15.3x which is higher than its 3-year average PE of 12.3x.
- The industry is trading close to its 3-year average PS ratio of 0.50x.
Past Earnings Growth
- The earnings for companies in the Consumer Durables industry have declined 17% 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 Trends
Which industries have driven the changes within the Hong Kong Consumer Discretionary industry?
| HK Market | 2.56% | |
| Consumer Discretionary | 2.09% | |
| Consumer Durables | 2.20% | |
| Home Furnishings | 13.50% | |
| Homebuilding | 7.88% | |
| Housewares and Specialties | -0.36% | |
| Consumer Electronics | -3.60% | |
| Household Appliances | -4.39% | |
Industry PE
- Investors are most optimistic about the Household Appliances industry which is trading above its 3-year average PE ratio of 16.7x.
- Analysts are expecting annual earnings growth of 43.7%, which is higher than its past year's earnings decline of 7.1% per year.
- Investors are most pessimistic about the Housewares and Specialties industry, which is trading below its 3-year average of 3.4x.
Forecasted Growth
- Analysts are most optimistic on the Household Appliances industry, expecting annual earnings growth of 44% over the next 5 years.
- This is better than its past earnings decline of 7.1% per year.
- In contrast, the Home Furnishings industry is expected to see its earnings grow by 9.5% 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 | |
|---|---|---|---|---|---|
| 1999 Man Wah Holdings | HK$7.37 | 17.0% +HK$4.1b | 38.0% | PE12.4x | |
| 1489 GC Construction Holdings | HK$0.75 | 19.0% +HK$120.0m | 44.2% | PE25.3x | |
| 776 Imperium Technology Group | HK$4.24 | 5.7% +HK$71.5m | 0.5% | PS18.2x | |
| 1575 Morris Home Holdings | HK$0.17 | 15.1% +HK$61.5m | 12.9% | PS2.3x | |
| 1418 Sinomax Group | HK$0.14 | 15.7% +HK$33.3m | 150.0% | PE3.9x |
