A Piece Of The Puzzle Missing From CSSC Offshore & Marine Engineering (Group) Company Limited's (HKG:317) 31% Share Price Climb
May 13
Hong Kong (HSI) Machinery Industry Analysis
UpdatedMay 19, 2024
DataAggregated Company Financials
Companies47
- 7D-1.9%
- 3M25.3%
- 1Y20.9%
- YTD21.9%
Over the last 7 days, the Machinery industry has dropped 1.9%, driven by declines in Weichai Power and Techtronic Industries of 7.1% and 4.4%, respectively. Meanwhile, CSSC Offshore & Marine Engineering (Group) actually outperformed within the industry, gaining 14% in the last week. Over the past 12 months, the industry was up 21%. Looking forward, earnings are forecast to grow by 15% annually.
Industry Valuation and Performance
Has the Hong Kong Machinery Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 19 May 2024 | HK$689.6b | HK$648.5b | HK$39.8b | 9.8x | 17.3x | 1.1x |
| Tue, 16 Apr 2024 | HK$694.0b | HK$645.8b | HK$39.1b | 8.1x | 17.8x | 1.1x |
| Thu, 14 Mar 2024 | HK$689.9b | HK$621.3b | HK$36.7b | 9.2x | 18.8x | 1.1x |
| Sat, 10 Feb 2024 | HK$591.6b | HK$615.5b | HK$36.6b | 8.6x | 16.2x | 1x |
| Mon, 08 Jan 2024 | HK$589.7b | HK$618.7b | HK$36.8b | 8.8x | 16x | 1x |
| Wed, 06 Dec 2023 | HK$539.8b | HK$617.8b | HK$37.9b | 8.8x | 14.2x | 0.9x |
| Fri, 03 Nov 2023 | HK$524.8b | HK$607.7b | HK$37.4b | 9.2x | 14x | 0.9x |
| Sun, 01 Oct 2023 | HK$538.0b | HK$595.6b | HK$35.1b | 9.5x | 15.3x | 0.9x |
| Tue, 29 Aug 2023 | HK$534.0b | HK$568.9b | HK$32.4b | 10.6x | 16.5x | 0.9x |
| Thu, 27 Jul 2023 | HK$582.2b | HK$573.0b | HK$32.4b | 9.5x | 18x | 1x |
| Sat, 24 Jun 2023 | HK$547.2b | HK$573.1b | HK$32.5b | 10x | 16.8x | 1x |
| Mon, 22 May 2023 | HK$562.3b | HK$582.4b | HK$33.0b | 11.9x | 17x | 1x |
| Wed, 19 Apr 2023 | HK$575.2b | HK$579.6b | HK$32.0b | 13x | 18x | 1x |
| Fri, 17 Mar 2023 | HK$568.1b | HK$549.9b | HK$30.3b | 12.3x | 18.8x | 1x |
| Sun, 12 Feb 2023 | HK$614.6b | HK$562.2b | HK$31.8b | 11.7x | 19.3x | 1.1x |
| Tue, 10 Jan 2023 | HK$580.0b | HK$560.9b | HK$31.7b | 11.5x | 18.3x | 1x |
| Thu, 08 Dec 2022 | HK$561.8b | HK$546.4b | HK$31.0b | 11.9x | 18.1x | 1x |
| Sat, 05 Nov 2022 | HK$436.6b | HK$515.9b | HK$28.0b | 10.5x | 15.6x | 0.8x |
| Mon, 03 Oct 2022 | HK$415.1b | HK$520.9b | HK$28.7b | 10.9x | 14.5x | 0.8x |
| Wed, 31 Aug 2022 | HK$503.2b | HK$598.2b | HK$34.0b | 11.7x | 14.8x | 0.8x |
| Fri, 29 Jul 2022 | HK$509.7b | HK$610.2b | HK$35.8b | 11x | 14.3x | 0.8x |
| Sun, 26 Jun 2022 | HK$519.1b | HK$614.8b | HK$35.9b | 10.8x | 14.4x | 0.8x |
| Tue, 24 May 2022 | HK$545.0b | HK$649.5b | HK$38.3b | 10.3x | 14.2x | 0.8x |
| Thu, 21 Apr 2022 | HK$589.3b | HK$709.3b | HK$42.5b | 10.5x | 13.9x | 0.8x |
| Sat, 19 Mar 2022 | HK$637.1b | HK$744.0b | HK$47.5b | 10.8x | 13.4x | 0.9x |
| Mon, 14 Feb 2022 | HK$682.6b | HK$732.3b | HK$46.5b | 11.4x | 14.7x | 0.9x |
| Wed, 12 Jan 2022 | HK$732.3b | HK$730.1b | HK$46.3b | 10.9x | 15.8x | 1x |
| Fri, 10 Dec 2021 | HK$794.5b | HK$733.1b | HK$46.5b | 11.3x | 17.1x | 1.1x |
| Sun, 07 Nov 2021 | HK$713.5b | HK$723.9b | HK$45.6b | 12x | 15.6x | 1x |
| Tue, 05 Oct 2021 | HK$736.0b | HK$737.0b | HK$46.4b | 10.7x | 15.9x | 1x |
| Thu, 02 Sep 2021 | HK$854.2b | HK$734.3b | HK$46.1b | 16.2x | 18.5x | 1.2x |
| Sat, 31 Jul 2021 | HK$717.6b | HK$734.3b | HK$46.1b | 14.8x | 15.6x | 1x |
Price to Earnings Ratio
16.9x
Current Industry PE
- Investors are relatively neutral on the Hong Kong Machinery 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 16.2x.
- The 3-year average PS ratio of 0.96x is lower than the industry's current PS ratio of 1.1x.
Past Earnings Growth
- The earnings for companies in the Machinery industry have declined 2.3% 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 Industrials industry?
| HK Market | 2.56% | |
| Industrials | 2.55% | |
| Machinery | -1.95% | |
| Agricultural Machinery | -0.76% | |
| Construction Machinery and Vehicles | -1.04% | |
| Industrial Machinery | -3.04% | |
Industry PE
- Investors are most optimistic about the Industrial Machinery industry which is trading above its 3-year average PE ratio of 19.2x.
- Analysts are expecting annual earnings growth of 15.6%, which is higher than its past year's earnings decline of 12.7% per year.
- Investors are most pessimistic about the Construction Machinery and Vehicles industry, which is trading close to its 3-year average of 14.9x.
Forecasted Growth
- Analysts are most optimistic on the Agricultural Machinery industry, expecting annual earnings growth of 21% over the next 5 years.
- However this is lower than its past earnings growth rate of 62% per year.
- In contrast, the Construction Machinery and Vehicles industry is expected to see its earnings grow by 14% 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 | |
|---|---|---|---|---|---|
| 317 CSSC Offshore & Marine Engineering (Group) | HK$14.04 | 14.0% +HK$2.4b | 15.1% | PE203.9x | |
| 3898 Zhuzhou CRRC Times Electric | HK$31.90 | 5.6% +HK$2.4b | -5.9% | PE12.9x | |
| 631 Sany Heavy Equipment International Holdings | HK$6.99 | 3.4% +HK$734.3m | -36.3% | PE11.5x | |
| 3899 CIMC Enric Holdings | HK$8.09 | 2.4% +HK$385.4m | 16.9% | PE13.6x | |
| 3339 Lonking Holdings | HK$1.63 | 5.2% +HK$342.4m | 15.6% | PE10x |
