When Should You Buy China Gas Holdings Limited (HKG:384)?
May 10
Hong Kong (HSI) Utilities Sector Analysis
UpdatedMay 19, 2024
DataAggregated Company Financials
Companies60
- 7D2.1%
- 3M18.2%
- 1Y-0.3%
- YTD15.3%
In the last week, the Utilities industry is up 2.1%, with CGN Power leading the way with a 2.1% gain. The industry has been flat over the past 12 months despite the gain this week. As for the next few years, earnings are expected to grow by 11% per annum.
Sector Valuation and Performance
Has the Hong Kong Utilities Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 19 May 2024 | HK$1.8t | HK$1.8t | HK$125.6b | 9.5x | 14x | 1x |
| Tue, 16 Apr 2024 | HK$1.7t | HK$1.8t | HK$121.2b | 8.8x | 13.8x | 0.9x |
| Thu, 14 Mar 2024 | HK$1.7t | HK$1.8t | HK$120.7b | 9x | 13.9x | 0.9x |
| Sat, 10 Feb 2024 | HK$1.6t | HK$1.8t | HK$124.8b | 8x | 12.7x | 0.9x |
| Mon, 08 Jan 2024 | HK$1.6t | HK$1.8t | HK$125.1b | 8.2x | 12.8x | 0.9x |
| Wed, 06 Dec 2023 | HK$1.5t | HK$1.8t | HK$125.2b | 7.6x | 11.8x | 0.8x |
| Fri, 03 Nov 2023 | HK$1.5t | HK$1.8t | HK$126.0b | 7.9x | 11.8x | 0.8x |
| Sun, 01 Oct 2023 | HK$1.5t | HK$1.8t | HK$115.0b | 8.5x | 13.2x | 0.8x |
| Tue, 29 Aug 2023 | HK$1.5t | HK$1.8t | HK$112.8b | 8.7x | 13.5x | 0.8x |
| Thu, 27 Jul 2023 | HK$1.7t | HK$1.8t | HK$99.2b | 9.3x | 16.8x | 0.9x |
| Sat, 24 Jun 2023 | HK$1.6t | HK$1.8t | HK$95.0b | 9.5x | 16.9x | 0.9x |
| Mon, 22 May 2023 | HK$1.7t | HK$1.8t | HK$95.6b | 9.9x | 18.1x | 0.9x |
| Wed, 19 Apr 2023 | HK$1.7t | HK$1.9t | HK$91.5b | 9.2x | 18.4x | 0.9x |
| Fri, 17 Mar 2023 | HK$1.7t | HK$1.8t | HK$59.1b | 8.4x | 28.7x | 0.9x |
| Sun, 12 Feb 2023 | HK$1.8t | HK$1.8t | HK$59.1b | 8.8x | 29.7x | 1x |
| Tue, 10 Jan 2023 | HK$1.7t | HK$1.8t | HK$59.1b | 9.1x | 29.4x | 1x |
| Thu, 08 Dec 2022 | HK$1.6t | HK$1.8t | HK$59.2b | 8x | 26.5x | 0.9x |
| Sat, 05 Nov 2022 | HK$1.4t | HK$1.7t | HK$60.0b | 8x | 23.8x | 0.8x |
| Mon, 03 Oct 2022 | HK$1.6t | HK$1.7t | HK$54.6b | 7.8x | 28.4x | 0.9x |
| Wed, 31 Aug 2022 | HK$1.8t | HK$1.8t | HK$56.4b | 9.3x | 31.7x | 1x |
| Fri, 29 Jul 2022 | HK$1.8t | HK$1.7t | HK$73.1b | 8.7x | 24.7x | 1.1x |
| Sun, 26 Jun 2022 | HK$1.9t | HK$1.7t | HK$73.2b | 8.2x | 25.3x | 1.1x |
| Tue, 24 May 2022 | HK$1.9t | HK$1.7t | HK$75.0b | 8.3x | 25.4x | 1.1x |
| Thu, 21 Apr 2022 | HK$1.9t | HK$1.7t | HK$84.4b | 8.8x | 22.4x | 1.1x |
| Sat, 19 Mar 2022 | HK$1.9t | HK$1.6t | HK$118.2b | 8.6x | 16.5x | 1.2x |
| Mon, 14 Feb 2022 | HK$2.2t | HK$1.6t | HK$127.5b | 9.8x | 17x | 1.3x |
| Wed, 12 Jan 2022 | HK$2.1t | HK$1.6t | HK$127.4b | 9.7x | 16.8x | 1.3x |
| Fri, 10 Dec 2021 | HK$2.2t | HK$1.6t | HK$127.6b | 9.8x | 17.1x | 1.3x |
| Sun, 07 Nov 2021 | HK$2.1t | HK$1.6t | HK$128.0b | 9.4x | 16.2x | 1.3x |
| Tue, 05 Oct 2021 | HK$2.2t | HK$1.6t | HK$142.2b | 9.9x | 15.2x | 1.4x |
| Thu, 02 Sep 2021 | HK$2.2t | HK$1.6t | HK$141.0b | 10.3x | 15.4x | 1.4x |
| Sat, 31 Jul 2021 | HK$2.0t | HK$1.6t | HK$141.0b | 8.9x | 14.4x | 1.3x |
Price to Earnings Ratio
14.5x
Current Industry PE
- Investors are pessimistic on the Hong Kong Utilities 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 14.0x which is lower than its 3-year average PE of 19.0x.
- The industry is trading close to its 3-year average PS ratio of 1.0x.
Past Earnings Growth
- The earnings for companies in the Utilities industry have declined 3.1% per year over the last three years.
- Meanwhile revenues for these companies have grown 7.0% 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 Hong Kong Utilities sector?
| HK Market | 2.56% | |
| Utilities | 2.08% | |
| Water Utilities | 8.22% | |
| Other Utilities | 5.32% | |
| Renewable Energy | 2.63% | |
| Gas Utilities | 1.31% | |
| Electric Utilities | 0.93% | |
Industry PE
- Investors are most optimistic about the Electric Utilities industry, which is trading close to its 3-year average PE ratio of 18.9x.
- Analysts are expecting annual earnings growth of 7.3%, which is higher than its past year's earnings growth of 6.6% per year.
- Investors are most pessimistic about the Other Utilities industry, which is trading below its 3-year average of 3.9x.
Forecasted Growth
- Analysts are most optimistic on the Renewable Energy industry, expecting annual earnings growth of 14% over the next 5 years.
- This is better than its past earnings growth rate of 7.4% per year.
- In contrast, the Electric Utilities industry is expected to see its earnings grow by 7.3% 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 | |
|---|---|---|---|---|---|
| 1816 CGN Power | HK$2.89 | 2.1% +HK$3.0b | 38.3% | PE12.5x | |
| 916 China Longyuan Power Group | HK$6.87 | 5.4% +HK$2.9b | -18.5% | PE8.5x | |
| 1071 Huadian Power International | HK$4.58 | 5.5% +HK$2.5b | 22.1% | PE10.2x | |
| 3 Hong Kong and China Gas | HK$6.41 | 2.1% +HK$2.4b | -13.8% | PE19.7x | |
| 135 Kunlun Energy | HK$8.31 | 3.5% +HK$2.4b | 20.4% | PE11.7x |
