Is Xiaomi (HKG:1810) A Risky Investment?
Oct 16
Hong Kong (HSI) Market Analysis & Valuation
UpdatedOct 30, 2023
DataAggregated Company Financials
Companies2368
- 7D0.9%
- 3M-11.6%
- 1Y11.5%
- YTD-12.6%
The Healthcare sector gained 5.6% while the market remained flat over the last week. Meanwhile, the market is actually up 11% over the past year. Looking forward, earnings are forecast to grow by 14% annually.
Market Valuation and Performance
Has the Hong Kong Market valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 31 Oct 2023 | HK$38.4t | HK$45.1t | HK$3.5t | 9x | 11.1x | 0.9x |
| Thu, 28 Sep 2023 | HK$39.2t | HK$44.9t | HK$3.4t | 9.1x | 11.5x | 0.9x |
| Sat, 26 Aug 2023 | HK$39.6t | HK$45.4t | HK$3.6t | 9.4x | 11x | 0.9x |
| Mon, 24 Jul 2023 | HK$41.3t | HK$45.9t | HK$3.7t | 9.5x | 11.2x | 0.9x |
| Wed, 21 Jun 2023 | HK$42.3t | HK$46.0t | HK$3.7t | 9.7x | 11.5x | 0.9x |
| Fri, 19 May 2023 | HK$44.0t | HK$46.8t | HK$3.7t | 9.7x | 11.8x | 0.9x |
| Sun, 16 Apr 2023 | HK$44.8t | HK$47.7t | HK$3.8t | 9.9x | 11.7x | 0.9x |
| Tue, 14 Mar 2023 | HK$43.2t | HK$47.6t | HK$4.1t | 8.8x | 10.4x | 0.9x |
| Thu, 09 Feb 2023 | HK$44.4t | HK$49.6t | HK$4.4t | 9x | 10.1x | 0.9x |
| Sat, 07 Jan 2023 | HK$43.5t | HK$47.6t | HK$4.2t | 8.9x | 10.3x | 0.9x |
| Mon, 05 Dec 2022 | HK$40.1t | HK$46.4t | HK$4.1t | 8.5x | 9.7x | 0.9x |
| Wed, 02 Nov 2022 | HK$34.5t | HK$45.2t | HK$4.0t | 7.9x | 8.6x | 0.8x |
| Fri, 30 Sep 2022 | HK$37.2t | HK$45.2t | HK$4.0t | 8.4x | 9.3x | 0.8x |
| Sun, 28 Aug 2022 | HK$41.5t | HK$46.9t | HK$4.2t | 8.9x | 9.8x | 0.9x |
| Tue, 26 Jul 2022 | HK$42.9t | HK$46.8t | HK$4.3t | 8.9x | 9.9x | 0.9x |
| Thu, 23 Jun 2022 | HK$44.4t | HK$47.2t | HK$4.4t | 9x | 10.2x | 0.9x |
| Sat, 21 May 2022 | HK$43.9t | HK$47.1t | HK$4.3t | 8.8x | 10.2x | 0.9x |
| Mon, 18 Apr 2022 | HK$46.1t | HK$48.1t | HK$4.5t | 9.2x | 10.4x | 1x |
| Wed, 16 Mar 2022 | HK$40.1t | HK$46.6t | HK$4.6t | 7.6x | 8.8x | 0.9x |
| Fri, 11 Feb 2022 | HK$51.1t | HK$46.2t | HK$4.4t | 9.1x | 11.5x | 1.1x |
| Sun, 09 Jan 2022 | HK$49.0t | HK$46.1t | HK$4.4t | 9x | 11.1x | 1.1x |
| Tue, 07 Dec 2021 | HK$48.8t | HK$46.1t | HK$4.4t | 8.9x | 11x | 1.1x |
| Thu, 04 Nov 2021 | HK$50.1t | HK$45.7t | HK$4.4t | 9.3x | 11.4x | 1.1x |
| Sat, 02 Oct 2021 | HK$50.8t | HK$44.4t | HK$4.4t | 9.7x | 11.7x | 1.1x |
| Mon, 30 Aug 2021 | HK$51.8t | HK$44.2t | HK$4.3t | 10.5x | 12x | 1.2x |
| Tue, 06 Jul 2021 | HK$57.1t | HK$44.2t | HK$4.3t | 10.6x | 13.2x | 1.3x |
| Fri, 09 Apr 2021 | HK$56.0t | HK$41.4t | HK$3.8t | 11x | 14.6x | 1.4x |
| Thu, 31 Dec 2020 | HK$52.1t | HK$39.4t | HK$3.5t | 11.3x | 14.7x | 1.3x |
Price to Earnings Ratio
14.4x
Current Market PE
- Investors are relatively neutral on the Hong Kong market at the moment, indicating that they expect earnings will grow in line with historical growth rates.
- The market is trading close to its 3-year average PE ratio of 11.8x.
Past Earnings Growth
- The earnings for Hong Kong listed companies have grown 2.5% per year over the last three years.
- Revenues for these companies have grown 6.2% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Sector Trends
Which sectors have driven the changes within the Hong Kong Market?
| HK Market | 0.88% | |
| Healthcare | 5.60% | |
| Materials | 3.21% | |
| Industrials | 2.98% | |
| Consumer Staples | 2.93% | |
| Utilities | 2.91% | |
| Consumer Discretionary | 1.26% | |
| Tech | 1.16% | |
| Financials | 0.54% | |
| Real Estate | 0.48% | |
| Telecom | -1.26% | |
| Energy | -1.37% | |
Sector PE
- Investors favour the Healthcare sector the most for future growth even though it's trading below its 3-year average PE ratio of 2kx.
- The market's confidence is likely because analysts are expecting annual earnings growth of 26.4%, which is higher than its past year's earnings growth of 13.6% per year.
Forecasted Growth
- Analysts are most optimistic on the Materials sector, expecting annual earnings growth of 34% over the next 5 years.
- This is better than its past earnings decline of 23% per year.
- In contrast, the Energy industry is expected to see its earnings growth to stay flat 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 | Sector | |
|---|---|---|---|---|---|---|
| 700 Tencent Holdings | HK$295.40 | 2.2% +HK$60.1b | 43.7% | PE13.1x | Telecom | |
| 3690 Meituan | HK$114.00 | 5.8% +HK$38.7b | -8.7% | PE81.4x | Consumer Discretionary | |
| 1810 Xiaomi | HK$14.32 | 7.7% +HK$25.5b | 62.5% | PE35x | Tech | |
| 981 Semiconductor Manufacturing International | HK$24.15 | 14.7% +HK$24.6b | 47.3% | PE16.5x | Tech | |
| 9633 Nongfu Spring | HK$44.85 | 4.7% +HK$22.5b | 13.7% | PE48.8x | Consumer Staples |
Market Insights
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