Automotive industry valuation obvious advantages with low earnings growth

Posted on 12/2/2014 3:51:46 PM

After growing market today, a slight correction, coal, steel, wine and other pre-stagflation industry performed well, showing a sector rotation significant market phenomenon. Agency expects, share momentum will continue, due to significant additional capital market, new entrants tend to have the funds or the assessment of the advantages of the shares underestimate the value of compensatory growth plate, round action continues.
According Zhengbao information statistics, 28 SW industrial sector data revealed that the only means of transportation, banking, real estate, finance and penniless architectural industry head rotor 149701-0520 five industries in November rose more than the CSI 300 index and the 23 remaining below industry the broader market. Among them, the nonbank financial month rose 33.64 percent, ranking first. Following the architectural decoration, real estate, banking and transportation, respectively, 17.5%, 15.63%, 14.45% and 13.11%.
Statistics show that, according to the Shanghai and Shenzhen 300 index rose behind magnitude less than 20 times earnings and the rolling conditions, the sequence including automotive, mining, appliances, building materials and utilities, obviously has the advantage of relative valuation.
The automotive industry valuation is only 17 times last month underperformed the index CSI 300 7 points. Two sub-sectors, the automotive industry, the price-earnings ratio lower, only 14 times, and in 2015 to less than 10 times forecast earnings. Meanwhile, forecasts that net profit institutions consensus growth 2015 net profit of 29%, indicating that the automotive industry is not only low valuation, but also to have some growth. The overall performance of passenger car market is relatively stable, global passenger car in October rose 6.4 percent, but the big difference between the different categories, SUV best performer, up 36.9 percent.

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