Is It Time To Consider Buying Goertek Inc. (SZSE:002241)?
May 11
Chinese (SSE) Tech Sector Analysis
UpdatedMay 19, 2024
DataAggregated Company Financials
Companies983
- 7D0.1%
- 3M2.2%
- 1Y-20.1%
- YTD-9.3%
The Tech is pretty flat in the last 7 days, but Foxconn Industrial Internet has stood out, gaining 7.4%. As for the longer term, the industry has declined 20% in the last year. As for the next few years, earnings are expected to grow by 35% per annum.
Sector Valuation and Performance
Has the Chinese Tech Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 19 May 2024 | CN¥11.6t | CN¥5.7t | CN¥225.2b | 47.4x | 51.6x | 2x |
| Tue, 16 Apr 2024 | CN¥11.3t | CN¥5.7t | CN¥277.5b | 44.9x | 40.6x | 2x |
| Thu, 14 Mar 2024 | CN¥12.4t | CN¥5.6t | CN¥270.3b | 50.8x | 45.8x | 2.2x |
| Sat, 10 Feb 2024 | CN¥10.5t | CN¥5.6t | CN¥268.7b | 40x | 39x | 1.9x |
| Mon, 08 Jan 2024 | CN¥12.0t | CN¥5.6t | CN¥263.5b | 54.6x | 45.7x | 2.2x |
| Wed, 06 Dec 2023 | CN¥12.7t | CN¥5.6t | CN¥263.3b | 57.1x | 48.1x | 2.3x |
| Fri, 03 Nov 2023 | CN¥12.4t | CN¥5.6t | CN¥262.9b | 53.4x | 47.3x | 2.2x |
| Sun, 01 Oct 2023 | CN¥13.0t | CN¥5.6t | CN¥275.2b | 52.9x | 47.3x | 2.3x |
| Tue, 29 Aug 2023 | CN¥12.5t | CN¥5.4t | CN¥277.4b | 49.8x | 45.1x | 2.3x |
| Thu, 27 Jul 2023 | CN¥13.8t | CN¥5.3t | CN¥281.1b | 54.6x | 49x | 2.6x |
| Sat, 24 Jun 2023 | CN¥14.8t | CN¥5.3t | CN¥279.7b | 57.8x | 52.8x | 2.8x |
| Mon, 22 May 2023 | CN¥13.8t | CN¥5.2t | CN¥278.9b | 55.3x | 49.5x | 2.6x |
| Wed, 19 Apr 2023 | CN¥14.9t | CN¥5.1t | CN¥283.8b | 54.9x | 52.4x | 2.9x |
| Fri, 17 Mar 2023 | CN¥13.1t | CN¥5.1t | CN¥296.0b | 52x | 44.4x | 2.6x |
| Sun, 12 Feb 2023 | CN¥13.2t | CN¥4.9t | CN¥268.3b | 50.7x | 49.1x | 2.7x |
| Tue, 10 Jan 2023 | CN¥12.0t | CN¥4.9t | CN¥268.0b | 45.1x | 44.7x | 2.4x |
| Thu, 08 Dec 2022 | CN¥12.1t | CN¥4.9t | CN¥266.5b | 45.8x | 45.3x | 2.5x |
| Sat, 05 Nov 2022 | CN¥12.4t | CN¥4.9t | CN¥265.8b | 46.5x | 46.5x | 2.5x |
| Mon, 03 Oct 2022 | CN¥10.8t | CN¥4.8t | CN¥277.9b | 37.6x | 38.9x | 2.3x |
| Wed, 31 Aug 2022 | CN¥12.2t | CN¥4.6t | CN¥270.6b | 43.3x | 45.1x | 2.6x |
| Fri, 29 Jul 2022 | CN¥11.9t | CN¥4.6t | CN¥272.7b | 43.4x | 43.8x | 2.6x |
| Sun, 26 Jun 2022 | CN¥11.8t | CN¥4.6t | CN¥272.3b | 42.8x | 43.4x | 2.6x |
| Tue, 24 May 2022 | CN¥10.8t | CN¥4.5t | CN¥272.3b | 39.9x | 39.8x | 2.4x |
| Thu, 21 Apr 2022 | CN¥10.6t | CN¥4.6t | CN¥247.4b | 38.1x | 42.7x | 2.3x |
| Sat, 19 Mar 2022 | CN¥12.1t | CN¥4.6t | CN¥237.2b | 43.4x | 51x | 2.7x |
| Mon, 14 Feb 2022 | CN¥12.4t | CN¥4.4t | CN¥228.9b | 45.8x | 54x | 2.8x |
| Wed, 12 Jan 2022 | CN¥13.3t | CN¥4.4t | CN¥228.8b | 49.6x | 58.1x | 3x |
| Fri, 10 Dec 2021 | CN¥14.2t | CN¥4.4t | CN¥226.6b | 49.5x | 62.5x | 3.2x |
| Sun, 07 Nov 2021 | CN¥13.3t | CN¥4.4t | CN¥226.3b | 47.5x | 58.8x | 3.1x |
| Tue, 05 Oct 2021 | CN¥12.6t | CN¥4.3t | CN¥210.6b | 44.3x | 59.7x | 2.9x |
| Thu, 02 Sep 2021 | CN¥13.1t | CN¥4.3t | CN¥210.5b | 48.1x | 62.3x | 3.1x |
| Sat, 31 Jul 2021 | CN¥13.6t | CN¥4.3t | CN¥208.4b | 48.5x | 65.3x | 3.2x |
Price to Earnings Ratio
60.3x
Current Industry PE
- Investors are relatively neutral on the Chinese Information Technology 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 49.3x.
- The 3-year average PS ratio of 2.6x is higher than the industry's current PS ratio of 2.0x.
Past Earnings Growth
- The earnings for companies in the Information Technology industry have grown 5.0% per year over the last three years.
- Revenues for these companies have grown 12% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the Chinese Tech sector?
| CN Market | 0.029% | |
| Tech | 0.10% | |
| Electronic Equipment and Components | 1.82% | |
| Communications | 0.46% | |
| Tech Hardware | -0.65% | |
| IT | -0.78% | |
| Software | -0.79% | |
| Semiconductors | -1.46% | |
Industry PE
- Investors are most optimistic about the IT industry even though it's trading below its 3-year average PE ratio of 201x.
- Analysts are expecting annual earnings growth of 35.7%, which is higher than its past year's earnings decline of 5.3% per year.
Forecasted Growth
- Analysts are most optimistic on the Software industry, expecting annual earnings growth of 46% over the next 5 years.
- This is better than its past earnings growth rate of 0.6% per year.
- In contrast, the Electronic Equipment and Components industry is expected to see its earnings grow by 28% 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 | |
|---|---|---|---|---|---|
| 601138 Foxconn Industrial Internet | CN¥25.70 | 7.4% +CN¥35.4b | 59.0% | PE23.1x | |
| 2475 Luxshare Precision Industry | CN¥31.64 | 7.3% +CN¥15.4b | 12.5% | PE19.9x | |
| 688256 Cambricon Technologies | CN¥190.83 | 12.0% +CN¥8.5b | -2.3% | PS120.4x | |
| 2415 Hangzhou Hikvision Digital Technology | CN¥33.69 | 1.6% +CN¥4.9b | -5.4% | PE22.1x | |
| 938 Unisplendour | CN¥21.96 | 7.6% +CN¥4.5b | -22.3% | PE30.2x |
