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Chinese (SSE) Tech Sector Analysis

UpdatedDec 07, 2021
DataAggregated Company Financials
Companies779
  • 7D-1.1%
  • 3M1.7%
  • 1Y7.9%
  • YTD5.9%

Over the last 7 days, the Tech industry has dropped 1.1%, driven by a pullback from LONGi Green Energy Technology of 3.9%. Meanwhile, Will Semiconductor actually outperformed within the industry, gaining 9.2% in the last week. This takes the industry's 12 month performance to a gain of 7.9%.

Sector Valuation and Performance

Has the Chinese Tech Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPE
Tue, 07 Dec 2021CN¥13.8tCN¥4.4tCN¥226.7b49.5x
Thu, 04 Nov 2021CN¥13.1tCN¥4.4tCN¥226.6b46.3x
Sat, 02 Oct 2021CN¥12.6tCN¥4.3tCN¥210.5b44.3x
Mon, 30 Aug 2021CN¥13.5tCN¥4.3tCN¥210.5b48.9x
Tue, 06 Jul 2021CN¥12.9tCN¥4.3tCN¥205.1b46.9x
Fri, 09 Apr 2021CN¥10.7tCN¥4.1tCN¥194.5b41.9x
Thu, 31 Dec 2020CN¥11.7tCN¥3.8tCN¥158.8b53x
Sun, 04 Oct 2020CN¥11.1tCN¥3.6tCN¥150.0b57.9x
Wed, 08 Jul 2020CN¥10.3tCN¥3.5tCN¥136.9b57.9x
Tue, 31 Mar 2020CN¥8.1tCN¥3.4tCN¥125.9b54.1x
Fri, 03 Jan 2020CN¥8.0tCN¥3.4tCN¥133.4b50.7x
Mon, 07 Oct 2019CN¥7.1tCN¥3.2tCN¥125.2b46.7x
Sun, 30 Jun 2019CN¥5.9tCN¥3.1tCN¥114.0b43.8x
Wed, 03 Apr 2019CN¥6.4tCN¥3.0tCN¥104.8b48.8x
Sat, 05 Jan 2019CN¥4.6tCN¥3.0tCN¥97.2b37.9x
PE Ratio

37.9x

Total Market Cap: CN¥4.6tTotal Earnings: CN¥97.2bTotal Revenue: CN¥3.0t0%0%0%3 Year10 Year
20202021

Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 49.9x. It appears they believe that earnings will grow in-line with historical growth rates.

Past Earnings Growth: The earnings for companies in the Information Technology industry have grown 33% per year over the last three years, and revenues for these companies have grown 14% 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?

Communications0.33%
Tech Hardware-0.54%
Electronic Equipment and Components-0.59%
IT-0.78%
Software-1.50%
Semiconductors-2.02%

Industry PE: Investors are most optimistic about the Semiconductors industry which is trading above its 3-year average PE ratio of 68.2x. However analysts are expecting annual earnings growth of 30%, which is lower than the prior year's growth of 66% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Electronic Equipment and Components industry, which is trading close to its 3-year average of 42.1x.

Forecasted Growth: Analysts are most optimistic on the IT industry, expecting annual earnings growth of 33% over the next 5 years. This is better than it's past earnings growth rate of 11% per year. Meanwhile, the Electronic Equipment and Components industry is expected to see its earnings grow by 25% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

Company7D1YValuation
603501 Will Semiconductor11.4%+CN¥26.4b36.9%PE57.4x
2415 Hangzhou Hikvision Digital Technology4.3%+CN¥19.4b15.1%PE29.5x
2475 Luxshare Precision Industry4.3%+CN¥12.1b-21.7%PE40.4x
2459 JA Solar Technology6.6%+CN¥8.7b177.9%PE92.7x
300628 Yealink Network Technology9.8%+CN¥6.8b14.5%PE50.9x
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-8.3%

1Y

104.4%