Chinese (SSE) Tech Sector Analysis
- 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?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Tue, 07 Dec 2021 | CN¥13.8t | CN¥4.4t | CN¥226.7b | 49.5x |
| Thu, 04 Nov 2021 | CN¥13.1t | CN¥4.4t | CN¥226.6b | 46.3x |
| Sat, 02 Oct 2021 | CN¥12.6t | CN¥4.3t | CN¥210.5b | 44.3x |
| Mon, 30 Aug 2021 | CN¥13.5t | CN¥4.3t | CN¥210.5b | 48.9x |
| Tue, 06 Jul 2021 | CN¥12.9t | CN¥4.3t | CN¥205.1b | 46.9x |
| Fri, 09 Apr 2021 | CN¥10.7t | CN¥4.1t | CN¥194.5b | 41.9x |
| Thu, 31 Dec 2020 | CN¥11.7t | CN¥3.8t | CN¥158.8b | 53x |
| Sun, 04 Oct 2020 | CN¥11.1t | CN¥3.6t | CN¥150.0b | 57.9x |
| Wed, 08 Jul 2020 | CN¥10.3t | CN¥3.5t | CN¥136.9b | 57.9x |
| Tue, 31 Mar 2020 | CN¥8.1t | CN¥3.4t | CN¥125.9b | 54.1x |
| Fri, 03 Jan 2020 | CN¥8.0t | CN¥3.4t | CN¥133.4b | 50.7x |
| Mon, 07 Oct 2019 | CN¥7.1t | CN¥3.2t | CN¥125.2b | 46.7x |
| Sun, 30 Jun 2019 | CN¥5.9t | CN¥3.1t | CN¥114.0b | 43.8x |
| Wed, 03 Apr 2019 | CN¥6.4t | CN¥3.0t | CN¥104.8b | 48.8x |
| Sat, 05 Jan 2019 | CN¥4.6t | CN¥3.0t | CN¥97.2b | 37.9x |
37.9x
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?
| Communications | 0.33% | |
| 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?
| Company | 7D | 1Y | Valuation | |
|---|---|---|---|---|
| 603501 Will Semiconductor | 11.4%+CN¥26.4b | 36.9% | PE57.4x | |
| 2415 Hangzhou Hikvision Digital Technology | 4.3%+CN¥19.4b | 15.1% | PE29.5x | |
| 2475 Luxshare Precision Industry | 4.3%+CN¥12.1b | -21.7% | PE40.4x | |
| 2459 JA Solar Technology | 6.6%+CN¥8.7b | 177.9% | PE92.7x | |
| 300628 Yealink Network Technology | 9.8%+CN¥6.8b | 14.5% | PE50.9x |