Why Investors Shouldn't Be Surprised By Shenzhen Sunline Tech Co., Ltd.'s (SZSE:300348) 27% Share Price Surge
Nov 14
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Chinese (SSE) IT Industry Analysis
UpdatedNov 21, 2024
DataAggregated Company Financials
Companies94
- 7D-7.0%
- 3M62.4%
- 1Y6.9%
- YTD15.3%
Over the last 7 days, the IT industry has dropped 8.8%, driven by declines in Range Intelligent Computing Technology Group and iSoftStone Information Technology (Group) of 10% and 10%, respectively. In contrast, Eastone Century TechnologyLtd has gained 16%. Over the last year, the industry has been flat overall. Looking forward, earnings are forecast to grow by 33% annually.
Industry Valuation and Performance
Has the Chinese IT Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 21 Nov 2024 | CN¥814.5b | CN¥366.1b | CN¥6.1b | 74.1x | 134.2x | 2.2x |
| Sat, 19 Oct 2024 | CN¥790.5b | CN¥359.7b | CN¥4.5b | 70.5x | 175.6x | 2.2x |
| Mon, 16 Sep 2024 | CN¥519.0b | CN¥359.3b | CN¥4.4b | 47.5x | 118.3x | 1.4x |
| Wed, 14 Aug 2024 | CN¥505.8b | CN¥349.0b | CN¥4.3b | 39.2x | 117.1x | 1.4x |
| Fri, 12 Jul 2024 | CN¥541.2b | CN¥349.1b | CN¥4.4b | 43x | 123.6x | 1.6x |
| Sun, 09 Jun 2024 | CN¥555.8b | CN¥348.9b | CN¥4.4b | 43.9x | 126.5x | 1.6x |
| Tue, 07 May 2024 | CN¥644.2b | CN¥349.1b | CN¥4.6b | 48x | 141.4x | 1.8x |
| Thu, 04 Apr 2024 | CN¥642.9b | CN¥349.5b | CN¥7.6b | 53.9x | 84.5x | 1.8x |
| Sat, 02 Mar 2024 | CN¥620.5b | CN¥340.6b | CN¥4.8b | 56.9x | 128.3x | 1.8x |
| Mon, 29 Jan 2024 | CN¥588.2b | CN¥338.8b | CN¥4.2b | 51.4x | 138.9x | 1.7x |
| Wed, 27 Dec 2023 | CN¥631.1b | CN¥337.4b | CN¥4.1b | 58.9x | 152.9x | 1.9x |
| Fri, 24 Nov 2023 | CN¥715.7b | CN¥337.1b | CN¥4.1b | 67.4x | 174.8x | 2.1x |
| Sun, 22 Oct 2023 | CN¥635.3b | CN¥338.3b | CN¥4.8b | 56.5x | 131.8x | 1.9x |
| Tue, 19 Sep 2023 | CN¥655.4b | CN¥338.2b | CN¥4.8b | 56.7x | 135.3x | 1.9x |
| Thu, 17 Aug 2023 | CN¥684.1b | CN¥338.8b | CN¥4.7b | 60.8x | 144.9x | 2x |
| Sat, 15 Jul 2023 | CN¥703.8b | CN¥338.0b | CN¥5.8b | 58.2x | 122.1x | 2.1x |
| Mon, 12 Jun 2023 | CN¥733.5b | CN¥336.2b | CN¥5.6b | 61.9x | 130.1x | 2.2x |
| Wed, 10 May 2023 | CN¥694.4b | CN¥335.2b | CN¥5.5b | 60.4x | 125.8x | 2.1x |
| Fri, 07 Apr 2023 | CN¥742.2b | CN¥335.5b | CN¥3.6b | 60.1x | 204.2x | 2.2x |
| Sun, 05 Mar 2023 | CN¥687.6b | CN¥350.4b | CN¥3.2b | 56.7x | 216.6x | 2x |
| Tue, 31 Jan 2023 | CN¥623.0b | CN¥351.2b | CN¥3.3b | 48.6x | 189.1x | 1.8x |
| Thu, 29 Dec 2022 | CN¥538.4b | CN¥351.4b | CN¥3.2b | 43.1x | 167.3x | 1.5x |
| Sat, 26 Nov 2022 | CN¥576.9b | CN¥352.2b | CN¥3.3b | 44x | 172.4x | 1.6x |
| Mon, 24 Oct 2022 | CN¥533.9b | CN¥350.6b | CN¥4.3b | 43.4x | 124.3x | 1.5x |
| Wed, 21 Sep 2022 | CN¥480.7b | CN¥349.4b | CN¥4.2b | 39.1x | 115.2x | 1.4x |
| Fri, 19 Aug 2022 | CN¥549.9b | CN¥355.3b | CN¥5.1b | 44.6x | 108.4x | 1.5x |
| Sun, 17 Jul 2022 | CN¥499.1b | CN¥352.9b | CN¥5.1b | 40.5x | 97.8x | 1.4x |
| Tue, 14 Jun 2022 | CN¥506.2b | CN¥351.5b | CN¥5.0b | 42.1x | 100.9x | 1.4x |
| Thu, 12 May 2022 | CN¥457.0b | CN¥333.7b | CN¥4.2b | 40.4x | 109x | 1.4x |
| Sat, 09 Apr 2022 | CN¥541.2b | CN¥329.1b | CN¥481.0m | 42.5x | 1125.3x | 1.6x |
| Mon, 07 Mar 2022 | CN¥620.1b | CN¥317.3b | CN¥1.8b | 48.2x | 346.1x | 2x |
| Wed, 02 Feb 2022 | CN¥580.1b | CN¥317.1b | CN¥1.9b | 45.3x | 312.5x | 1.8x |
| Fri, 31 Dec 2021 | CN¥589.3b | CN¥316.5b | CN¥1.7b | 47.4x | 352.5x | 1.9x |
| Sun, 28 Nov 2021 | CN¥574.7b | CN¥317.3b | CN¥1.7b | 49.6x | 336.1x | 1.8x |
Price to Earnings Ratio
336.1x
Current Industry PE
- Investors are pessimistic on the Chinese IT industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 130x which is lower than its 3-year average PE of 178x.
- The 3-year average PS ratio of 1.8x is lower than the industry's current PS ratio of 2.2x.
Past Earnings Growth
- The earnings for companies in the IT industry have grown 53% per year over the last three years.
- Revenues for these companies have grown 4.9% 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 industry?
| CN Market | -3.39% | |
| Tech | -6.40% | |
| IT | -6.95% | |
| Data Processing Services | -2.48% | |
| IT Consulting | -6.39% | |
| Internet Services and Infrastructure | -8.34% | |
Industry PE
- Investors are most optimistic about the Data Processing Services industry which is trading above its 3-year average PE ratio of 33.8x.
- It looks like they are confident that earnings will grow faster in the future than they have historically.
- Investors are most pessimistic about the Internet Services and Infrastructure industry, which is trading below its 3-year average of 173x.
Forecasted Growth
- Analysts are most optimistic on the IT Consulting industry, expecting annual earnings growth of 40% over the next 5 years.
- This is better than its past earnings decline of 8.1% per year.
- In contrast, the Internet Services and Infrastructure industry is expected to see its earnings grow by 23% 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 | |
|---|---|---|---|---|---|
| 300310 Eastone Century TechnologyLtd | CN¥11.16 | 23.2% +CN¥1.9b | 107.8% | PE151.6x | |
| 300168 Wonders Information | CN¥9.50 | 14.2% +CN¥1.7b | -1.0% | PS7.3x | |
| 600288 Daheng New Epoch Technology | CN¥10.64 | 21.6% +CN¥825.6m | -16.1% | PS2.4x | |
| 002184 Shanghai Hi-Tech Control System | CN¥13.22 | 20.1% +CN¥777.7m | -13.0% | PS1.7x | |
| 600410 Beijing Teamsun TechnologyLtd | CN¥6.29 | 7.9% +CN¥504.4m | -19.4% | PS1.6x |
