There's Reason For Concern Over HAND Enterprise Solutions Co., Ltd.'s (SZSE:300170) Massive 26% Price Jump
Dec 13
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Chinese (SSE) IT Industry Analysis
UpdatedDec 21, 2024
DataAggregated Company Financials
Companies94
- 7D1.8%
- 3M63.7%
- 1Y27.4%
- YTD25.6%
In the last week, the IT industry is up 1.8%, with Range Intelligent Computing Technology Group up 19%. Meanwhile, Transportation Telecommunication & Information DevelopmentLtd.Zhejiang actually underperformed within the industry, shrinking 20% in the last week. This takes the industry's 12 month performance to a gain of 27%. 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 |
|---|---|---|---|---|---|---|
| Sun, 22 Dec 2024 | CN¥887.7b | CN¥366.1b | CN¥6.1b | 74.1x | 146.3x | 2.4x |
| Tue, 19 Nov 2024 | CN¥767.3b | CN¥366.1b | CN¥6.1b | 69.7x | 126.5x | 2.1x |
| Thu, 17 Oct 2024 | CN¥748.5b | CN¥359.7b | CN¥4.5b | 65.4x | 166.3x | 2.1x |
| Sat, 14 Sep 2024 | CN¥519.1b | CN¥359.3b | CN¥4.4b | 47.5x | 118.3x | 1.4x |
| Mon, 12 Aug 2024 | CN¥509.1b | CN¥349.0b | CN¥4.3b | 39.2x | 117.8x | 1.5x |
| Wed, 10 Jul 2024 | CN¥528.3b | CN¥349.1b | CN¥4.4b | 41.3x | 120.6x | 1.5x |
| Fri, 07 Jun 2024 | CN¥553.4b | CN¥348.9b | CN¥4.4b | 44.4x | 126x | 1.6x |
| Sun, 05 May 2024 | CN¥641.8b | CN¥349.2b | CN¥4.6b | 47.5x | 138.6x | 1.8x |
| Tue, 02 Apr 2024 | CN¥629.7b | CN¥346.1b | CN¥6.1b | 58.2x | 102.8x | 1.8x |
| Thu, 29 Feb 2024 | CN¥573.2b | CN¥340.3b | CN¥4.8b | 51.5x | 119.3x | 1.7x |
| Sat, 27 Jan 2024 | CN¥588.2b | CN¥338.8b | CN¥4.2b | 51.4x | 138.9x | 1.7x |
| Mon, 25 Dec 2023 | CN¥652.8b | CN¥337.4b | CN¥4.1b | 62.7x | 158.2x | 1.9x |
| Wed, 22 Nov 2023 | CN¥724.9b | CN¥337.1b | CN¥4.1b | 68.1x | 177x | 2.2x |
| Fri, 20 Oct 2023 | CN¥656.5b | CN¥338.2b | CN¥4.8b | 58.7x | 135.7x | 1.9x |
| Sun, 17 Sep 2023 | CN¥658.8b | CN¥338.2b | CN¥4.8b | 57.1x | 136x | 1.9x |
| Tue, 15 Aug 2023 | CN¥707.3b | CN¥338.8b | CN¥6.0b | 62x | 118.6x | 2.1x |
| Thu, 13 Jul 2023 | CN¥673.5b | CN¥338.0b | CN¥5.8b | 55.9x | 116.9x | 2x |
| Sat, 10 Jun 2023 | CN¥733.4b | CN¥336.2b | CN¥5.6b | 61.9x | 130.2x | 2.2x |
| Mon, 08 May 2023 | CN¥698.9b | CN¥334.8b | CN¥5.4b | 60.6x | 128.8x | 2.1x |
| Wed, 05 Apr 2023 | CN¥752.2b | CN¥335.5b | CN¥3.6b | 62x | 206.9x | 2.2x |
| Fri, 03 Mar 2023 | CN¥696.1b | CN¥350.4b | CN¥3.2b | 57.7x | 219.3x | 2x |
| Sun, 29 Jan 2023 | CN¥612.6b | CN¥351.2b | CN¥3.3b | 48.7x | 186x | 1.7x |
| Tue, 27 Dec 2022 | CN¥543.5b | CN¥351.4b | CN¥3.2b | 44.4x | 168.9x | 1.5x |
| Thu, 24 Nov 2022 | CN¥588.5b | CN¥352.2b | CN¥3.3b | 46.2x | 175.8x | 1.7x |
| Sat, 22 Oct 2022 | CN¥533.9b | CN¥350.5b | CN¥4.3b | 43.4x | 124.8x | 1.5x |
| Mon, 19 Sep 2022 | CN¥493.7b | CN¥349.4b | CN¥4.2b | 40.1x | 118.3x | 1.4x |
| Wed, 17 Aug 2022 | CN¥549.9b | CN¥356.0b | CN¥5.3b | 44.6x | 103x | 1.5x |
| Fri, 15 Jul 2022 | CN¥509.1b | CN¥352.9b | CN¥5.1b | 40.8x | 99.7x | 1.4x |
| Sun, 12 Jun 2022 | CN¥501.6b | CN¥351.5b | CN¥5.0b | 41.7x | 100x | 1.4x |
| Tue, 10 May 2022 | CN¥453.6b | CN¥335.3b | CN¥4.3b | 39.2x | 105.6x | 1.4x |
| Thu, 07 Apr 2022 | CN¥574.8b | CN¥329.1b | CN¥481.0m | 45.2x | 1195.2x | 1.7x |
| Sat, 05 Mar 2022 | CN¥617.5b | CN¥316.8b | CN¥1.7b | 48.2x | 355x | 1.9x |
| Mon, 31 Jan 2022 | CN¥580.1b | CN¥316.8b | CN¥1.8b | 45.3x | 325.6x | 1.8x |
| Wed, 29 Dec 2021 | CN¥582.0b | CN¥316.5b | CN¥1.7b | 47.2x | 348.1x | 1.8x |
Price to Earnings Ratio
348.1x
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 146x which is lower than its 3-year average PE of 172x.
- The 3-year average PS ratio of 1.8x is lower than the industry's current PS ratio of 2.4x.
Past Earnings Growth
- The earnings for companies in the IT industry have grown 54% per year over the last three years.
- Revenues for these companies have grown 5.0% 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 | -1.18% | |
| Tech | 1.97% | |
| IT | 1.82% | |
| Internet Services and Infrastructure | 8.49% | |
| IT Consulting | -1.00% | |
| Data Processing Services | -8.90% | |
Industry PE
- Investors are most optimistic about the Data Processing Services industry which is trading above its 3-year average PE ratio of 65.9x.
- 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 172x.
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 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 | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| 300442 Range Intelligent Computing Technology Group | CN¥57.20 | 18.9% +CN¥15.6b | 133.0% | PE45.7x | |
| 300170 HAND Enterprise Solutions | CN¥15.71 | 19.2% +CN¥2.5b | 93.2% | PE219x | |
| 300348 Shenzhen Sunline Tech | CN¥18.35 | 13.3% +CN¥1.7b | 83.3% | PE430.2x | |
| 300017 Wangsu Science & TechnologyLtd | CN¥10.74 | 6.9% +CN¥1.7b | 47.9% | PE42.2x | |
| 300383 Beijing Sinnet TechnologyLtd | CN¥13.28 | 7.0% +CN¥1.6b | 39.3% | PE60.5x |
