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Chinese (SSE) Software Industry Analysis

UpdatedDec 02, 2021
DataAggregated Company Financials
Companies116
  • 7D2.4%
  • 3M6.0%
  • 1Y-2.5%
  • YTD-6.9%

Over the last 7 days, the Software industry has risen 1.3%, driven by gains from Sangfor Technologies of 7.6%. However, the industry is down 3.4% over the past year.

Industry Valuation and Performance

Has the Chinese Software Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPE
Thu, 02 Dec 2021CN¥1.9tCN¥270.6bCN¥14.5b53.7x
Sat, 30 Oct 2021CN¥1.7tCN¥264.1bCN¥14.9b47.3x
Mon, 27 Sep 2021CN¥1.7tCN¥262.6bCN¥15.6b49.5x
Wed, 25 Aug 2021CN¥1.8tCN¥262.7bCN¥15.6b54.8x
Thu, 01 Jul 2021CN¥1.9tCN¥262.0bCN¥15.5b52x
Sun, 04 Apr 2021CN¥1.7tCN¥250.7bCN¥17.2b45.5x
Wed, 06 Jan 2021CN¥1.9tCN¥241.8bCN¥14.1b56.4x
Sat, 10 Oct 2020CN¥1.8tCN¥233.2bCN¥11.1b68.3x
Fri, 03 Jul 2020CN¥1.8tCN¥227.4bCN¥11.8b73.7x
Mon, 06 Apr 2020CN¥1.4tCN¥224.3bCN¥13.6b69.3x
Thu, 09 Jan 2020CN¥1.3tCN¥230.3bCN¥18.0b60.6x
Wed, 02 Oct 2019CN¥1.2tCN¥205.7bCN¥22.2b57.1x
Sat, 06 Jul 2019CN¥1.0tCN¥193.6bCN¥21.7b51.7x
Tue, 09 Apr 2019CN¥1.1tCN¥193.2bCN¥19.0b61.6x
Mon, 31 Dec 2018CN¥786.5bCN¥186.7bCN¥17.7b41.5x
PE Ratio

39.5x

Total Market Cap: CN¥827.8bTotal Earnings: CN¥21.0bTotal Revenue: CN¥184.7b0%0%0%3 Year10 Year
201920202021

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 58.1x. It appears they believe that earnings will grow in-line with historical growth rates.

Past Earnings Growth: The earnings for companies in the Software industry have declined 12% per year over the last three years, while revenues for these companies have grown 14% per year. This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.

Industry Trends

Which industries have driven the changes within the Chinese Software industry?

Systems Software4.47%
Application Software1.63%

Industry PE: Investors are most optimistic about the Application Software industry even though it's trading below its 3-year average PE ratio of 61.2x. This is likely because analysts are expecting annual earnings growth of 29%, which is higher than its past year's earnings growth of 16% per year. Meanwhile, investors are most pessimistic about the Systems Software industry, which is trading close to its 3-year average of 54.8x.

Forecasted Growth: Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 42% over the next 5 years. This is better than it's past earnings growth rate of 17% per year. Meanwhile, the Application Software industry is expected to see its earnings grow by 29% per year over the next few years.

Top Stock Gainers and Losers

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

Company7D1YValuation
300454 Sangfor Technologies7.6%+CN¥6.0b0.04%PE140.3x
600588 Yonyou Network TechnologyLtd4.3%+CN¥4.4b-25.1%PE94.8x
300682 Longshine Technology GroupLtd9.8%+CN¥3.7b161.5%PE54.7x
688083 ZwsoftLtd11.5%+CN¥2.4bn/aPE152.8x
600271 Aisino8.4%+CN¥1.9b-6.1%PE17.7x
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