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Chinese (SSE) Telecom Sector Analysis

UpdatedNov 27, 2021
DataAggregated Company Financials
Companies136
  • 7D-2.0%
  • 3M6.6%
  • 1Y-16.9%
  • YTD-14.8%

Over the last 7 days, the Telecom industry has dropped 1.9%, driven by a decline by Wuhu 37 Interactive Entertainment Network Technology GroupLtd of 8.6%. Meanwhile, Inmyshow Digital Technology (Group) actually outperformed within the industry, gaining 14% in the last week. However, the industry is down 15% over the past year.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPE
Sat, 27 Nov 2021CN¥1.5tCN¥819.5bCN¥32.3b34.2x
Mon, 25 Oct 2021CN¥1.4tCN¥807.0bCN¥35.8b29.6x
Wed, 22 Sep 2021CN¥1.5tCN¥803.6bCN¥35.6b28.7x
Fri, 20 Aug 2021CN¥1.4tCN¥804.2bCN¥35.7b27.9x
Fri, 04 Jun 2021CN¥1.6tCN¥768.8bCN¥28.6b32.1x
Mon, 08 Mar 2021CN¥1.6tCN¥737.6bCN¥23.6b36x
Thu, 10 Dec 2020CN¥1.7tCN¥729.1bCN¥4.0b35.3x
Wed, 02 Sep 2020CN¥2.0tCN¥730.8bCN¥560.4m49.8x
Sat, 06 Jun 2020CN¥1.6tCN¥728.2b-CN¥605,071,825.0042.6x
Tue, 10 Mar 2020CN¥1.7tCN¥738.3bCN¥2.2b44.7x
Mon, 02 Dec 2019CN¥1.4tCN¥724.0b-CN¥4,299,063,043.0032.6x
Thu, 05 Sep 2019CN¥1.4tCN¥721.2b-CN¥4,703,473,863.0033.8x
Sun, 09 Jun 2019CN¥1.3tCN¥715.1b-CN¥1,426,658,964.0034.8x
Sat, 02 Mar 2019CN¥1.4tCN¥719.5bCN¥710.6m33.7x
Tue, 04 Dec 2018CN¥1.3tCN¥715.6bCN¥56.1b23.4x
PE Ratio

23.4x

Total Market Cap: CN¥1.3tTotal Earnings: CN¥56.1bTotal Revenue: CN¥715.6b0%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 35.6x. It appears they believe that earnings will grow in-line with historical growth rates.

Past Earnings Growth: The earnings for companies in the Communication Services industry have declined 17% per year over the last three years, while revenues for these companies have grown 4.6% 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 Telecom sector?

Telecom Services and Carriers2.21%
Media-1.38%
Wireless Telecom-1.45%
Interactive Media and Services-2.64%
Entertainment-2.98%

Industry PE: Investors are most optimistic about the Telecom Services and Carriers industry which is trading above its 3-year average PE ratio of 55.8x. This is likely because analysts are expecting annual earnings growth of 17%, which is higher than its past year's earnings decline of 9.7% per year. Meanwhile, investors are most pessimistic about the Media industry, which is trading below its 3-year average of 31.7x.

Forecasted Growth: Analysts are most optimistic on the Entertainment industry, expecting annual earnings growth of 30% over the next 5 years. This is better than it's past earnings growth rate of 10% per year. Meanwhile, the Wireless Telecom industry is expected to see its earnings grow by 13% per year over the next few years.

Top Stock Gainers and Losers

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

Company7D1YValuation
300364 COL Digital Publishing Group28.7%+CN¥2.0b54.6%PE149.1x
2174 YOOZOO Interactive8.8%+CN¥1.2b3.3%PS4.4x
300058 BlueFocus Intelligent Communications Group6.5%+CN¥1.1b12.1%PE27.7x
600373 Chinese Universe Publishing and Media Group6.3%+CN¥948.5m-0.2%PE7.2x
603220 China Bester Group Telecom18.9%+CN¥908.0m11.8%PE41.7x
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