GCL Technology Holdings Limited's (HKG:3800) Intrinsic Value Is Potentially 43% Above Its Share Price
Nov 26
Hong Kong (HSI) Tech Sector Analysis
UpdatedNov 29, 2022
DataAggregated Company Financials
Companies209
- 7D-4.8%
- 3M-11.7%
- 1Y-39.0%
- YTD-42.0%
Over the last 7 days, the Tech industry has dropped 4.8%, driven by a pullback from Xiaomi of 6.8%. However, the industry is down 39% over the past year. Earnings are forecast to grow by 24% annually.
Sector Valuation and Performance
Has the Hong Kong Tech Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 29 Nov 2022 | HK$1.5t | HK$2.5t | HK$76.8b | 8.2x | 20x | 0.6x |
| Thu, 27 Oct 2022 | HK$1.5t | HK$2.5t | HK$77.0b | 8x | 18.9x | 0.6x |
| Sat, 24 Sep 2022 | HK$1.5t | HK$2.5t | HK$77.3b | 8.4x | 19.9x | 0.6x |
| Mon, 22 Aug 2022 | HK$1.7t | HK$2.6t | HK$68.5b | 8.9x | 25.1x | 0.7x |
| Wed, 20 Jul 2022 | HK$1.8t | HK$2.6t | HK$81.1b | 8.8x | 21.9x | 0.7x |
| Fri, 17 Jun 2022 | HK$1.9t | HK$2.6t | HK$83.1b | 8.2x | 23.1x | 0.7x |
| Sun, 15 May 2022 | HK$1.8t | HK$2.6t | HK$89.6b | 9x | 19.7x | 0.7x |
| Tue, 12 Apr 2022 | HK$1.9t | HK$2.7t | HK$90.2b | 9.6x | 21x | 0.7x |
| Thu, 10 Mar 2022 | HK$1.8t | HK$2.6t | HK$130.4b | 9.8x | 13.9x | 0.7x |
| Sat, 05 Feb 2022 | HK$2.1t | HK$2.5t | HK$123.1b | 11.1x | 17.1x | 0.8x |
| Mon, 03 Jan 2022 | HK$2.3t | HK$2.5t | HK$123.6b | 11.4x | 18.7x | 0.9x |
| Wed, 01 Dec 2021 | HK$2.3t | HK$2.5t | HK$123.2b | 11.4x | 18.9x | 0.9x |
| Fri, 29 Oct 2021 | HK$2.3t | HK$2.4t | HK$127.8b | 11.5x | 18.2x | 1x |
| Sun, 26 Sep 2021 | HK$2.4t | HK$2.4t | HK$127.6b | 11.9x | 18.7x | 1x |
| Tue, 24 Aug 2021 | HK$2.6t | HK$2.5t | HK$119.4b | 11.8x | 21.9x | 1.1x |
| Wed, 30 Jun 2021 | HK$2.8t | HK$2.5t | HK$119.4b | 11.6x | 23.6x | 1.1x |
| Sat, 03 Apr 2021 | HK$2.6t | HK$2.3t | HK$110.7b | 12.1x | 23.2x | 1.1x |
| Tue, 05 Jan 2021 | HK$2.7t | HK$2.1t | HK$87.4b | 12.4x | 30.9x | 1.3x |
| Fri, 09 Oct 2020 | HK$1.9t | HK$2.0t | HK$70.6b | 13.4x | 27.3x | 0.9x |
| Thu, 02 Jul 2020 | HK$1.5t | HK$1.9t | HK$62.2b | 12.8x | 24.2x | 0.8x |
| Sun, 05 Apr 2020 | HK$1.2t | HK$1.9t | HK$60.9b | 13.2x | 19x | 0.6x |
| Wed, 08 Jan 2020 | HK$1.4t | HK$2.0t | HK$65.9b | 15.6x | 20.7x | 0.7x |
Price to Earnings Ratio
20.6x
Current Industry PE
- Investors are pessimistic on the Hong Kong Information Technology 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 20.0x which is lower than its 3-year average PE of 22.9x.
- The industry is trading close to its 3-year average PS ratio of 0.88x.
Past Earnings Growth
- The earnings for companies in the Information Technology industry have grown 9.0% per year over the last three years.
- Revenues for these companies have grown 9.6% 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 Hong Kong Tech sector?
| HK Market | -0.40% | |
| Tech | -4.77% | |
| Communications | 1.54% | |
| Electronic Equipment and Components | -3.02% | |
| IT | -4.09% | |
| Semiconductors | -4.60% | |
| Tech Hardware | -5.46% | |
| Software | -10.42% | |
Industry PE
- Investors are most optimistic about the Communications industry which is trading above its 3-year average PE ratio of 30.1x.
- Analysts expect its future annual earnings growth (31.2%) to be largely in line with prior year's earnings growth.
Forecasted Growth
- Analysts are most optimistic on the Software industry, expecting annual earnings growth of 49% over the next 5 years.
- This is better than its past earnings decline of 16% per year.
- In contrast, the Semiconductors industry is expected to see its earnings grow by 4.2% 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 | |
|---|---|---|---|---|---|
| 285 BYD Electronic (International) | HK$24.55 | 12.1% +HK$6.0b | -15.2% | PE39.2x | |
| 2382 Sunny Optical Technology (Group) | HK$90.05 | 3.0% +HK$2.9b | -61.8% | PE24.8x | |
| 1810 Xiaomi | HK$9.97 | 1.0% +HK$2.5b | -48.3% | PE125.3x | |
| 696 TravelSky Technology | HK$14.26 | 4.9% +HK$1.9b | 10.5% | PE53.5x | |
| 909 Ming Yuan Cloud Group Holdings | HK$6.07 | 14.3% +HK$1.4b | -72.8% | PS5x |
