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Hong Kong (HSI) Tech Sector Analysis

UpdatedNov 28, 2021
DataAggregated Company Financials
Companies205
  • 7D-4.0%
  • 3M-11.9%
  • 1Y2.2%
  • YTD-17.2%

Over the last 7 days, the Tech industry has dropped 4.0%, driven by a pullback from Xiaomi of 9.9%. Meanwhile, Sunny Optical Technology (Group) actually outperformed within the industry, gaining 5.4% in the last week. As for the longer term, the industry's performance has been flat for the past year.

Sector Valuation and Performance

Has the Hong Kong Tech Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPE
Mon, 29 Nov 2021HK$2.3tHK$2.5tHK$123.1b11.4x
Wed, 27 Oct 2021HK$2.4tHK$2.4tHK$127.2b11.6x
Fri, 24 Sep 2021HK$2.4tHK$2.4tHK$127.6b12x
Sun, 22 Aug 2021HK$2.5tHK$2.5tHK$119.4b11.8x
Fri, 09 Jul 2021HK$2.8tHK$2.5tHK$119.4b11.6x
Thu, 01 Apr 2021HK$2.6tHK$2.3tHK$110.7b12.1x
Sun, 03 Jan 2021HK$2.7tHK$2.1tHK$87.4b12.4x
Wed, 07 Oct 2020HK$1.9tHK$2.0tHK$70.6b13.4x
Tue, 30 Jun 2020HK$1.5tHK$1.9tHK$62.2b12.8x
Fri, 03 Apr 2020HK$1.2tHK$1.9tHK$60.9b13.2x
Mon, 06 Jan 2020HK$1.4tHK$2.0tHK$65.9b15.6x
Thu, 10 Oct 2019HK$1.2tHK$1.9tHK$59.2b12.4x
Wed, 03 Jul 2019HK$1.2tHK$1.9tHK$52.1b11.7x
Sat, 06 Apr 2019HK$1.3tHK$1.9tHK$72.4b14.3x
Tue, 08 Jan 2019HK$1.2tHK$1.9tHK$62.0b12.4x
PE Ratio

12.9x

Total Market Cap: HK$1.2tTotal Earnings: HK$43.8bTotal Revenue: HK$1.8t0%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 13.0x. It appears they believe that earnings will grow in-line with historical growth rates.

Past Earnings Growth: The earnings for companies in the Information Technology industry have grown 41% per year over the last three years, and revenues for these companies have grown 12% 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?

Communications5.48%
Electronic Equipment and Components3.36%
IT-1.03%
Semiconductors-6.08%
Tech Hardware-8.56%
Software-8.87%

Industry PE: Investors are most optimistic about the Semiconductors industry even though it's trading below its 3-year average PE ratio of 22.2x. However analysts are expecting annual earnings growth of 13%, which is lower than the prior year's growth of 109% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Electronic Equipment and Components industry, which is trading below its 3-year average of 11.0x.

Forecasted Growth: Analysts are most optimistic on the Software industry, expecting annual earnings growth of 58% over the next 5 years. This is better than it's past earnings growth rate of 24% per year. Meanwhile, the Tech Hardware industry is expected to see its earnings grow by 8.3% per year over the next few years.

Top Stock Gainers and Losers

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

Company7D1YValuation
285 BYD Electronic (International)5.5%+HK$3.7b-16.9%PE12.8x
2382 Sunny Optical Technology (Group)1.4%+HK$3.5b55.9%PE36.7x
1347 Hua Hong Semiconductor5.0%+HK$3.1b28.6%PE48.1x
9923 Yeahka13.1%+HK$1.5b-29.2%PE20.3x
1967 Confidence Intelligence Holdings17.4%+HK$795.0m153.5%PE289.7x
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9923

HK$29.00

Yeahka

7D

13.1%

1Y

-29.2%