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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?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Mon, 29 Nov 2021 | HK$2.3t | HK$2.5t | HK$123.1b | 11.4x |
| Wed, 27 Oct 2021 | HK$2.4t | HK$2.4t | HK$127.2b | 11.6x |
| Fri, 24 Sep 2021 | HK$2.4t | HK$2.4t | HK$127.6b | 12x |
| Sun, 22 Aug 2021 | HK$2.5t | HK$2.5t | HK$119.4b | 11.8x |
| Fri, 09 Jul 2021 | HK$2.8t | HK$2.5t | HK$119.4b | 11.6x |
| Thu, 01 Apr 2021 | HK$2.6t | HK$2.3t | HK$110.7b | 12.1x |
| Sun, 03 Jan 2021 | HK$2.7t | HK$2.1t | HK$87.4b | 12.4x |
| Wed, 07 Oct 2020 | HK$1.9t | HK$2.0t | HK$70.6b | 13.4x |
| Tue, 30 Jun 2020 | HK$1.5t | HK$1.9t | HK$62.2b | 12.8x |
| Fri, 03 Apr 2020 | HK$1.2t | HK$1.9t | HK$60.9b | 13.2x |
| Mon, 06 Jan 2020 | HK$1.4t | HK$2.0t | HK$65.9b | 15.6x |
| Thu, 10 Oct 2019 | HK$1.2t | HK$1.9t | HK$59.2b | 12.4x |
| Wed, 03 Jul 2019 | HK$1.2t | HK$1.9t | HK$52.1b | 11.7x |
| Sat, 06 Apr 2019 | HK$1.3t | HK$1.9t | HK$72.4b | 14.3x |
| Tue, 08 Jan 2019 | HK$1.2t | HK$1.9t | HK$62.0b | 12.4x |
PE Ratio
12.9x
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?
| Communications | 5.48% | |
| Electronic Equipment and Components | 3.36% | |
| 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?
| Company | 7D | 1Y | Valuation | |
|---|---|---|---|---|
| 285 BYD Electronic (International) | 5.5%+HK$3.7b | -16.9% | PE12.8x | |
| 2382 Sunny Optical Technology (Group) | 1.4%+HK$3.5b | 55.9% | PE36.7x | |
| 1347 Hua Hong Semiconductor | 5.0%+HK$3.1b | 28.6% | PE48.1x | |
| 9923 Yeahka | 13.1%+HK$1.5b | -29.2% | PE20.3x | |
| 1967 Confidence Intelligence Holdings | 17.4%+HK$795.0m | 153.5% | PE289.7x |
