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Jan 14
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Hong Kong (HSI) Tech Sector Analysis
UpdatedJan 17, 2025
DataAggregated Company Financials
Companies213
- 7D2.9%
- 3M14.8%
- 1Y61.5%
- YTD3.7%
In the last week, the Tech industry is up 2.9%, with Semiconductor Manufacturing International up 14%. Meanwhile, Lenovo Group actually underperformed within the industry, shrinking 5.4% in the last week. This means that the industry has gained 61% over the past year. As for the next few years, earnings are expected to grow by 27% per annum.
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 |
|---|---|---|---|---|---|---|
| Sat, 18 Jan 2025 | HK$2.4t | HK$2.4t | HK$35.6b | 11.6x | 68x | 1x |
| Mon, 16 Dec 2024 | HK$2.3t | HK$2.4t | HK$37.2b | 11.3x | 61.5x | 0.9x |
| Wed, 13 Nov 2024 | HK$2.2t | HK$2.4t | HK$33.1b | 11.6x | 67x | 0.9x |
| Fri, 11 Oct 2024 | HK$2.0t | HK$2.4t | HK$34.2b | 11.1x | 59.1x | 0.8x |
| Sun, 08 Sep 2024 | HK$1.6t | HK$2.4t | HK$34.3b | 10x | 45.9x | 0.7x |
| Tue, 06 Aug 2024 | HK$1.5t | HK$2.3t | HK$45.6b | 11.2x | 32.3x | 0.6x |
| Thu, 04 Jul 2024 | HK$1.7t | HK$2.3t | HK$44.7b | 11.6x | 37.1x | 0.7x |
| Sat, 01 Jun 2024 | HK$1.7t | HK$2.3t | HK$42.3b | 12.3x | 39.3x | 0.7x |
| Mon, 29 Apr 2024 | HK$1.6t | HK$2.2t | HK$43.1b | 11.3x | 36.1x | 0.7x |
| Wed, 27 Mar 2024 | HK$1.5t | HK$2.2t | HK$51.0b | 10.3x | 29.9x | 0.7x |
| Fri, 23 Feb 2024 | HK$1.4t | HK$2.3t | HK$64.3b | 9.7x | 21.6x | 0.6x |
| Sun, 21 Jan 2024 | HK$1.4t | HK$2.3t | HK$66.3b | 9.6x | 21.6x | 0.6x |
| Tue, 19 Dec 2023 | HK$1.6t | HK$2.3t | HK$66.3b | 9.8x | 24.1x | 0.7x |
| Thu, 16 Nov 2023 | HK$1.7t | HK$2.3t | HK$67.7b | 11.7x | 25x | 0.7x |
| Sat, 14 Oct 2023 | HK$1.5t | HK$2.3t | HK$70.9b | 10.2x | 21.6x | 0.7x |
| Mon, 11 Sep 2023 | HK$1.5t | HK$2.3t | HK$70.7b | 10.9x | 21.9x | 0.7x |
| Wed, 09 Aug 2023 | HK$1.6t | HK$2.4t | HK$80.0b | 10.3x | 19.9x | 0.7x |
| Fri, 07 Jul 2023 | HK$1.6t | HK$2.4t | HK$81.8b | 10.1x | 19.3x | 0.7x |
| Sun, 04 Jun 2023 | HK$1.6t | HK$2.4t | HK$83.2b | 8.6x | 18.9x | 0.7x |
| Tue, 02 May 2023 | HK$1.7t | HK$2.5t | HK$81.4b | 8.9x | 20.7x | 0.7x |
| Thu, 30 Mar 2023 | HK$1.7t | HK$2.8t | HK$145.6b | 8.6x | 11.8x | 0.6x |
| Sat, 25 Feb 2023 | HK$1.8t | HK$2.5t | HK$74.8b | 8.6x | 23.6x | 0.7x |
| Mon, 23 Jan 2023 | HK$1.8t | HK$2.6t | HK$76.4b | 8.4x | 23.9x | 0.7x |
| Wed, 21 Dec 2022 | HK$1.6t | HK$2.5t | HK$76.2b | 8.2x | 21.4x | 0.6x |
| Fri, 18 Nov 2022 | HK$1.7t | HK$2.5t | HK$79.3b | 8.2x | 20.9x | 0.7x |
| Sun, 16 Oct 2022 | HK$1.4t | HK$2.5t | HK$77.1b | 7.8x | 18.1x | 0.6x |
| Tue, 13 Sep 2022 | HK$1.7t | HK$2.6t | HK$79.2b | 8.8x | 21.5x | 0.7x |
| Thu, 11 Aug 2022 | HK$1.7t | HK$2.6t | HK$80.6b | 8.5x | 21.3x | 0.7x |
| Sat, 09 Jul 2022 | HK$1.9t | HK$2.6t | HK$81.0b | 8.7x | 23.1x | 0.7x |
| Mon, 06 Jun 2022 | HK$1.9t | HK$2.6t | HK$83.1b | 8.5x | 23.4x | 0.7x |
| Wed, 04 May 2022 | HK$1.9t | HK$2.6t | HK$89.9b | 9.1x | 20.8x | 0.7x |
| Fri, 01 Apr 2022 | HK$2.0t | HK$2.6t | HK$107.1b | 10.6x | 19.1x | 0.8x |
| Sun, 27 Feb 2022 | HK$2.0t | HK$2.6t | HK$126.7b | 11.1x | 16.1x | 0.8x |
| Tue, 25 Jan 2022 | HK$2.2t | HK$2.5t | HK$123.6b | 11.1x | 17.7x | 0.9x |
Price to Earnings Ratio
17.7x
Current Industry PE
- Investors are optimistic on the Hong Kong Information Technology industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 68.0x which is higher than its 3-year average PE of 28.5x.
- The 3-year average PS ratio of 0.71x is lower than the industry's current PS ratio of 1.0x.
Past Earnings Growth
- The earnings for companies in the Information Technology industry have declined 34% per year over the last three years.
- Meanwhile revenues have remained mostly flat.
- This means that although sales have remained flat, 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 Hong Kong Tech sector?
| HK Market | 1.10% | |
| Tech | 2.95% | |
| Semiconductors | 10.78% | |
| Electronic Equipment and Components | 1.69% | |
| Tech Hardware | 0.79% | |
| IT | -1.64% | |
| Software | -2.40% | |
| Communications | -4.34% | |
Industry PE
- Investors are most optimistic about the Semiconductors industry which is trading above its 3-year average PE ratio of 21.9x.
- Analysts are expecting annual earnings growth of 27.9%, which is higher than its past year's earnings decline of 42.8% per year.
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 its past earnings growth rate of 10% per year.
- In contrast, the IT industry is expected to see its earnings grow by 20% 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 | |
|---|---|---|---|---|---|
| 981 Semiconductor Manufacturing International | HK$39.45 | 21.9% +HK$56.6b | 152.6% | PE72.2x | |
| 1810 Xiaomi | HK$34.95 | 4.2% +HK$35.0b | 165.2% | PE42.6x | |
| 1347 Hua Hong Semiconductor | HK$24.40 | 17.0% +HK$6.1b | 44.4% | PE45.4x | |
| 20 SenseTime Group | HK$1.37 | 7.0% +HK$3.2b | 53.9% | PS12.2x | |
| 2577 InnoScience (Suzhou) Technology Holding | HK$38.50 | 10.0% +HK$3.1b | n/a | PS47.5x |
