Is There An Opportunity With Chinasoft International Limited's (HKG:354) 22% Undervaluation?
Jan 29
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Hong Kong (HSI) IT Industry Analysis
UpdatedJan 30, 2025
DataAggregated Company Financials
Companies35
- 7D0.3%
- 3M6.0%
- 1Y21.0%
- YTD2.6%
Last week, the IT industry hasn't moved much but Chinasoft International is up 3.4% in that time. The past year has been better, since the industry has gained 17% in that time. As for the next few years, earnings are expected to grow by 19% per annum.
Industry Valuation and Performance
Has the Hong Kong IT Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 30 Jan 2025 | HK$57.6b | HK$60.1b | -HK$1,031,325,566.39 | 14x | -55.8x | 1x |
| Sat, 28 Dec 2024 | HK$57.0b | HK$59.5b | -HK$1,013,056,092.23 | 15.2x | -56.3x | 1x |
| Mon, 25 Nov 2024 | HK$56.2b | HK$60.3b | -HK$753,627,799.85 | 18.4x | -74.5x | 0.9x |
| Wed, 23 Oct 2024 | HK$57.0b | HK$62.6b | -HK$1,177,626,292.53 | 17.1x | -48.4x | 0.9x |
| Fri, 20 Sep 2024 | HK$48.7b | HK$61.0b | -HK$783,547,942.11 | 14.2x | -62.1x | 0.8x |
| Sun, 18 Aug 2024 | HK$47.9b | HK$59.6b | -HK$1,374,206,351.98 | 13.3x | -34.8x | 0.8x |
| Tue, 16 Jul 2024 | HK$50.7b | HK$59.6b | -HK$1,281,484,644.46 | 14.3x | -39.6x | 0.9x |
| Thu, 13 Jun 2024 | HK$46.1b | HK$58.5b | -HK$1,303,028,634.80 | 13.3x | -35.4x | 0.8x |
| Sat, 11 May 2024 | HK$46.9b | HK$58.5b | -HK$1,335,825,677.19 | 14.3x | -35.1x | 0.8x |
| Mon, 08 Apr 2024 | HK$43.9b | HK$58.4b | -HK$1,329,233,470.47 | 13.5x | -33x | 0.8x |
| Wed, 06 Mar 2024 | HK$44.4b | HK$58.8b | HK$1.2b | 9.5x | 38.3x | 0.8x |
| Fri, 02 Feb 2024 | HK$42.8b | HK$59.7b | HK$1.1b | 10.6x | 39.4x | 0.7x |
| Sun, 31 Dec 2023 | HK$55.3b | HK$60.7b | HK$1.1b | 11.2x | 49.9x | 0.9x |
| Tue, 28 Nov 2023 | HK$58.4b | HK$60.0b | HK$1.1b | 13.5x | 53.2x | 1x |
| Thu, 26 Oct 2023 | HK$54.4b | HK$59.1b | HK$1.1b | 11.5x | 49.8x | 0.9x |
| Sat, 23 Sep 2023 | HK$58.8b | HK$58.9b | HK$990.0m | 10.6x | 59.4x | 1x |
| Mon, 21 Aug 2023 | HK$52.0b | HK$55.9b | HK$1.9b | 11.7x | 27.2x | 0.9x |
| Wed, 19 Jul 2023 | HK$52.3b | HK$58.1b | HK$2.0b | 12.1x | 25.6x | 0.9x |
| Fri, 16 Jun 2023 | HK$53.9b | HK$57.9b | HK$2.0b | 10.2x | 27x | 0.9x |
| Sun, 14 May 2023 | HK$51.1b | HK$57.4b | HK$1.9b | 7.6x | 26.2x | 0.9x |
| Tue, 11 Apr 2023 | HK$53.8b | HK$57.7b | HK$1.9b | 12.6x | 28x | 0.9x |
| Thu, 09 Mar 2023 | HK$119.3b | HK$74.4b | HK$4.9b | 11.5x | 24.2x | 1.6x |
| Sat, 04 Feb 2023 | HK$127.7b | HK$75.4b | HK$5.0b | 11.8x | 25.7x | 1.7x |
| Mon, 02 Jan 2023 | HK$120.4b | HK$74.3b | HK$4.9b | 11.3x | 24.5x | 1.6x |
| Wed, 30 Nov 2022 | HK$108.2b | HK$72.4b | HK$4.8b | 11.5x | 22.7x | 1.5x |
| Fri, 28 Oct 2022 | HK$100.3b | HK$73.1b | HK$4.7b | 11.2x | 21.2x | 1.4x |
| Sun, 25 Sep 2022 | HK$103.9b | HK$73.2b | HK$4.8b | 12.1x | 21.8x | 1.4x |
| Tue, 23 Aug 2022 | HK$116.2b | HK$73.1b | HK$4.8b | 11.6x | 24.2x | 1.6x |
| Thu, 21 Jul 2022 | HK$122.4b | HK$74.2b | HK$7.5b | 12x | 16.3x | 1.7x |
| Sat, 18 Jun 2022 | HK$121.5b | HK$73.7b | HK$7.5b | 11.3x | 16.1x | 1.6x |
| Mon, 16 May 2022 | HK$108.9b | HK$73.6b | HK$7.5b | 11.8x | 14.5x | 1.5x |
| Wed, 13 Apr 2022 | HK$117.4b | HK$76.0b | HK$7.7b | 12.3x | 15.3x | 1.5x |
| Fri, 11 Mar 2022 | HK$118.5b | HK$73.6b | HK$8.3b | 11.2x | 14.2x | 1.6x |
| Sun, 06 Feb 2022 | HK$134.0b | HK$73.1b | HK$8.3b | 12.7x | 16.2x | 1.8x |
Price to Earnings Ratio
16.2x
Current Industry PE
- Investors are pessimistic on the Hong Kong IT industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The 3-year average PS ratio of 1.1x is higher than the industry's current PS ratio of 0.96x.
Past Earnings Growth
- Total earnings for the IT industry have declined over the last three years, with the industry now making a loss overall.
- Revenues have also declined 6.3% per year, which is driving profits down.
Industry Trends
Which industries have driven the changes within the Hong Kong Tech industry?
| HK Market | 1.94% | |
| Tech | 1.59% | |
| IT | 0.26% | |
| Data Processing Services | 18.87% | |
| IT Consulting | 1.28% | |
| Internet Services and Infrastructure | -2.12% | |
Industry PE
- Investors are most optimistic about the Data Processing Services industry even though it's trading below its 3-year average PE ratio of 32.8x.
- It looks like they are confident that earnings will grow faster in the future than they have historically.
Forecasted Growth
- Analysts are most optimistic on the IT Consulting industry, expecting annual earnings growth of 24% over the next 5 years.
- This is better than its past earnings decline of 14% per year.
- In contrast, the Internet Services and Infrastructure industry is expected to see its earnings grow by 14% 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 | |
|---|---|---|---|---|---|
| 354 Chinasoft International | HK$5.22 | 5.7% +HK$696.8m | 17.0% | PE18.7x | |
| 2479 Tianju Dihe (Suzhou) Data | HK$79.40 | 5.2% +HK$198.0m | n/a | PE102.8x | |
| 1782 International Business Digital Technology | HK$4.26 | 4.9% +HK$152.4m | 9.2% | PS24.1x | |
| 6657 Baiwang | HK$36.70 | 1.2% +HK$101.7m | n/a | PS11.7x | |
| 2477 WellCell Holdings | HK$11.68 | 1.0% +HK$60.0m | 273.2% | PE330.1x |
