Returns On Capital At Chinasoft International (HKG:354) Paint A Concerning Picture
Nov 18
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Hong Kong (HSI) IT Industry Analysis
UpdatedNov 21, 2024
DataAggregated Company Financials
Companies35
- 7D1.2%
- 3M15.6%
- 1Y-10.1%
- YTD0.08%
Over the last 7 days, the IT industry has remained flat, although notably SUNeVision Holdings gained 6.7%. Unfortunately though, the industry is down 10% over the past 12 months. As for the next few years, earnings are expected to grow by 23% 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, 21 Nov 2024 | HK$56.7b | HK$60.3b | -HK$753,642,916.14 | 17.8x | -75.3x | 0.9x |
| Sat, 19 Oct 2024 | HK$58.7b | HK$62.7b | -HK$1,181,697,183.75 | 17.5x | -49.7x | 0.9x |
| Mon, 16 Sep 2024 | HK$46.5b | HK$60.8b | -HK$777,332,273.20 | 13.7x | -59.8x | 0.8x |
| Wed, 14 Aug 2024 | HK$47.0b | HK$60.1b | -HK$1,300,628,059.10 | 12.6x | -36.2x | 0.8x |
| Fri, 12 Jul 2024 | HK$50.8b | HK$59.6b | -HK$1,281,379,203.09 | 14.1x | -39.7x | 0.9x |
| Sun, 09 Jun 2024 | HK$46.3b | HK$58.6b | -HK$1,305,515,745.80 | 13.6x | -35.5x | 0.8x |
| Tue, 07 May 2024 | HK$45.6b | HK$58.5b | -HK$1,340,021,959.81 | 13.7x | -34.1x | 0.8x |
| Thu, 04 Apr 2024 | HK$43.4b | HK$58.4b | -HK$1,286,705,049.50 | 10.5x | -33.8x | 0.7x |
| Sat, 02 Mar 2024 | HK$45.7b | HK$58.8b | HK$1.2b | 9.6x | 39.5x | 0.8x |
| Mon, 29 Jan 2024 | HK$46.3b | HK$59.8b | HK$1.1b | 10.5x | 42.6x | 0.8x |
| Wed, 27 Dec 2023 | HK$53.6b | HK$60.5b | HK$1.1b | 11.1x | 48.4x | 0.9x |
| Fri, 24 Nov 2023 | HK$59.9b | HK$60.2b | HK$1.1b | 13.9x | 54.4x | 1x |
| Sun, 22 Oct 2023 | HK$54.7b | HK$59.2b | HK$1.1b | 11.3x | 50.1x | 0.9x |
| Tue, 19 Sep 2023 | HK$60.0b | HK$58.8b | HK$969.4m | 11.7x | 61.9x | 1x |
| Thu, 17 Aug 2023 | HK$52.3b | HK$57.4b | HK$2.1b | 12.4x | 24.4x | 0.9x |
| Sat, 15 Jul 2023 | HK$52.8b | HK$58.3b | HK$2.0b | 12.1x | 25.8x | 0.9x |
| Mon, 12 Jun 2023 | HK$53.3b | HK$58.3b | HK$2.0b | 10.1x | 26.5x | 0.9x |
| Wed, 10 May 2023 | HK$51.8b | HK$57.5b | HK$1.9b | 10x | 26.9x | 0.9x |
| Fri, 07 Apr 2023 | HK$53.8b | HK$57.8b | HK$1.9b | 12.7x | 28.6x | 0.9x |
| Sun, 05 Mar 2023 | HK$121.4b | HK$74.4b | HK$4.9b | 12.1x | 24.6x | 1.6x |
| Tue, 31 Jan 2023 | HK$125.3b | HK$75.3b | HK$5.0b | 11.3x | 25.2x | 1.7x |
| Thu, 29 Dec 2022 | HK$120.4b | HK$73.8b | HK$4.9b | 11.4x | 24.7x | 1.6x |
| Sat, 26 Nov 2022 | HK$105.6b | HK$72.7b | HK$4.8b | 11.2x | 22.1x | 1.5x |
| Mon, 24 Oct 2022 | HK$102.9b | HK$72.7b | HK$4.7b | 11.3x | 21.8x | 1.4x |
| Wed, 21 Sep 2022 | HK$107.5b | HK$73.8b | HK$4.8b | 12.5x | 22.4x | 1.5x |
| Fri, 19 Aug 2022 | HK$115.5b | HK$73.3b | HK$4.8b | 11.5x | 23.9x | 1.6x |
| Sun, 17 Jul 2022 | HK$120.5b | HK$74.1b | HK$7.5b | 12x | 16x | 1.6x |
| Tue, 14 Jun 2022 | HK$120.4b | HK$73.7b | HK$7.5b | 11.4x | 16x | 1.6x |
| Thu, 12 May 2022 | HK$108.5b | HK$73.8b | HK$7.5b | 11.8x | 14.4x | 1.5x |
| Sat, 09 Apr 2022 | HK$116.8b | HK$76.0b | HK$7.7b | 12.5x | 15.2x | 1.5x |
| Mon, 07 Mar 2022 | HK$122.6b | HK$73.6b | HK$8.3b | 11.3x | 14.7x | 1.7x |
| Wed, 02 Feb 2022 | HK$132.9b | HK$73.1b | HK$8.3b | 12.6x | 16.1x | 1.8x |
| Fri, 31 Dec 2021 | HK$139.2b | HK$73.0b | HK$8.3b | 13.5x | 16.9x | 1.9x |
| Sun, 28 Nov 2021 | HK$145.8b | HK$72.4b | HK$8.3b | 11.7x | 17.5x | 2x |
Price to Earnings Ratio
17.5x
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 1.2x is higher than the industry's current PS ratio of 0.93x.
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 5.9% per year, which is driving profits down.
Industry Trends
Which industries have driven the changes within the Hong Kong Tech industry?
| HK Market | 0.42% | |
| Tech | -2.53% | |
| IT | 1.23% | |
| Data Processing Services | 13.29% | |
| Internet Services and Infrastructure | 6.22% | |
| IT Consulting | -0.90% | |
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 32.2x.
- 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 32% over the next 5 years.
- This is better than its past earnings decline of 23% per year.
- In contrast, the Internet Services and Infrastructure industry is expected to see its earnings grow by 12% 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 | |
|---|---|---|---|---|---|
| 1686 SUNeVision Holdings | HK$4.06 | 7.4% +HK$1.1b | 31.0% | PE18.2x | |
| 1782 International Business Digital Technology | HK$4.00 | 23.1% +HK$571.5m | -48.0% | PS22.6x | |
| 861 Digital China Holdings | HK$3.32 | 6.4% +HK$334.7m | 41.9% | PS0.3x | |
| 2477 WellCell Holdings | HK$4.42 | 12.2% +HK$240.0m | n/a | PE124.9x | |
| 354 Chinasoft International | HK$5.77 | 1.4% +HK$199.1m | -15.5% | PE20.6x |
