Analysis Article • Apr 02
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- 7D-1.6%
- 3M58.1%
- 1Y-3.9%
- YTD80.6%
Over the last 7 days, the IT industry has dropped 1.6%, driven by a pullback from Edianyun of 21%. On the other hand Shenzhen Xunce Technology is actually up 16%. Overall the industry is down 3.9% in 12 months. As for the next few years, earnings are expected to grow by 60% 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, 14 May 2026 | HK$161.1b | HK$71.0b | HK$1.5b | 21.7x | 110.4x | 2.3x |
| Sat, 11 Apr 2026 | HK$180.9b | HK$70.7b | HK$1.5b | 19.5x | 124.1x | 2.6x |
| Mon, 09 Mar 2026 | HK$102.6b | HK$65.7b | HK$1.8b | 17.2x | 57.8x | 1.6x |
| Wed, 04 Feb 2026 | HK$97.5b | HK$65.4b | HK$1.7b | 22.2x | 56.7x | 1.5x |
| Fri, 02 Jan 2026 | HK$91.1b | HK$64.7b | HK$1.7b | 19.9x | 53.3x | 1.4x |
| Sun, 30 Nov 2025 | HK$78.9b | HK$63.9b | HK$1.9b | 20.4x | 42.2x | 1.2x |
| Tue, 28 Oct 2025 | HK$85.1b | HK$63.6b | HK$1.9b | 25.2x | 45.2x | 1.3x |
| Thu, 25 Sep 2025 | HK$89.1b | HK$63.6b | HK$1.9b | 26.3x | 47.4x | 1.4x |
| Sat, 23 Aug 2025 | HK$88.1b | HK$61.0b | HK$758.9m | 26.9x | 116x | 1.4x |
| Mon, 21 Jul 2025 | HK$84.7b | HK$61.0b | HK$249.1m | 25.3x | 340.1x | 1.4x |
| Wed, 18 Jun 2025 | HK$84.5b | HK$61.4b | HK$343.5m | 15.5x | 246.1x | 1.4x |
| Fri, 16 May 2025 | HK$94.7b | HK$60.9b | HK$350.8m | 13x | 270x | 1.6x |
| Sun, 13 Apr 2025 | HK$83.6b | HK$60.1b | HK$355.1m | 13x | 235.4x | 1.4x |
| Tue, 11 Mar 2025 | HK$84.1b | HK$60.0b | -HK$971,787,557.06 | 17.9x | -86.6x | 1.4x |
| Thu, 06 Feb 2025 | HK$59.7b | HK$59.8b | -HK$1,023,883,508.84 | 14.5x | -58.4x | 1x |
| Sat, 04 Jan 2025 | HK$55.9b | HK$59.5b | -HK$1,012,564,791.62 | 14.1x | -55.2x | 0.9x |
| Mon, 02 Dec 2024 | HK$57.4b | HK$60.3b | -HK$747,546,071.97 | 15.3x | -76.8x | 1x |
| Wed, 30 Oct 2024 | HK$55.2b | HK$61.0b | -HK$764,986,066.74 | 18.1x | -72.2x | 0.9x |
| Fri, 27 Sep 2024 | HK$50.1b | HK$61.3b | -HK$814,137,827.66 | 14.9x | -61.6x | 0.8x |
| Sun, 25 Aug 2024 | HK$49.0b | HK$60.0b | -HK$1,476,187,080.71 | 14.4x | -33.2x | 0.8x |
| Tue, 23 Jul 2024 | HK$49.4b | HK$59.5b | -HK$1,271,018,741.27 | 13.8x | -38.9x | 0.8x |
| Thu, 20 Jun 2024 | HK$49.2b | HK$59.2b | -HK$1,286,404,072.69 | 14.4x | -38.2x | 0.8x |
| Sat, 18 May 2024 | HK$48.5b | HK$58.4b | -HK$1,331,313,343.27 | 14.3x | -36.4x | 0.8x |
| Mon, 15 Apr 2024 | HK$43.9b | HK$58.5b | -HK$1,330,109,922.81 | 13.2x | -33x | 0.8x |
| Wed, 13 Mar 2024 | HK$46.4b | HK$58.9b | HK$1.2b | 9.8x | 40.1x | 0.8x |
| Fri, 09 Feb 2024 | HK$43.3b | HK$59.1b | HK$1.2b | 10.4x | 36.2x | 0.7x |
| Sun, 07 Jan 2024 | HK$50.6b | HK$59.9b | HK$1.1b | 10.5x | 46.5x | 0.8x |
| Tue, 05 Dec 2023 | HK$56.5b | HK$60.5b | HK$1.1b | 12.4x | 51x | 0.9x |
| Thu, 02 Nov 2023 | HK$52.5b | HK$59.1b | HK$1.1b | 10.8x | 48.1x | 0.9x |
| Sat, 30 Sep 2023 | HK$55.9b | HK$59.0b | HK$997.5m | 11.9x | 56x | 0.9x |
| Mon, 28 Aug 2023 | HK$57.0b | HK$57.7b | HK$1.0b | 11.2x | 54.3x | 1x |
| Wed, 26 Jul 2023 | HK$52.9b | HK$58.3b | HK$2.0b | 12.1x | 25.9x | 0.9x |
| Fri, 23 Jun 2023 | HK$52.8b | HK$57.9b | HK$2.0b | 10.1x | 26.4x | 0.9x |
| Sun, 21 May 2023 | HK$51.3b | HK$58.9b | HK$2.0b | 7.7x | 25.5x | 0.9x |
Price to Earnings Ratio
25.5x
Current Industry PE
- Investors are optimistic on the Hong Kong IT industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 110x which is higher than its 3-year average PE of 46.8x.
- The 3-year average PS ratio of 1.1x is lower than the industry's current PS ratio of 2.3x.
Past Earnings Growth
- The earnings for companies in the IT industry have declined 10% per year over the last three years.
- Meanwhile revenues for these companies have grown 6.4% per year.
- This means that although more sales are being generated, 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 industry?
| HK Market | 1.26% | |
| Tech | 5.59% | |
| IT | -1.56% | |
| Internet Services and Infrastructure | 0.67% | |
| Data Processing Services | 0.051% | |
| IT Consulting | -2.05% | |
Industry PE
- Investors are most optimistic about the IT Consulting industry which is trading above its 3-year average PE ratio of 38.7x.
- Analysts are expecting annual earnings growth of 72.9%, which is higher than its past year's earnings decline of 1.2% per year.
Forecasted Growth
- Analysts are most optimistic on the IT Consulting industry, expecting annual earnings growth of 73% over the next 5 years.
- This is better than its past earnings decline of 1.2% per year.
- In contrast, the Internet Services and Infrastructure industry is expected to see its earnings grow by 19% 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 | |
|---|---|---|---|---|---|
| 3317 Shenzhen Xunce Technology | HK$283.20 | 15.8% +HK$12.5b | n/a | PS61.7x | |
| 2477 WellCell Holdings | HK$5.35 | 32.8% +HK$5.3b | 201.8% | PE1210x | |
| 1686 SUNeVision Holdings | HK$7.00 | 8.5% +HK$2.2b | 9.5% | PE27.8x | |
| 2436 LX Technology Group | HK$20.42 | 24.9% +HK$1.4b | 795.6% | PE460.6x | |
| 8198 Crypto Flow Technology | HK$1.85 | 28.5% +HK$294.2m | -4.6% | PS28.1x |