New Narrative • Aug 24
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- 7D-3.3%
- 3M-32.1%
- 1Y-24.0%
- YTD13.1%
Over the last 7 days, the IT industry has dropped 3.3%, driven by a pullback from Shenzhen Xunce Technology of 9.9%. On the other hand Chinasoft International is actually up 11%. The industry has fallen 24% in the last year. Looking forward, earnings are forecast to grow by 61% annually.
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 |
|---|---|---|---|---|---|---|
| Wed, 26 Aug 2026 | HK$111.8b | HK$87.0b | HK$1.1b | 23.5x | 99.1x | 1.3x |
| Fri, 24 Jul 2026 | HK$103.1b | HK$71.2b | HK$1.5b | 22.9x | 69.1x | 1.4x |
| Sun, 21 Jun 2026 | HK$103.6b | HK$71.2b | HK$1.5b | 21.3x | 70.8x | 1.5x |
| Tue, 19 May 2026 | HK$175.4b | HK$70.9b | HK$1.5b | 21.9x | 120.3x | 2.5x |
| Thu, 16 Apr 2026 | HK$182.7b | HK$70.8b | HK$1.5b | 20x | 125.2x | 2.6x |
| Sat, 14 Mar 2026 | HK$114.7b | HK$65.8b | HK$1.8b | 17.3x | 64.6x | 1.7x |
| Mon, 09 Feb 2026 | HK$94.3b | HK$65.4b | HK$1.7b | 21.3x | 54.8x | 1.4x |
| Wed, 07 Jan 2026 | HK$88.4b | HK$64.8b | HK$1.7b | 20.7x | 51.7x | 1.4x |
| Fri, 05 Dec 2025 | HK$79.0b | HK$63.9b | HK$1.9b | 20.9x | 42.2x | 1.2x |
| Sun, 02 Nov 2025 | HK$83.8b | HK$63.5b | HK$1.9b | 24.5x | 44.6x | 1.3x |
| Tue, 30 Sep 2025 | HK$87.9b | HK$63.6b | HK$1.9b | 25.9x | 46.7x | 1.4x |
| Thu, 28 Aug 2025 | HK$88.6b | HK$61.7b | HK$930.1m | 27.1x | 95.3x | 1.4x |
| Sat, 26 Jul 2025 | HK$86.3b | HK$61.0b | HK$246.0m | 25.7x | 350.7x | 1.4x |
| Mon, 23 Jun 2025 | HK$82.3b | HK$61.5b | HK$353.4m | 14.4x | 233x | 1.3x |
| Wed, 21 May 2025 | HK$96.1b | HK$61.0b | HK$349.6m | 13.2x | 274.9x | 1.6x |
| Fri, 18 Apr 2025 | HK$82.3b | HK$60.0b | HK$355.5m | 12.4x | 231.4x | 1.4x |
| Sun, 16 Mar 2025 | HK$82.5b | HK$60.2b | -HK$978,037,581.63 | 17.7x | -84.3x | 1.4x |
| Tue, 11 Feb 2025 | HK$67.0b | HK$59.7b | -HK$1,017,620,290.49 | 14.8x | -65.9x | 1.1x |
| Thu, 09 Jan 2025 | HK$57.7b | HK$59.4b | -HK$1,009,452,491.84 | 14.1x | -57.1x | 1x |
| Sat, 07 Dec 2024 | HK$57.9b | HK$59.9b | -HK$1,025,138,156.47 | 15.4x | -56.5x | 1x |
| Mon, 04 Nov 2024 | HK$54.6b | HK$61.1b | -HK$770,268,536.17 | 17.6x | -70.9x | 0.9x |
| Wed, 02 Oct 2024 | HK$52.8b | HK$61.2b | -HK$834,283,698.89 | 15.6x | -63.3x | 0.9x |
| Fri, 30 Aug 2024 | HK$47.0b | HK$60.3b | -HK$1,529,622,231.20 | 13.6x | -30.7x | 0.8x |
| Sun, 28 Jul 2024 | HK$48.4b | HK$59.7b | -HK$1,278,764,802.37 | 12.2x | -37.9x | 0.8x |
| Tue, 25 Jun 2024 | HK$47.1b | HK$59.3b | -HK$1,291,748,860.94 | 13.4x | -36.5x | 0.8x |
| Thu, 23 May 2024 | HK$48.4b | HK$58.3b | -HK$1,328,162,678.95 | 14.2x | -36.4x | 0.8x |
| Sat, 20 Apr 2024 | HK$43.1b | HK$58.4b | -HK$1,328,428,612.68 | 12.9x | -32.4x | 0.7x |
| Mon, 18 Mar 2024 | HK$45.4b | HK$58.8b | HK$1.2b | 9.8x | 39.2x | 0.8x |
| Wed, 14 Feb 2024 | HK$43.2b | HK$58.6b | HK$1.2b | 10.4x | 36.2x | 0.7x |
| Fri, 12 Jan 2024 | HK$48.3b | HK$59.8b | HK$1.1b | 10.3x | 44.5x | 0.8x |
| Sun, 10 Dec 2023 | HK$54.0b | HK$60.2b | HK$1.1b | 12x | 48.7x | 0.9x |
| Tue, 07 Nov 2023 | HK$56.1b | HK$59.5b | HK$1.1b | 11.2x | 51.5x | 0.9x |
| Thu, 05 Oct 2023 | HK$55.9b | HK$59.0b | HK$997.7m | 11.6x | 56x | 0.9x |
| Sat, 02 Sep 2023 | HK$56.4b | HK$57.5b | HK$896.0m | 11.5x | 62.9x | 1x |
Price to Earnings Ratio
62.9x
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 99x which is higher than its 3-year average PE of 51.6x.
- The industry is trading close to its 3-year average PS ratio of 1.2x.
Past Earnings Growth
- The earnings for companies in the IT industry have grown 8.0% per year over the last three years.
- Revenues for these companies have grown 15% 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 industry?
| HK Market | 1.49% | |
| Tech | -2.88% | |
| IT | -3.30% | |
| Data Processing Services | 6.23% | |
| IT Consulting | -3.13% | |
| Internet Services and Infrastructure | -3.65% | |
Industry PE
- Investors are most optimistic about the Internet Services and Infrastructure industry which is trading above its 3-year average PE ratio of 24.4x.
- Analysts are expecting annual earnings growth of 21.3%, which is higher than its past year's earnings growth of 1.5% per year.
Forecasted Growth
- Analysts are most optimistic on the IT Consulting industry, expecting annual earnings growth of 79% over the next 5 years.
- This is better than its past earnings growth rate of 3.5% per year.
- In contrast, the Internet Services and Infrastructure industry is expected to see its earnings grow by 21% 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$3.90 | 11.4% +HK$1.0b | -41.7% | PE23.5x | |
| 2416 Edianyun | HK$4.40 | 25.2% +HK$435.9m | 97.3% | PE14.3x | |
| 2436 LX Technology Group | HK$21.76 | 5.9% +HK$424.7m | 519.9% | PE479.6x | |
| 1782 International Business Digital Technology | HK$2.57 | 10.3% +HK$192.0m | -26.8% | PS16.8x | |
| 1402 i-Control Holdings | HK$0.45 | 30.9% +HK$110.3m | 61.8% | PE1273.8x |