These 4 Measures Indicate That SUNeVision Holdings (HKG:1686) Is Using Debt Extensively
Jun 05
Hong Kong (HSI) IT Industry Analysis
UpdatedJun 07, 2023
DataAggregated Company Financials
Companies32
- 7D1.3%
- 3M-3.2%
- 1Y-24.8%
- YTD-8.5%
Over the last 7 days, the IT industry has risen 1.3%, driven by gains from SUNeVision Holdings of 3.5%. In the same time, Edianyun was down 13%. In the past year, the industry is down 25%. Looking forward, earnings are forecast to grow by 16% 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, 07 Jun 2023 | HK$52.3b | HK$58.4b | HK$2.0b | 10.2x | 26x | 0.9x |
| Fri, 05 May 2023 | HK$51.8b | HK$57.6b | HK$1.9b | 10x | 26.9x | 0.9x |
| Sun, 02 Apr 2023 | HK$52.8b | HK$57.8b | HK$1.9b | 13.4x | 28.1x | 0.9x |
| Tue, 28 Feb 2023 | HK$120.1b | HK$74.3b | HK$4.9b | 12.1x | 24.4x | 1.6x |
| Thu, 26 Jan 2023 | HK$126.8b | HK$75.1b | HK$5.0b | 11.4x | 25.6x | 1.7x |
| Sat, 24 Dec 2022 | HK$119.9b | HK$73.8b | HK$4.9b | 11.4x | 24.6x | 1.6x |
| Mon, 21 Nov 2022 | HK$110.9b | HK$72.9b | HK$4.8b | 11.2x | 23.2x | 1.5x |
| Wed, 19 Oct 2022 | HK$104.1b | HK$73.0b | HK$4.7b | 11.6x | 22x | 1.4x |
| Fri, 16 Sep 2022 | HK$108.2b | HK$74.1b | HK$4.8b | 12.4x | 22.4x | 1.5x |
| Sun, 14 Aug 2022 | HK$118.8b | HK$74.0b | HK$4.8b | 12x | 24.7x | 1.6x |
| Tue, 12 Jul 2022 | HK$124.4b | HK$73.9b | HK$7.5b | 11.6x | 16.5x | 1.7x |
| Thu, 09 Jun 2022 | HK$120.1b | HK$74.0b | HK$7.6b | 11.4x | 15.9x | 1.6x |
| Sat, 07 May 2022 | HK$112.0b | HK$74.3b | HK$7.5b | 11.7x | 14.8x | 1.5x |
| Mon, 04 Apr 2022 | HK$117.2b | HK$76.0b | HK$7.7b | 12x | 15.3x | 1.5x |
| Wed, 02 Mar 2022 | HK$131.7b | HK$73.6b | HK$8.4b | 12x | 15.8x | 1.8x |
| Fri, 28 Jan 2022 | HK$132.5b | HK$73.3b | HK$8.3b | 12.5x | 16x | 1.8x |
| Sun, 26 Dec 2021 | HK$136.8b | HK$73.1b | HK$8.3b | 12.9x | 16.6x | 1.9x |
| Tue, 23 Nov 2021 | HK$146.4b | HK$72.4b | HK$8.3b | 11.8x | 17.6x | 2x |
| Thu, 21 Oct 2021 | HK$157.2b | HK$72.2b | HK$8.3b | 11.6x | 18.9x | 2.2x |
| Sat, 18 Sep 2021 | HK$153.6b | HK$71.8b | HK$8.2b | 12.1x | 18.8x | 2.1x |
| Mon, 16 Aug 2021 | HK$160.8b | HK$72.1b | HK$8.1b | 11.1x | 19.8x | 2.2x |
| Mon, 31 May 2021 | HK$165.1b | HK$69.0b | HK$6.1b | 14.6x | 27.1x | 2.4x |
| Thu, 04 Mar 2021 | HK$185.7b | HK$66.5b | HK$4.1b | 15.5x | 45.2x | 2.8x |
| Sun, 06 Dec 2020 | HK$148.3b | HK$64.7b | HK$3.8b | 13x | 38.9x | 2.3x |
| Wed, 09 Sep 2020 | HK$133.8b | HK$62.9b | HK$3.8b | 11.7x | 35.3x | 2.1x |
Price to Earnings Ratio
28.2x
Current Industry PE
- Investors are relatively neutral on the Hong Kong IT industry at the moment, indicating that they anticipate long term growth rates to remain steady.
- The industry is trading close to its 3-year average PE ratio of 25.0x.
- The 3-year average PS ratio of 1.9x is higher than the industry's current PS ratio of 0.90x.
Past Earnings Growth
- The earnings for companies in the IT industry have declined 19% per year over the last three years,
- Revenues have also declined 2.5% per year.
- This means overall sales from these companies are declining and profits are subsequently falling as well.
Industry Trends
Which industries have driven the changes within the Hong Kong Tech industry?
| HK Market | 1.46% | |
| Tech | 0.70% | |
| IT | 1.34% | |
| Data Processing Services | 5.89% | |
| Internet Services and Infrastructure | 3.33% | |
| IT Consulting | 0.26% | |
Industry PE
- Investors are most optimistic about the Data Processing Services industry which is trading above its 3-year average PE ratio of 27.4x.
- It looks like they are confident that earnings will grow faster in the future than they have historically.
- Investors are most pessimistic about the Internet Services and Infrastructure industry, which is trading below its 3-year average of 35.5x.
Forecasted Growth
- Analysts are most optimistic on the IT Consulting industry, expecting annual earnings growth of 20% over the next 5 years.
- This is better than its past earnings decline of 16% 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$4.33 | 3.1% +HK$527.7m | -30.2% | PE20.2x | |
| 354 Chinasoft International | HK$4.81 | 1.5% +HK$170.4m | -35.0% | PE15.6x | |
| 9600 Newlink Technology | HK$1.76 | 9.3% +HK$118.0m | -29.3% | PE71.9x | |
| 1204 BoardWare Intelligence Technology | HK$3.00 | 4.9% +HK$70.0m | n/a | PE461.3x | |
| 1782 Vixtel Technologies Holdings | HK$4.10 | 1.5% +HK$45.7m | 412.5% | PS27.3x |
