Improved Revenues Required Before Kinetix Systems Holdings Limited (HKG:8606) Stock's 30% Jump Looks Justified
Jul 03
Hong Kong (HSI) IT Industry Analysis
UpdatedJul 06, 2024
DataAggregated Company Financials
Companies34
- 7D-2.3%
- 3M-2.3%
- 1Y-24.6%
- YTD-15.0%
Over the last 7 days, the IT industry has dropped 2.3%, driven by declines in Digital China Holdings and Newlink Technology of 5.7% and 12%, respectively. The industry has fallen 25% in the last year. Looking forward, earnings are forecast to grow by 40% 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 |
|---|---|---|---|---|---|---|
| Sat, 06 Jul 2024 | HK$45.9b | HK$59.2b | -HK$1,253,946,535.12 | 12.5x | -36.6x | 0.8x |
| Mon, 03 Jun 2024 | HK$46.5b | HK$58.7b | -HK$1,309,915,737.88 | 13.3x | -35.5x | 0.8x |
| Wed, 01 May 2024 | HK$43.9b | HK$58.4b | -HK$1,333,281,610.49 | 13.2x | -32.9x | 0.8x |
| Fri, 29 Mar 2024 | HK$44.1b | HK$58.7b | HK$927.8m | 9.8x | 47.5x | 0.8x |
| Sun, 25 Feb 2024 | HK$46.4b | HK$58.6b | HK$1.2b | 9.3x | 39.4x | 0.8x |
| Tue, 23 Jan 2024 | HK$47.1b | HK$59.6b | HK$1.1b | 10.1x | 43.4x | 0.8x |
| Thu, 21 Dec 2023 | HK$54.0b | HK$60.4b | HK$1.1b | 11.2x | 48.8x | 0.9x |
| Sat, 18 Nov 2023 | HK$55.5b | HK$59.7b | HK$1.1b | 12x | 49.5x | 0.9x |
| Mon, 16 Oct 2023 | HK$56.7b | HK$59.2b | HK$1.1b | 10.8x | 51.9x | 1x |
| Wed, 13 Sep 2023 | HK$60.4b | HK$58.9b | HK$969.1m | 10.8x | 62.3x | 1x |
| Fri, 11 Aug 2023 | HK$53.0b | HK$57.9b | HK$2.1b | 11.8x | 25.3x | 0.9x |
| Sun, 09 Jul 2023 | HK$51.5b | HK$57.8b | HK$2.0b | 12.1x | 25.3x | 0.9x |
| Tue, 06 Jun 2023 | HK$53.1b | HK$58.4b | HK$2.0b | 10.2x | 26.4x | 0.9x |
| Thu, 04 May 2023 | HK$51.3b | HK$57.6b | HK$1.9b | 10.2x | 26.6x | 0.9x |
| Sat, 01 Apr 2023 | HK$52.8b | HK$57.8b | HK$1.9b | 13.4x | 28.1x | 0.9x |
| Mon, 27 Feb 2023 | HK$119.8b | HK$74.3b | HK$4.9b | 12.2x | 24.4x | 1.6x |
| Wed, 25 Jan 2023 | HK$126.8b | HK$75.1b | HK$5.0b | 11.4x | 25.6x | 1.7x |
| Fri, 23 Dec 2022 | HK$120.1b | HK$73.8b | HK$4.9b | 11.4x | 24.6x | 1.6x |
| Sun, 20 Nov 2022 | HK$110.9b | HK$72.9b | HK$4.8b | 11.2x | 23.2x | 1.5x |
| Tue, 18 Oct 2022 | HK$99.6b | HK$73.0b | HK$4.7b | 11.1x | 21x | 1.4x |
| Thu, 15 Sep 2022 | HK$108.4b | HK$74.3b | HK$4.8b | 12.4x | 22.4x | 1.5x |
| Sat, 13 Aug 2022 | HK$118.8b | HK$74.3b | HK$7.4b | 12x | 16x | 1.6x |
| Mon, 11 Jul 2022 | HK$126.8b | HK$73.9b | HK$7.5b | 11.7x | 16.9x | 1.7x |
| Wed, 08 Jun 2022 | HK$120.1b | HK$74.0b | HK$7.6b | 11.4x | 15.9x | 1.6x |
| Fri, 06 May 2022 | HK$114.5b | HK$74.6b | HK$7.6b | 11.7x | 15.1x | 1.5x |
| Sun, 03 Apr 2022 | HK$117.2b | HK$76.3b | HK$7.3b | 12.5x | 16.2x | 1.5x |
| Tue, 01 Mar 2022 | HK$130.2b | HK$73.6b | HK$8.4b | 12.1x | 15.6x | 1.8x |
| Thu, 27 Jan 2022 | HK$136.3b | HK$73.2b | HK$8.3b | 12.9x | 16.5x | 1.9x |
| Sat, 25 Dec 2021 | HK$136.8b | HK$73.0b | HK$8.3b | 12.9x | 16.6x | 1.9x |
| Mon, 22 Nov 2021 | HK$147.3b | HK$72.4b | HK$8.3b | 11.9x | 17.7x | 2x |
| Wed, 20 Oct 2021 | HK$156.2b | HK$72.0b | HK$8.3b | 11.6x | 18.9x | 2.2x |
| Fri, 17 Sep 2021 | HK$151.6b | HK$71.9b | HK$8.2b | 12.1x | 18.5x | 2.1x |
| Sun, 15 Aug 2021 | HK$162.1b | HK$72.1b | HK$8.1b | 11.2x | 19.9x | 2.2x |
Price to Earnings Ratio
19.8x
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 1.4x is higher than the industry's current PS ratio of 0.77x.
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 6.4% per year, which is driving profits down.
Industry Trends
Which industries have driven the changes within the Hong Kong Tech industry?
| HK Market | 0.13% | |
| Tech | -1.41% | |
| IT | -2.33% | |
| Data Processing Services | 6.97% | |
| Internet Services and Infrastructure | -0.016% | |
| IT Consulting | -3.17% | |
Industry PE
- Investors are most optimistic about the Data Processing Services industry which is trading above its 3-year average PE ratio of 31.1x.
- 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 59% over the next 5 years.
- This is better than its past earnings growth rate of 11% per year.
- In contrast, the Internet Services and Infrastructure industry is expected to see its earnings grow by 8.8% 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$2.57 | 1.2% +HK$121.8m | -35.8% | PE11.5x | |
| 2477 WellCell Holdings | HK$2.95 | 2.4% +HK$35.0m | n/a | PE67.3x | |
| 1460 ICO Group | HK$0.20 | 24.2% +HK$34.2m | 1.5% | PE10.5x | |
| 1204 BoardWare Intelligence Technology | HK$3.69 | 1.1% +HK$20.0m | 25.1% | PE409.8x | |
| 771 Automated Systems Holdings | HK$0.57 | 1.8% +HK$8.3m | -18.6% | PE3.6x |
