Ruihe Data Technology Holdings Limited (HKG:3680) Shares May Have Slumped 27% But Getting In Cheap Is Still Unlikely
Jul 14
Hong Kong (HSI) IT Industry Analysis
UpdatedAug 03, 2024
DataAggregated Company Financials
Companies35
- 7D-0.2%
- 3M-7.9%
- 1Y-29.9%
- YTD-14.9%
In the last week, the IT industry is flat overall, with Shanghai Voicecomm Information Technology standing out by going down 11%. Unfortunately though, the industry is down 29% over the past 12 months. As for the next few years, earnings are expected to grow by 39% 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 |
|---|---|---|---|---|---|---|
| Sat, 03 Aug 2024 | HK$48.4b | HK$60.0b | -HK$1,294,349,924.17 | 13x | -37.4x | 0.8x |
| Mon, 01 Jul 2024 | HK$46.2b | HK$57.7b | -HK$1,174,666,029.92 | 13x | -39.3x | 0.8x |
| Wed, 29 May 2024 | HK$48.5b | HK$58.6b | -HK$1,305,857,902.02 | 14.6x | -37.1x | 0.8x |
| Fri, 26 Apr 2024 | HK$44.2b | HK$58.4b | -HK$1,332,425,848.66 | 13.1x | -33.2x | 0.8x |
| Sun, 24 Mar 2024 | HK$44.2b | HK$58.7b | HK$937.5m | 9.6x | 47.2x | 0.8x |
| Tue, 20 Feb 2024 | HK$44.1b | HK$58.5b | HK$1.2b | 10.4x | 36.9x | 0.8x |
| Thu, 18 Jan 2024 | HK$48.0b | HK$59.6b | HK$1.1b | 10.2x | 44.2x | 0.8x |
| Sat, 16 Dec 2023 | HK$55.7b | HK$60.6b | HK$1.1b | 11.9x | 50.2x | 0.9x |
| Mon, 13 Nov 2023 | HK$54.7b | HK$59.3b | HK$1.1b | 11.4x | 48.4x | 0.9x |
| Wed, 11 Oct 2023 | HK$56.3b | HK$59.2b | HK$1.1b | 10.4x | 53.6x | 1x |
| Fri, 08 Sep 2023 | HK$56.9b | HK$57.0b | HK$901.5m | 11x | 63.2x | 1x |
| Sun, 06 Aug 2023 | HK$56.5b | HK$58.1b | HK$2.0b | 12.1x | 27.7x | 1x |
| Tue, 04 Jul 2023 | HK$52.1b | HK$57.7b | HK$2.0b | 12.1x | 25.6x | 0.9x |
| Thu, 01 Jun 2023 | HK$51.3b | HK$58.5b | HK$2.0b | 10.1x | 25.3x | 0.9x |
| Sat, 29 Apr 2023 | HK$51.8b | HK$57.6b | HK$1.9b | 10.2x | 26.9x | 0.9x |
| Mon, 27 Mar 2023 | HK$56.1b | HK$60.9b | HK$3.0b | 11.7x | 18.7x | 0.9x |
| Wed, 22 Feb 2023 | HK$121.2b | HK$74.6b | HK$4.9b | 11.2x | 24.6x | 1.6x |
| Fri, 20 Jan 2023 | HK$125.6b | HK$75.0b | HK$5.0b | 11.4x | 25.4x | 1.7x |
| Sun, 18 Dec 2022 | HK$118.2b | HK$73.8b | HK$4.9b | 11.2x | 24.3x | 1.6x |
| Tue, 15 Nov 2022 | HK$110.5b | HK$73.0b | HK$4.8b | 11.1x | 23x | 1.5x |
| Thu, 13 Oct 2022 | HK$98.7b | HK$73.1b | HK$4.7b | 10.9x | 20.8x | 1.3x |
| Sat, 10 Sep 2022 | HK$111.2b | HK$74.1b | HK$4.8b | 12.6x | 23.1x | 1.5x |
| Mon, 08 Aug 2022 | HK$117.4b | HK$74.1b | HK$7.5b | 11.5x | 15.6x | 1.6x |
| Wed, 06 Jul 2022 | HK$127.5b | HK$73.9b | HK$7.5b | 11.6x | 17x | 1.7x |
| Fri, 03 Jun 2022 | HK$120.5b | HK$73.9b | HK$7.6b | 11.6x | 16x | 1.6x |
| Sun, 01 May 2022 | HK$115.7b | HK$74.6b | HK$7.6b | 12.3x | 15.3x | 1.6x |
| Tue, 29 Mar 2022 | HK$118.0b | HK$72.6b | HK$7.3b | 11.8x | 16.3x | 1.6x |
| Thu, 24 Feb 2022 | HK$132.8b | HK$73.6b | HK$8.3b | 12.7x | 16x | 1.8x |
| Sat, 22 Jan 2022 | HK$140.0b | HK$73.1b | HK$8.3b | 13.2x | 16.9x | 1.9x |
| Mon, 20 Dec 2021 | HK$141.6b | HK$73.0b | HK$8.3b | 12.8x | 17.2x | 1.9x |
| Wed, 17 Nov 2021 | HK$149.8b | HK$72.5b | HK$8.3b | 11.8x | 18x | 2.1x |
| Fri, 15 Oct 2021 | HK$150.0b | HK$72.0b | HK$8.3b | 11.6x | 18.1x | 2.1x |
| Sun, 12 Sep 2021 | HK$160.1b | HK$71.7b | HK$8.2b | 12.5x | 19.6x | 2.2x |
| Tue, 10 Aug 2021 | HK$161.9b | HK$72.1b | HK$8.1b | 11.9x | 19.9x | 2.2x |
Price to Earnings Ratio
19.9x
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 1.3x is higher than the industry's current PS ratio of 0.82x.
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 6.1% per year, which is driving profits down.
Industry Trends
Which industries have driven the changes within the Hong Kong Tech industry?
| HK Market | -0.018% | |
| Tech | -2.21% | |
| IT | -0.21% | |
| Internet Services and Infrastructure | 2.41% | |
| IT Consulting | -1.16% | |
| Data Processing Services | -9.86% | |
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 31.0x.
- 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 60% over the next 5 years.
- This is better than its past earnings growth rate of 9.2% 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$2.75 | 2.6% +HK$284.1m | -30.7% | PE12.3x | |
| 9600 Newlink Technology | HK$1.90 | 13.8% +HK$217.1m | 22.6% | PS6.7x | |
| 1402 i-Control Holdings | HK$0.32 | 18.9% +HK$52.5m | 14.5% | PS2.5x | |
| 3680 Ruihe Data Technology Holdings | HK$1.20 | 6.2% +HK$46.3m | 48.1% | PS2x | |
| 2512 Cloud Factory Technology Holdings | HK$3.69 | 2.5% +HK$41.4m | n/a | PE111.8x |
