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
UpdatedJul 18, 2024
DataAggregated Company Financials
Companies35
- 7D-0.08%
- 3M0.4%
- 1Y-22.3%
- YTD-12.4%
Over the last 7 days, the IT industry has remained flat, although notably Tianju Dihe (Suzhou) Data declined by 10.0%. As for the longer term, the industry has declined 22% in the last year. Looking forward, earnings are forecast to grow by 39% 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 |
|---|---|---|---|---|---|---|
| Fri, 19 Jul 2024 | HK$49.8b | HK$59.6b | -HK$1,283,408,119.51 | 13.7x | -38.8x | 0.8x |
| Sun, 16 Jun 2024 | HK$49.5b | HK$59.3b | -HK$1,288,452,704.62 | 15.2x | -38.4x | 0.8x |
| Tue, 14 May 2024 | HK$47.9b | HK$58.4b | -HK$1,331,716,603.40 | 14.7x | -36x | 0.8x |
| Thu, 11 Apr 2024 | HK$44.5b | HK$58.5b | -HK$1,330,580,096.35 | 13.3x | -33.4x | 0.8x |
| Sat, 09 Mar 2024 | HK$44.6b | HK$58.8b | HK$1.2b | 9.5x | 38.5x | 0.8x |
| Mon, 05 Feb 2024 | HK$42.5b | HK$59.6b | HK$1.1b | 10.6x | 39.2x | 0.7x |
| Wed, 03 Jan 2024 | HK$52.0b | HK$59.9b | HK$1.1b | 10.5x | 47.8x | 0.9x |
| Fri, 01 Dec 2023 | HK$57.4b | HK$60.4b | HK$1.1b | 11.9x | 51.8x | 1x |
| Sun, 29 Oct 2023 | HK$54.3b | HK$59.1b | HK$1.1b | 11.2x | 49.7x | 0.9x |
| Tue, 26 Sep 2023 | HK$57.3b | HK$58.9b | HK$997.5m | 12.4x | 57.5x | 1x |
| Thu, 24 Aug 2023 | HK$52.5b | HK$55.9b | HK$1.9b | 11.4x | 27.5x | 0.9x |
| Sat, 22 Jul 2023 | HK$50.7b | HK$58.1b | HK$2.0b | 12.3x | 24.8x | 0.9x |
| Mon, 19 Jun 2023 | HK$55.1b | HK$58.2b | HK$2.0b | 10x | 27.4x | 0.9x |
| Wed, 17 May 2023 | HK$51.3b | HK$57.4b | HK$1.9b | 7.6x | 26.4x | 0.9x |
| Fri, 14 Apr 2023 | HK$53.0b | HK$57.7b | HK$1.9b | 9.9x | 27.5x | 0.9x |
| Sun, 12 Mar 2023 | HK$114.8b | HK$74.7b | HK$4.9b | 11.1x | 23.2x | 1.5x |
| Tue, 07 Feb 2023 | HK$124.0b | HK$75.1b | HK$5.0b | 11.9x | 25x | 1.7x |
| Thu, 05 Jan 2023 | HK$128.5b | HK$74.4b | HK$4.9b | 11.2x | 26.1x | 1.7x |
| Sat, 03 Dec 2022 | HK$113.5b | HK$73.2b | HK$4.8b | 10.9x | 23.6x | 1.6x |
| Mon, 31 Oct 2022 | HK$97.1b | HK$72.7b | HK$4.7b | 11.1x | 20.6x | 1.3x |
| Wed, 28 Sep 2022 | HK$104.0b | HK$73.2b | HK$4.8b | 11.7x | 21.9x | 1.4x |
| Fri, 26 Aug 2022 | HK$115.1b | HK$72.6b | HK$4.9b | 11.8x | 23.6x | 1.6x |
| Sun, 24 Jul 2022 | HK$120.8b | HK$74.2b | HK$7.5b | 12x | 16.1x | 1.6x |
| Tue, 21 Jun 2022 | HK$120.4b | HK$73.6b | HK$7.5b | 11.4x | 16x | 1.6x |
| Thu, 19 May 2022 | HK$114.4b | HK$73.5b | HK$7.5b | 11.8x | 15.2x | 1.6x |
| Sat, 16 Apr 2022 | HK$118.9b | HK$75.9b | HK$7.7b | 12.3x | 15.5x | 1.6x |
| Mon, 14 Mar 2022 | HK$118.0b | HK$73.5b | HK$8.3b | 11.1x | 14.2x | 1.6x |
| Wed, 09 Feb 2022 | HK$135.4b | HK$73.1b | HK$8.3b | 13x | 16.4x | 1.9x |
| Fri, 07 Jan 2022 | HK$138.2b | HK$73.1b | HK$8.3b | n/a | 16.7x | 1.9x |
| Sun, 05 Dec 2021 | HK$142.8b | HK$73.0b | HK$8.3b | 11.3x | 17.3x | 2x |
| Tue, 02 Nov 2021 | HK$148.9b | HK$72.1b | HK$8.3b | 11.3x | 18x | 2.1x |
| Thu, 30 Sep 2021 | HK$150.4b | HK$71.8b | HK$8.3b | 11.6x | 18.2x | 2.1x |
| Sat, 28 Aug 2021 | HK$155.6b | HK$72.1b | HK$8.1b | 12.2x | 19.2x | 2.2x |
Price to Earnings Ratio
19.2x
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 0.83x.
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 | -0.35% | |
| Tech | -0.44% | |
| IT | -0.078% | |
| Internet Services and Infrastructure | 3.40% | |
| IT Consulting | -1.26% | |
| Data Processing Services | -2.14% | |
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 31.1x.
- 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 58% 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 | |
|---|---|---|---|---|---|
| 861 Digital China Holdings | HK$3.23 | 1.3% +HK$66.9m | 4.5% | PS0.3x | |
| 1075 Capinfo | HK$2.35 | 6.8% +HK$43.5m | -34.7% | PS0.4x | |
| 1686 SUNeVision Holdings | HK$2.70 | 0.4% +HK$40.6m | -31.6% | PE12.1x | |
| 1402 i-Control Holdings | HK$0.28 | 11.8% +HK$30.5m | -8.3% | PS2.2x | |
| 3680 Ruihe Data Technology Holdings | HK$1.01 | 3.1% +HK$19.8m | 24.7% | PS1.7x |
