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 29, 2024
DataAggregated Company Financials
Companies35
- 7D-1.1%
- 3M-4.8%
- 1Y-30.5%
- YTD-14.7%
Over the last 7 days, the IT industry has dropped 1.1%, driven by Chinasoft International declining 7.9%. In contrast, Shanghai Voicecomm Information Technology has gained 15%. However, the industry is down 30% over the past 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 |
|---|---|---|---|---|---|---|
| Mon, 29 Jul 2024 | HK$48.4b | HK$59.7b | -HK$1,278,764,802.37 | 12.2x | -37.9x | 0.8x |
| Wed, 26 Jun 2024 | HK$47.0b | HK$59.1b | -HK$1,271,142,129.10 | 13.8x | -37x | 0.8x |
| Fri, 24 May 2024 | HK$48.7b | HK$58.6b | -HK$1,306,655,204.27 | 14.6x | -37.3x | 0.8x |
| Sun, 21 Apr 2024 | HK$42.5b | HK$58.4b | -HK$1,328,316,127.10 | 12.7x | -32x | 0.7x |
| Tue, 19 Mar 2024 | HK$46.1b | HK$58.8b | HK$1.2b | 10x | 39.8x | 0.8x |
| Thu, 15 Feb 2024 | HK$43.3b | HK$58.6b | HK$1.2b | 10.6x | 36.2x | 0.7x |
| Sat, 13 Jan 2024 | HK$49.0b | HK$59.8b | HK$1.1b | 10.1x | 45.1x | 0.8x |
| Mon, 11 Dec 2023 | HK$54.0b | HK$60.2b | HK$1.1b | 12x | 48.7x | 0.9x |
| Wed, 08 Nov 2023 | HK$56.1b | HK$59.3b | HK$1.1b | 11.2x | 51.5x | 0.9x |
| Fri, 06 Oct 2023 | HK$55.9b | HK$59.0b | HK$997.7m | 11.6x | 56x | 0.9x |
| Sun, 03 Sep 2023 | HK$56.4b | HK$57.5b | HK$899.8m | 11.5x | 62.7x | 1x |
| Tue, 01 Aug 2023 | HK$56.8b | HK$58.2b | HK$2.0b | 11.9x | 27.8x | 1x |
| Thu, 29 Jun 2023 | HK$52.0b | HK$57.5b | HK$2.0b | 10.2x | 26.1x | 0.9x |
| Sat, 27 May 2023 | HK$50.5b | HK$58.7b | HK$2.0b | 9.9x | 24.8x | 0.9x |
| Mon, 24 Apr 2023 | HK$52.8b | HK$57.6b | HK$1.9b | 11.2x | 27.3x | 0.9x |
| Wed, 22 Mar 2023 | HK$54.2b | HK$60.9b | HK$3.0b | 11.6x | 18.3x | 0.9x |
| Fri, 17 Feb 2023 | HK$125.3b | HK$74.7b | HK$4.9b | 11.1x | 25.4x | 1.7x |
| Sun, 15 Jan 2023 | HK$127.9b | HK$75.4b | HK$5.0b | 11.1x | 25.7x | 1.7x |
| Tue, 13 Dec 2022 | HK$118.5b | HK$73.7b | HK$4.9b | 11.3x | 24.3x | 1.6x |
| Thu, 10 Nov 2022 | HK$106.1b | HK$72.9b | HK$4.7b | 12.1x | 22.6x | 1.5x |
| Sat, 08 Oct 2022 | HK$103.3b | HK$73.4b | HK$4.8b | 11.1x | 21.7x | 1.4x |
| Mon, 05 Sep 2022 | HK$112.4b | HK$74.4b | HK$4.8b | 12.6x | 23.2x | 1.5x |
| Wed, 03 Aug 2022 | HK$113.5b | HK$74.1b | HK$7.5b | 11.3x | 15.1x | 1.5x |
| Fri, 01 Jul 2022 | HK$129.8b | HK$73.9b | HK$7.5b | 11.7x | 17.3x | 1.8x |
| Sun, 29 May 2022 | HK$114.2b | HK$73.8b | HK$7.5b | 11.3x | 15.1x | 1.5x |
| Tue, 26 Apr 2022 | HK$111.3b | HK$75.2b | HK$7.6b | 12.3x | 14.6x | 1.5x |
| Thu, 24 Mar 2022 | HK$121.9b | HK$73.4b | HK$8.2b | 11x | 14.8x | 1.7x |
| Sat, 19 Feb 2022 | HK$135.1b | HK$73.3b | HK$8.3b | 12.7x | 16.3x | 1.8x |
| Mon, 17 Jan 2022 | HK$136.7b | HK$73.1b | HK$8.3b | 12.7x | 16.5x | 1.9x |
| Wed, 15 Dec 2021 | HK$143.4b | HK$73.1b | HK$8.3b | 12.2x | 17.4x | 2x |
| Fri, 12 Nov 2021 | HK$148.4b | HK$72.2b | HK$8.3b | 12.1x | 17.8x | 2.1x |
| Sun, 10 Oct 2021 | HK$148.0b | HK$71.9b | HK$8.3b | 11.6x | 17.9x | 2.1x |
| Tue, 07 Sep 2021 | HK$159.8b | HK$71.7b | HK$8.2b | 12.4x | 19.5x | 2.2x |
| Thu, 05 Aug 2021 | HK$155.8b | HK$72.1b | HK$8.1b | 12x | 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 0.81x.
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 | -1.88% | |
| Tech | -5.00% | |
| IT | -1.12% | |
| Internet Services and Infrastructure | -0.42% | |
| IT Consulting | -1.38% | |
| Data Processing Services | -14.88% | |
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 | |
|---|---|---|---|---|---|
| 2495 Shanghai Voicecomm Information Technology | HK$179.00 | 18.5% +HK$991.9m | n/a | PS7.2x | |
| 2479 Tianju Dihe (Suzhou) Data | HK$74.05 | 10.7% +HK$358.3m | n/a | n/a | |
| 3680 Ruihe Data Technology Holdings | HK$1.17 | 17.0% +HK$112.3m | 48.1% | PS2x | |
| 9600 Newlink Technology | HK$1.74 | 5.5% +HK$84.9m | 17.6% | PS6.2x | |
| 1782 International Business Digital Technology | HK$4.85 | 2.3% +HK$83.8m | -58.9% | PS28.6x |
