Slowing Rates Of Return At Linklogis (HKG:9959) Leave Little Room For Excitement
Nov 22
Hong Kong (HSI) Software Industry Analysis
UpdatedDec 08, 2022
DataAggregated Company Financials
Companies36
- 7D12.2%
- 3M4.9%
- 1Y-44.6%
- YTD-56.9%
Over the last 7 days, the Software industry has risen 12%, driven by gains from SenseTime Group of 15%. In the same time, Xuan Wu Cloud Technology Holdings was down 14%. In the past year, the industry is down 42%. Earnings are forecast to grow by 49% annually.
Industry Valuation and Performance
Has the Hong Kong Software Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 08 Dec 2022 | HK$209.5b | HK$49.2b | -HK$25,640,314,842.00 | 12.7x | -8.2x | 4.3x |
| Sat, 05 Nov 2022 | HK$163.0b | HK$47.9b | -HK$25,129,742,029.00 | 18.6x | -6.5x | 3.4x |
| Mon, 03 Oct 2022 | HK$155.1b | HK$48.9b | -HK$25,779,374,501.00 | 12.8x | -6x | 3.2x |
| Wed, 31 Aug 2022 | HK$213.6b | HK$48.6b | -HK$26,534,639,616.00 | 26.6x | -8x | 4.4x |
| Fri, 29 Jul 2022 | HK$232.1b | HK$48.4b | -HK$42,031,023,236.00 | 13x | -5.5x | 4.8x |
| Sun, 26 Jun 2022 | HK$363.4b | HK$42.1b | -HK$41,023,302,085.00 | 11.1x | -8.9x | 8.6x |
| Tue, 24 May 2022 | HK$309.6b | HK$42.0b | -HK$40,969,278,158.00 | 13.4x | -7.6x | 7.4x |
| Thu, 21 Apr 2022 | HK$312.8b | HK$43.6b | -HK$42,310,119,443.00 | 17.4x | -7.4x | 7.2x |
| Sat, 19 Mar 2022 | HK$153.5b | HK$35.3b | -HK$19,049,448,615.00 | 13x | -8.1x | 4.3x |
| Mon, 14 Feb 2022 | HK$192.5b | HK$34.0b | -HK$19,138,396,109.00 | 13.2x | -10.1x | 5.7x |
| Wed, 12 Jan 2022 | HK$193.7b | HK$33.0b | -HK$18,387,967,160.00 | 13.5x | -10.5x | 5.9x |
| Fri, 10 Dec 2021 | HK$220.2b | HK$33.1b | -HK$18,482,642,879.00 | 13.3x | -11.9x | 6.7x |
| Sun, 07 Nov 2021 | HK$232.2b | HK$32.9b | -HK$18,234,241,301.00 | 16x | -12.7x | 7.1x |
| Tue, 05 Oct 2021 | HK$250.6b | HK$32.7b | -HK$18,103,762,905.00 | 14.4x | -13.8x | 7.7x |
| Thu, 02 Sep 2021 | HK$318.2b | HK$39.9b | -HK$16,758,870,486.73 | 13.5x | -19x | 8x |
| Sat, 31 Jul 2021 | HK$307.1b | HK$39.9b | -HK$16,758,870,486.73 | 12.5x | -18.3x | 7.7x |
| Tue, 04 May 2021 | HK$419.6b | HK$37.8b | -HK$8,664,362,516.45 | 11.8x | -48.4x | 11.1x |
| Fri, 05 Feb 2021 | HK$431.7b | HK$34.2b | HK$69.6m | 13.1x | 6199x | 12.6x |
| Mon, 09 Nov 2020 | HK$267.6b | HK$36.4b | -HK$1,300,053,234.38 | 13.9x | -205.8x | 7.4x |
| Sun, 02 Aug 2020 | HK$201.4b | HK$32.1b | -HK$756,340,559.49 | 25.6x | -266.3x | 6.3x |
| Wed, 06 May 2020 | HK$119.6b | HK$27.3b | HK$230.1m | 15.5x | 519.6x | 4.4x |
| Sat, 08 Feb 2020 | HK$100.8b | HK$27.2b | HK$661.0m | 16.5x | 152.4x | 3.7x |
Price to Earnings Ratio
189.3x
Current Industry PE
- Investors are pessimistic on the Hong Kong Software industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The 3-year average PS ratio of 6.8x is higher than the industry's current PS ratio of 4.2x.
Past Earnings Growth
- Total earnings for the Software industry have declined over the last three years, with the industry now making a loss overall.
- Meanwhile revenues have grown 23% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the Hong Kong Tech industry?
| HK Market | 0.29% | |
| Tech | -0.24% | |
| Software | 12.18% | |
| Application Software | 12.51% | |
| Systems Software | 7.30% | |
Industry PE
Forecasted Growth
- Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 79% over the next 5 years.
- This is better than its past earnings decline of 13% per year.
- In contrast, the Application Software industry is expected to see its earnings grow by 47% 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 | |
|---|---|---|---|---|---|
| 20 SenseTime Group | HK$2.20 | 15.2% +HK$9.7b | n/a | PS14.8x | |
| 268 Kingdee International Software Group | HK$14.62 | 13.5% +HK$6.0b | -35.7% | PS10.2x | |
| 2013 Weimob | HK$5.25 | 20.4% +HK$2.3b | -39.1% | PS4.6x | |
| 596 Inspur International | HK$4.15 | 33.9% +HK$1.2b | -2.4% | PE59.5x | |
| 909 Ming Yuan Cloud Group Holdings | HK$6.47 | 7.7% +HK$853.6m | -70.9% | PS5.2x |
