Narrative Update • Jul 15
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- 7D-2.6%
- 3M-42.4%
- 1Y-46.7%
- YTD-45.0%
Over the last 7 days, the Software industry has dropped 2.6%, driven by Z.AI declining 24%. Meanwhile, SenseTime Group actually outperformed within the industry, gaining 6.1% in the last week. Overall the industry is down 47% in 12 months. As for the next few years, earnings are expected to grow by 81% per annum.
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 |
|---|---|---|---|---|---|---|
| Wed, 22 Jul 2026 | HK$338.0b | HK$87.8b | -HK$26,025,068,013.79 | 27.4x | -13x | 3.9x |
| Fri, 19 Jun 2026 | HK$420.5b | HK$87.3b | -HK$25,778,664,564.80 | 31.6x | -16.3x | 4.8x |
| Sun, 17 May 2026 | HK$446.8b | HK$82.8b | -HK$25,700,977,926.43 | 27.7x | -17.4x | 5.4x |
| Tue, 14 Apr 2026 | HK$434.4b | HK$81.6b | -HK$25,123,198,731.26 | 28.7x | -17.3x | 5.3x |
| Thu, 12 Mar 2026 | HK$410.1b | HK$68.9b | -HK$8,442,579,080.69 | 12.2x | -48.6x | 5.9x |
| Sat, 07 Feb 2026 | HK$420.3b | HK$68.1b | -HK$8,074,429,130.40 | 19.8x | -52x | 6.2x |
| Mon, 05 Jan 2026 | HK$431.6b | HK$67.4b | -HK$7,981,305,789.05 | 21.2x | -54.1x | 6.4x |
| Wed, 03 Dec 2025 | HK$387.5b | HK$65.9b | -HK$7,888,376,066.16 | 16.9x | -49.1x | 5.9x |
| Fri, 31 Oct 2025 | HK$438.3b | HK$67.1b | -HK$8,588,106,480.35 | 19.9x | -51x | 6.5x |
| Sun, 28 Sep 2025 | HK$466.4b | HK$67.0b | -HK$8,591,826,002.16 | 22.1x | -54.3x | 7x |
| Tue, 26 Aug 2025 | HK$390.3b | HK$63.3b | -HK$7,567,770,030.56 | 24.5x | -51.6x | 6.2x |
| Thu, 24 Jul 2025 | HK$349.9b | HK$63.6b | -HK$10,563,084,036.63 | 26.2x | -33.1x | 5.5x |
| Sat, 21 Jun 2025 | HK$299.7b | HK$62.5b | -HK$10,554,200,824.01 | 28.1x | -28.4x | 4.8x |
| Mon, 19 May 2025 | HK$309.6b | HK$62.5b | -HK$10,592,183,953.13 | 26.9x | -29.2x | 5x |
| Wed, 16 Apr 2025 | HK$275.0b | HK$61.3b | -HK$10,356,620,462.41 | 26.6x | -26.6x | 4.5x |
| Fri, 14 Mar 2025 | HK$245.1b | HK$58.1b | -HK$11,597,489,235.96 | 25.6x | -21.1x | 4.2x |
| Sun, 09 Feb 2025 | HK$235.2b | HK$59.0b | -HK$11,886,981,185.59 | 26.2x | -19.8x | 4x |
| Tue, 07 Jan 2025 | HK$199.8b | HK$58.4b | -HK$11,869,264,970.43 | 19.7x | -16.8x | 3.4x |
| Thu, 05 Dec 2024 | HK$208.1b | HK$63.4b | -HK$11,383,164,121.60 | 18.4x | -18.3x | 3.3x |
| Sat, 02 Nov 2024 | HK$185.7b | HK$64.2b | -HK$14,745,883,299.61 | 16.8x | -12.6x | 2.9x |
| Mon, 30 Sep 2024 | HK$173.5b | HK$63.5b | -HK$14,564,037,233.64 | 18x | -11.9x | 2.7x |
| Wed, 28 Aug 2024 | HK$147.3b | HK$60.8b | -HK$15,270,157,934.25 | 11.2x | -9.6x | 2.4x |
| Fri, 26 Jul 2024 | HK$122.8b | HK$58.7b | -HK$13,857,258,385.92 | 12.6x | -8.9x | 2.1x |
| Sun, 23 Jun 2024 | HK$145.5b | HK$58.5b | -HK$16,276,391,774.89 | 13.9x | -8.9x | 2.5x |
| Tue, 21 May 2024 | HK$162.1b | HK$58.3b | -HK$15,474,444,508.41 | 14.5x | -10.5x | 2.8x |
| Thu, 18 Apr 2024 | HK$112.5b | HK$58.5b | -HK$15,525,779,178.50 | 13.5x | -7.2x | 1.9x |
| Sat, 16 Mar 2024 | HK$113.0b | HK$54.8b | -HK$15,406,580,999.09 | 11.1x | -7.3x | 2.1x |
| Mon, 12 Feb 2024 | HK$98.3b | HK$55.6b | -HK$15,720,201,595.79 | 9.9x | -6.3x | 1.8x |
| Wed, 10 Jan 2024 | HK$147.8b | HK$64.1b | -HK$15,266,512,882.00 | 10.5x | -9.7x | 2.3x |
| Fri, 08 Dec 2023 | HK$146.6b | HK$63.4b | -HK$15,351,002,082.00 | 12.4x | -9.5x | 2.3x |
| Sun, 05 Nov 2023 | HK$142.0b | HK$61.5b | -HK$9,175,137,846.00 | 11.9x | -15.5x | 2.3x |
| Tue, 03 Oct 2023 | HK$135.0b | HK$53.3b | -HK$9,666,149,409.00 | 11.9x | -14x | 2.5x |
| Thu, 31 Aug 2023 | HK$158.5b | HK$51.0b | -HK$9,801,138,476.00 | 14.9x | -16.2x | 3.1x |
| Sat, 29 Jul 2023 | HK$176.4b | HK$50.5b | -HK$10,705,601,750.00 | 20.5x | -16.5x | 3.5x |
Price to Earnings Ratio
-16.5x
Current Industry PE
- Investors are relatively neutral on the Hong Kong Software industry at the moment, indicating that they anticipate long term growth rates to remain steady.
- The industry is trading close to its 3-year average PS ratio of 4.1x.
Past Earnings Growth
- The earnings for companies in the Software industry have deteriorated over the last three years.
- Meanwhile revenues for these companies have grown 20% 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 caused losses to expand.
Industry Trends
Which industries have driven the changes within the Hong Kong Tech industry?
| HK Market | 3.06% | |
| Tech | -5.14% | |
| Software | -2.62% | |
| Application Software | -1.76% | |
| Systems Software | -7.74% | |
Industry PE
Forecasted Growth
- Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 96% over the next 5 years.
- This is roughly in line with its past earnings growth rate.
- In contrast, the Application Software industry is expected to see its earnings grow by 79% 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$1.40 | 6.1% +HK$3.4b | -12.5% | PS10.2x | |
| 2556 Marketingforce Management | HK$40.36 | 35.2% +HK$2.8b | -32.6% | PE104.8x | |
| 268 Kingdee International Software Group | HK$7.28 | 7.7% +HK$1.8b | -54.0% | PE237.6x | |
| 1384 Deepexi Technology | HK$37.50 | 13.4% +HK$1.5b | n/a | PS26.1x | |
| 6682 Phancy Group | HK$28.98 | 7.7% +HK$1.1b | -44.7% | PS2x |
