Narrative Update • Jun 02
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- 7D-4.7%
- 3M-17.7%
- 1Y-24.8%
- YTD-20.1%
Over the last 7 days, the Software industry has dropped 1.8%, driven by a pullback from Knowledge Atlas Technology of 12%. On the other hand Beijing 51World Digital Twin Technology is actually up 5.9%. Overall the industry is down 21% in 12 months. As for the next few years, earnings are expected to grow by 87% 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 |
|---|---|---|---|---|---|---|
| Fri, 05 Jun 2026 | HK$485.0b | HK$87.2b | -HK$25,748,621,859.13 | 31.4x | -18.8x | 5.6x |
| Sun, 03 May 2026 | HK$465.8b | HK$82.6b | -HK$25,640,447,189.23 | 28.6x | -18.2x | 5.6x |
| Tue, 31 Mar 2026 | HK$396.8b | HK$79.4b | -HK$25,003,259,458.72 | 25.3x | -15.9x | 5x |
| Thu, 26 Feb 2026 | HK$461.3b | HK$69.4b | -HK$8,326,562,119.85 | 18.6x | -55.4x | 6.6x |
| Sat, 24 Jan 2026 | HK$466.7b | HK$67.7b | -HK$8,026,533,758.28 | 21.5x | -58.1x | 6.9x |
| Mon, 22 Dec 2025 | HK$382.4b | HK$66.1b | -HK$7,915,720,851.98 | 16.8x | -48.3x | 5.8x |
| Wed, 19 Nov 2025 | HK$395.5b | HK$67.3b | -HK$8,606,132,597.70 | 18.2x | -46x | 5.9x |
| Fri, 17 Oct 2025 | HK$438.6b | HK$67.1b | -HK$8,586,859,915.85 | 19.2x | -51.1x | 6.5x |
| Sun, 14 Sep 2025 | HK$470.2b | HK$67.1b | -HK$8,630,085,586.23 | 24.3x | -54.5x | 7x |
| Tue, 12 Aug 2025 | HK$371.2b | HK$62.0b | -HK$10,739,328,453.10 | 29.1x | -34.6x | 6x |
| Thu, 10 Jul 2025 | HK$324.0b | HK$63.5b | -HK$10,536,063,554.74 | 27x | -30.8x | 5.1x |
| Sat, 07 Jun 2025 | HK$301.6b | HK$62.5b | -HK$10,649,819,878.67 | 27.2x | -28.3x | 4.8x |
| Mon, 05 May 2025 | HK$313.3b | HK$61.5b | -HK$10,410,226,651.70 | 25.3x | -30.1x | 5.1x |
| Wed, 02 Apr 2025 | HK$304.4b | HK$61.8b | -HK$10,458,714,808.52 | 25.4x | -29.1x | 4.9x |
| Fri, 28 Feb 2025 | HK$243.0b | HK$59.0b | -HK$11,895,558,697.13 | 32.8x | -20.4x | 4.1x |
| Sun, 26 Jan 2025 | HK$205.7b | HK$59.3b | -HK$11,954,599,756.98 | 23x | -17.2x | 3.5x |
| Tue, 24 Dec 2024 | HK$219.8b | HK$63.0b | -HK$11,312,333,220.01 | 20.3x | -19.4x | 3.5x |
| Thu, 21 Nov 2024 | HK$203.9b | HK$63.6b | -HK$11,358,979,631.54 | 17.2x | -18x | 3.2x |
| Sat, 19 Oct 2024 | HK$185.2b | HK$62.8b | -HK$14,366,157,998.37 | 17.9x | -12.9x | 2.9x |
| Mon, 16 Sep 2024 | HK$136.0b | HK$63.1b | -HK$14,438,258,733.21 | 11.1x | -9.4x | 2.2x |
| Wed, 14 Aug 2024 | HK$119.9b | HK$59.0b | -HK$13,989,464,120.50 | 10.9x | -8.6x | 2x |
| Fri, 12 Jul 2024 | HK$145.3b | HK$58.4b | -HK$13,794,818,928.80 | 13.1x | -10.5x | 2.5x |
| Sun, 09 Jun 2024 | HK$152.0b | HK$58.7b | -HK$16,312,217,654.99 | 14.8x | -9.3x | 2.6x |
| Tue, 07 May 2024 | HK$165.4b | HK$58.6b | -HK$15,547,761,130.66 | 13.8x | -10.6x | 2.8x |
| Thu, 04 Apr 2024 | HK$127.6b | HK$58.5b | -HK$15,545,801,403.16 | 11.2x | -8.2x | 2.2x |
| Sat, 02 Mar 2024 | HK$109.1b | HK$55.4b | -HK$15,649,436,189.20 | 8.3x | -7x | 2x |
| Mon, 29 Jan 2024 | HK$142.3b | HK$64.0b | -HK$15,234,588,922.00 | 10.1x | -9.3x | 2.2x |
| Wed, 27 Dec 2023 | HK$143.2b | HK$63.4b | -HK$15,356,165,094.00 | 11.8x | -9.3x | 2.3x |
| Fri, 24 Nov 2023 | HK$162.1b | HK$62.3b | -HK$9,298,619,432.00 | 14.9x | -17.4x | 2.6x |
| Sun, 22 Oct 2023 | HK$128.3b | HK$53.2b | -HK$9,641,851,156.00 | 10.8x | -13.3x | 2.4x |
| Tue, 19 Sep 2023 | HK$143.1b | HK$53.3b | -HK$9,663,974,358.00 | 15.1x | -14.8x | 2.7x |
| Thu, 17 Aug 2023 | HK$160.4b | HK$50.2b | -HK$9,974,706,003.00 | 20.7x | -16.1x | 3.2x |
| Sat, 15 Jul 2023 | HK$172.6b | HK$50.8b | -HK$10,758,908,741.00 | 20.1x | -16x | 3.4x |
| Mon, 12 Jun 2023 | HK$182.0b | HK$50.9b | -HK$10,812,459,804.00 | 17.5x | -16.8x | 3.6x |
Price to Earnings Ratio
-16.8x
Current Industry PE
- Investors are optimistic on the Hong Kong Software industry, and appear confident in long term growth rates.
- The 3-year average PS ratio of 4.0x is lower than the industry's current PS ratio of 5.7x.
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 | 0.85% | |
| Tech | -1.12% | |
| Software | -4.75% | |
| Systems Software | -4.38% | |
| Application Software | -4.83% | |
Industry PE
Forecasted Growth
- Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 95% over the next 5 years.
- This is better than its past earnings growth rate of 68% per year.
- In contrast, the Application Software industry is expected to see its earnings grow by 86% 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 | |
|---|---|---|---|---|---|
| 6651 Beijing 51World Digital Twin Technology | HK$126.60 | 30.6% +HK$12.3b | n/a | PS130.3x | |
| 268 Kingdee International Software Group | HK$7.98 | 9.8% +HK$2.5b | -38.0% | PE262.1x | |
| 2013 Weimob | HK$1.36 | 7.9% +HK$413.2m | -22.7% | PS3.1x | |
| 9959 Linklogis | HK$2.20 | 8.4% +HK$314.6m | 37.5% | PS3.6x | |
| 9669 Beisen Holding | HK$3.67 | 8.9% +HK$219.0m | -49.6% | PS2.3x |
