Newborn Town Inc. (HKG:9911) Looks Inexpensive After Falling 26% But Perhaps Not Attractive Enough
Jul 25
Hong Kong (HSI) Software Industry Analysis
UpdatedJul 31, 2024
DataAggregated Company Financials
Companies36
- 7D-4.5%
- 3M-17.4%
- 1Y-48.8%
- YTD-26.5%
Over the last 7 days, the Software industry has dropped 4.5%, driven by a pullback from SenseTime Group of 5.0%. Overall the industry is down 49% in 12 months. Earnings are forecast to grow by 58% 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 |
|---|---|---|---|---|---|---|
| Wed, 31 Jul 2024 | HK$121.9b | HK$58.6b | -HK$13,827,067,061.01 | 12.8x | -8.8x | 2.1x |
| Fri, 28 Jun 2024 | HK$144.8b | HK$58.4b | -HK$13,787,960,059.15 | 13.2x | -10.5x | 2.5x |
| Sun, 26 May 2024 | HK$152.1b | HK$58.7b | -HK$16,324,568,269.78 | 14x | -9.3x | 2.6x |
| Tue, 23 Apr 2024 | HK$106.6b | HK$58.5b | -HK$15,525,294,599.62 | 13.4x | -6.9x | 1.8x |
| Thu, 21 Mar 2024 | HK$116.2b | HK$54.8b | -HK$15,178,178,769.03 | 12x | -7.7x | 2.1x |
| Sat, 17 Feb 2024 | HK$103.4b | HK$55.9b | -HK$15,806,742,541.93 | 9.9x | -6.5x | 1.9x |
| Mon, 15 Jan 2024 | HK$152.7b | HK$63.9b | -HK$15,208,853,238.00 | 9.8x | -10x | 2.4x |
| Wed, 13 Dec 2023 | HK$150.4b | HK$63.1b | -HK$15,272,336,182.00 | 12.4x | -9.8x | 2.4x |
| Fri, 10 Nov 2023 | HK$150.4b | HK$61.5b | -HK$9,181,999,447.00 | 11.9x | -16.4x | 2.4x |
| Sun, 08 Oct 2023 | HK$130.7b | HK$53.3b | -HK$9,666,264,547.00 | 12.5x | -13.5x | 2.5x |
| Tue, 05 Sep 2023 | HK$162.7b | HK$53.5b | -HK$9,723,444,868.00 | 15.1x | -16.7x | 3x |
| Thu, 03 Aug 2023 | HK$173.1b | HK$50.4b | -HK$10,676,483,404.00 | 20.5x | -16.2x | 3.4x |
| Sat, 01 Jul 2023 | HK$173.1b | HK$50.1b | -HK$10,585,351,508.00 | 17.8x | -16.4x | 3.5x |
| Mon, 29 May 2023 | HK$179.5b | HK$51.3b | -HK$10,905,656,994.00 | 15.9x | -16.5x | 3.5x |
| Wed, 26 Apr 2023 | HK$196.9b | HK$52.4b | -HK$11,622,577,532.00 | 16.5x | -16.9x | 3.8x |
| Fri, 24 Mar 2023 | HK$229.5b | HK$51.4b | -HK$26,164,915,808.00 | 13.8x | -8.8x | 4.5x |
| Sun, 19 Feb 2023 | HK$228.7b | HK$50.2b | -HK$26,362,361,175.00 | 17x | -8.7x | 4.6x |
| Tue, 17 Jan 2023 | HK$232.4b | HK$50.9b | -HK$26,784,133,552.00 | 17.4x | -8.7x | 4.6x |
| Thu, 15 Dec 2022 | HK$227.6b | HK$49.4b | -HK$25,790,768,161.00 | 14.9x | -8.8x | 4.6x |
| Sat, 12 Nov 2022 | HK$185.7b | HK$48.3b | -HK$25,433,475,469.00 | 17.4x | -7.3x | 3.8x |
| Mon, 10 Oct 2022 | HK$154.7b | HK$48.9b | -HK$25,782,980,534.00 | 19.5x | -6x | 3.2x |
| Wed, 07 Sep 2022 | HK$207.2b | HK$49.9b | -HK$26,402,174,153.00 | 13.5x | -7.8x | 4.2x |
| Fri, 05 Aug 2022 | HK$221.2b | HK$48.5b | -HK$42,070,801,398.00 | 12.6x | -5.3x | 4.6x |
| Sun, 03 Jul 2022 | HK$276.6b | HK$42.5b | -HK$40,917,813,962.00 | 13.6x | -6.8x | 6.5x |
| Tue, 31 May 2022 | HK$306.4b | HK$42.0b | -HK$40,933,511,214.00 | 13x | -7.5x | 7.3x |
| Thu, 28 Apr 2022 | HK$291.0b | HK$42.8b | -HK$41,280,379,821.00 | 16.6x | -7x | 6.8x |
| Sat, 26 Mar 2022 | HK$154.3b | HK$35.3b | -HK$19,036,544,599.00 | 13.3x | -8.1x | 4.4x |
| Mon, 21 Feb 2022 | HK$192.7b | HK$34.1b | -HK$19,232,714,901.00 | 14.6x | -10x | 5.6x |
| Wed, 19 Jan 2022 | HK$201.1b | HK$33.1b | -HK$18,457,304,252.00 | 14x | -10.9x | 6.1x |
| Fri, 17 Dec 2021 | HK$210.9b | HK$33.0b | -HK$18,426,083,480.00 | 13.4x | -11.4x | 6.4x |
| Sun, 14 Nov 2021 | HK$245.2b | HK$32.9b | -HK$18,435,598,978.00 | 13.7x | -13.3x | 7.5x |
| Tue, 12 Oct 2021 | HK$259.1b | HK$32.7b | -HK$18,107,030,800.00 | 15.1x | -14.3x | 7.9x |
| Thu, 09 Sep 2021 | HK$312.7b | HK$39.8b | -HK$16,762,536,486.73 | 13.4x | -18.7x | 7.8x |
| Sat, 07 Aug 2021 | HK$303.4b | HK$39.9b | -HK$16,758,870,486.73 | 14.1x | -18.1x | 7.6x |
Price to Earnings Ratio
-18.1x
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 4.4x is higher than the industry's current PS ratio of 2.1x.
Past Earnings Growth
- The earnings for companies in the Software industry have improved over the last three years.
- Revenues for these companies have grown 14% per year.
- This means that more sales are being generated by these companies overall, and subsequently losses are decreasing too.
Industry Trends
Which industries have driven the changes within the Hong Kong Tech industry?
| HK Market | -2.74% | |
| Tech | -6.04% | |
| Software | -4.45% | |
| Application Software | -4.15% | |
| Systems Software | -9.42% | |
Industry PE
Forecasted Growth
- Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 68% over the next 5 years.
- This is better than its past earnings growth rate of 16% per year.
- In contrast, the Application Software industry is expected to see its earnings grow by 58% 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$1.21 | 4.3% +HK$1.8b | -31.3% | PS11.6x | |
| 2556 Marketingforce Management | HK$102.40 | 6.4% +HK$1.5b | n/a | PS18.1x | |
| 268 Kingdee International Software Group | HK$6.27 | 3.8% +HK$824.6m | -51.2% | PS3.7x | |
| 6682 Beijing Fourth Paradigm Technology | HK$48.60 | 3.4% +HK$744.8m | n/a | PS5x | |
| 596 Inspur Digital Enterprise Technology | HK$3.15 | 9.8% +HK$319.7m | 15.8% | PE16.5x |
