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Hong Kong (HSI) Telecom Sector Analysis

UpdatedDec 06, 2023
DataAggregated Company Financials
Companies143
  • 7D-2.3%
  • 3M-5.9%
  • 1Y2.3%
  • YTD-4.3%

Over the last 7 days, the Telecom industry has dropped 2.3%, driven by a pullback from Tencent Holdings of 3.4%. Meanwhile, Meitu actually outperformed within the industry, gaining 6.3% in the last week. As for the longer term, the industry's performance has been flat for the past year. Earnings are forecast to grow by 10.0% annually.

Sector Valuation and Performance

Has the Hong Kong Telecom Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 06 Dec 2023HK$5.7tHK$3.2tHK$425.8b12.5x13.3x1.8x
Fri, 03 Nov 2023HK$5.5tHK$3.1tHK$409.3b10.5x13.4x1.8x
Sun, 01 Oct 2023HK$5.9tHK$3.1tHK$408.4b11.5x14.4x1.9x
Tue, 29 Aug 2023HK$6.1tHK$3.1tHK$405.2b11.7x15x2x
Thu, 27 Jul 2023HK$6.3tHK$3.1tHK$388.6b13.2x16.1x2x
Sat, 24 Jun 2023HK$6.1tHK$3.1tHK$388.1b14x15.7x2x
Mon, 22 May 2023HK$6.2tHK$3.1tHK$391.3b14.8x15.9x2x
Wed, 19 Apr 2023HK$6.7tHK$3.1tHK$393.6b15.5x17.1x2.1x
Fri, 17 Mar 2023HK$6.2tHK$3.1tHK$383.4b11x16.2x2x
Sun, 12 Feb 2023HK$6.4tHK$3.1tHK$392.5b11.7x16.4x2x
Tue, 10 Jan 2023HK$6.1tHK$3.1tHK$392.0b11.8x15.5x1.9x
Thu, 08 Dec 2022HK$5.3tHK$3.0tHK$378.7b9.8x14x1.8x
Sat, 05 Nov 2022HK$4.4tHK$2.9tHK$368.1b10.2x12x1.5x
Mon, 03 Oct 2022HK$4.8tHK$3.0tHK$375.0b11.1x12.7x1.6x
Wed, 31 Aug 2022HK$5.6tHK$3.0tHK$383.6b11.9x14.5x1.8x
Fri, 29 Jul 2022HK$5.6tHK$3.0tHK$400.7b9.2x13.9x1.8x
Sun, 26 Jun 2022HK$6.2tHK$3.1tHK$405.3b10.3x15.2x2x
Tue, 24 May 2022HK$5.8tHK$3.1tHK$344.8b10.6x16.8x1.9x
Thu, 21 Apr 2022HK$6.0tHK$3.1tHK$385.6b10.9x15.6x1.9x
Sat, 19 Mar 2022HK$6.2tHK$3.1tHK$325.2b9.7x19x2x
Mon, 14 Feb 2022HK$7.4tHK$3.1tHK$322.2b11.1x22.8x2.4x
Wed, 12 Jan 2022HK$7.1tHK$3.1tHK$321.0b10x22x2.3x
Fri, 10 Dec 2021HK$7.0tHK$3.1tHK$322.9b10.9x21.8x2.3x
Sun, 07 Nov 2021HK$7.1tHK$3.0tHK$291.6b11.3x24.2x2.3x
Tue, 05 Oct 2021HK$6.8tHK$3.0tHK$284.3b10.8x24.1x2.3x
Thu, 02 Sep 2021HK$7.3tHK$2.9tHK$281.4b13.4x26x2.5x
Sat, 31 Jul 2021HK$7.0tHK$2.9tHK$281.4b11.8x25x2.4x
Tue, 04 May 2021HK$9.2tHK$2.8tHK$218.7b13.7x42.1x3.3x
Fri, 05 Feb 2021HK$8.5tHK$2.6tHK$360.6b14x23.5x3.2x
Price to Earnings Ratio

20.1x


Total Market Cap: HK$7.2tTotal Earnings: HK$360.7bTotal Revenue: HK$2.6tTotal Market Cap vs Earnings and Revenue0%0%0%
Hong Kong Telecom Sector Price to Earnings3Y Average 20x20222023
Current Industry PE
  • Investors are pessimistic on the Hong Kong Communication Services industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The industry is trading at a PE ratio of 13.3x which is lower than its 3-year average PE of 20.0x.
  • The 3-year average PS ratio of 2.2x is higher than the industry's current PS ratio of 1.8x.
Past Earnings Growth
  • The earnings for companies in the Communication Services industry have grown 5.7% per year over the last three years.
  • Revenues for these companies have grown 6.8% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the Hong Kong Telecom sector?

HK Market-4.20%
Telecom-2.33%
Telecom Services and Carriers-0.44%
Wireless Telecom-0.64%
Interactive Media and Services-3.40%
Media-4.03%
Entertainment-4.58%
Industry PE
  • Investors are most optimistic about the Media industry which is trading above its 3-year average PE ratio.
    • Analysts are expecting annual earnings growth of 24.1%, which is higher than its past year's earnings decline of 11.8% per year.
Forecasted Growth
  • Analysts are most optimistic on the Entertainment industry, expecting annual earnings growth of 52% over the next 5 years.
  • This is better than its past earnings decline of 19% per year.
  • In contrast, the Wireless Telecom industry is expected to see its earnings grow by 6.5% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
728 China TelecomHK$3.540.6%
+HK$1.8b
11.0%PE9.8x
1357 MeituHK$3.576.3%
+HK$933.9m
197.5%PE24.7x
777 NetDragon Websoft HoldingsHK$14.765.1%
+HK$382.5m
-9.8%PE9.3x
6820 FriendTimesHK$1.375.4%
+HK$152.7m
41.2%PE159.4x
6610 Flowing Cloud TechnologyHK$1.924.3%
+HK$144.0m
-56.6%PE11.7x
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762

HK$4.87

China Unicom (Hong Kong)

7D

-1.6%

1Y

8.7%

6988

HK$0.23

Joy Spreader Group

7D

32.2%

1Y

-86.5%

2458

HK$5.05

Gala Technology Holding

7D

25.0%

1Y

n/a

6610

HK$1.92

Flowing Cloud Technology

7D

4.3%

1Y

-56.6%

700

HK$308.80

Tencent Holdings

7D

-2.6%

1Y

2.9%

3888

HK$24.35

Kingsoft

7D

-6.5%

1Y

-6.5%

6820

HK$1.37

FriendTimes

7D

5.4%

1Y

41.2%

772

HK$25.60

China Literature

7D

-5.7%

1Y

-8.9%

728

HK$3.54

China Telecom

7D

0.6%

1Y

11.0%