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

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 14.7x which is lower than its 3-year average PE of 16.7x. The industry is trading close to its 3-year average PS ratio of 2.3x.

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

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 35.0%, which is higher than its past year's earnings decline of 5.5% per year. Investors are most pessimistic about the Wireless Telecom industry, which is trading close to its 3-year average of 11.2x.

Hong Kong (HSI) Telecom Sector Analysis

Date	Market Cap	Revenue	Earnings	PE	Absolute PE	PS
Fri, 07 Aug 2026	HK$8.5t	HK$3.9t	HK$588.1b	11.9x	14.4x	2.2x
Sun, 05 Jul 2026	HK$7.8t	HK$3.9t	HK$584.8b	11.4x	13.3x	2x
Tue, 02 Jun 2026	HK$8.1t	HK$3.9t	HK$585.5b	11.6x	13.8x	2.1x
Thu, 30 Apr 2026	HK$8.5t	HK$3.8t	HK$567.7b	12.7x	15x	2.2x
Sat, 28 Mar 2026	HK$8.4t	HK$3.8t	HK$560.4b	13.1x	15x	2.2x
Mon, 23 Feb 2026	HK$8.9t	HK$3.8t	HK$558.5b	14.9x	15.9x	2.4x
Wed, 21 Jan 2026	HK$9.8t	HK$3.7t	HK$555.8b	16.1x	17.6x	2.6x
Fri, 19 Dec 2025	HK$9.9t	HK$3.7t	HK$548.3b	14.5x	18.1x	2.7x
Sun, 16 Nov 2025	HK$10.5t	HK$3.6t	HK$529.1b	16.3x	19.8x	2.9x
Tue, 14 Oct 2025	HK$10.5t	HK$3.6t	HK$525.4b	17.4x	20x	2.9x
Thu, 11 Sep 2025	HK$10.6t	HK$3.6t	HK$527.1b	17.5x	20x	2.9x
Sat, 09 Aug 2025	HK$9.9t	HK$3.5t	HK$505.5b	16.8x	19.5x	2.8x
Mon, 07 Jul 2025	HK$9.2t	HK$3.6t	HK$503.1b	16.2x	18.2x	2.6x
Wed, 04 Jun 2025	HK$9.2t	HK$3.5t	HK$501.2b	14x	18.3x	2.6x
Fri, 02 May 2025	HK$8.6t	HK$3.4t	HK$481.2b	12.9x	17.8x	2.5x
Sun, 30 Mar 2025	HK$8.8t	HK$3.4t	HK$478.1b	13.3x	18.5x	2.6x
Tue, 25 Feb 2025	HK$8.8t	HK$3.4t	HK$453.2b	12.1x	19.5x	2.6x
Thu, 23 Jan 2025	HK$7.3t	HK$3.4t	HK$450.4b	11x	16.2x	2.2x
Sat, 21 Dec 2024	HK$7.7t	HK$3.4t	HK$446.7b	11.8x	17.3x	2.3x
Mon, 18 Nov 2024	HK$7.3t	HK$3.4t	HK$450.4b	11.5x	16.3x	2.2x
Wed, 16 Oct 2024	HK$7.1t	HK$3.3t	HK$404.1b	11.3x	17.5x	2.1x
Fri, 13 Sep 2024	HK$6.4t	HK$3.3t	HK$405.3b	10.5x	15.9x	1.9x
Sun, 11 Aug 2024	HK$6.4t	HK$3.3t	HK$377.8b	10.4x	17.1x	2x
Tue, 09 Jul 2024	HK$6.7t	HK$3.2t	HK$369.9b	11.6x	18.2x	2.1x
Thu, 06 Jun 2024	HK$6.7t	HK$3.2t	HK$370.4b	11.5x	18.1x	2.1x
Sat, 04 May 2024	HK$6.5t	HK$3.2t	HK$348.1b	11.5x	18.7x	2x
Mon, 01 Apr 2024	HK$5.8t	HK$3.2t	HK$346.6b	11.7x	16.8x	1.8x
Wed, 28 Feb 2024	HK$5.6t	HK$3.2t	HK$426.0b	13x	13.2x	1.8x
Fri, 26 Jan 2024	HK$5.6t	HK$3.2t	HK$424.3b	12.8x	13.3x	1.8x
Sun, 24 Dec 2023	HK$5.3t	HK$3.2t	HK$426.2b	12.8x	12.4x	1.7x
Tue, 21 Nov 2023	HK$5.9t	HK$3.2t	HK$411.0b	12.9x	14.3x	1.9x
Thu, 19 Oct 2023	HK$5.8t	HK$3.1t	HK$407.5b	12.6x	14.2x	1.9x
Sat, 16 Sep 2023	HK$6.1t	HK$3.1t	HK$409.0b	11.1x	14.8x	1.9x
Mon, 14 Aug 2023	HK$6.2t	HK$3.1t	HK$391.1b	12.2x	16x	2x


HK Market	-1.75%
Telecom	-0.21%
Media	6.81%
Interactive Media and Services	1.68%
Entertainment	-0.57%
Wireless Telecom	-2.78%
Telecom Services and Carriers	-3.82%

Company	Last Price	7D	1Y	Valuation
700 Tencent Holdings	HK$478.80	0.8% +HK$32.3b	-14.7%	PE15.7x
2723 Beijing DeepZero Technology	HK$666.50	10.0% +HK$5.5b	n/a	PE5715.5x
326 China Star Entertainment	HK$8.60	25.4% +HK$4.2b	196.6%	PS51.6x
1024 Kuaishou Technology	HK$44.18	1.1% +HK$2.1b	-44.2%	PE9.4x
3888 Kingsoft	HK$27.54	2.9% +HK$1.1b	-18.1%	PE11.4x

Announcement • 22h

Tencent Announces Global Availability of Hy3 Ai Model and Integration Across Products and Cloud Services

Tencent had announced broader international access to Tencent Hy3 (Tencent Hy, formerly known as Tencent Hunyuan) following the model's official release on 6 July. The rollout broadens access for developers, users and enterprises, offering multiple ways to experience and integrate the model. Users and enterprises can access Hy3 through WorkBuddy, where it is available free of charge to users worldwide until 31 August 2026 (Pacific Time), as well as through Tencent Design Miora and Tencent Cloud TokenHub. Further integrations are planned across Tencent Cloud's AI-native product portfolio. Developers can also connect to the model via API and integrate it with developer environments, coding extensions, third-party platforms and other tools. Hy3 recorded more than 68 times as many API calls as its previous-generation model and ranked first globally on OpenRouter's global LLM usage leaderboard within one week of launch. Building on strong early momentum, Hy3 continues to expand across the global third-party developer platforms, including Hermes, Kilo, Cline, OpenClaw, OpenCode and Cherry Studio. It has also been available from day one on open-source model communities including Hugging Face and ModelScope. Built on a hybrid fast-and-slow-thinking Mixture-of-Experts (MoE) architecture, Hy3 has 295 billion total parameters and 21 billion active parameters and supports a context length of up to 256K. It performs comparably to flagship models with two to five times as many parameters across reasoning, instruction understanding, in-context learning, code generation and agent capabilities. Co-designed within Tencent's product ecosystem, Hy3 is continuously refined through feedback from millions of users and demanding large-scale scenarios. This feedback loop strengthens its capabilities and stability, while advances in the model unlock more capable product experiences and application scenarios. Across software development, office productivity, financial modelling, front-end design and game production, Hy3 delivers stable performance while reducing token consumption per task. WorkBuddy has become China's most widely used AI agent workspace. Users can use natural language instructions to perform tasks ranging from research and data analysis to creating documents, presentations and workplace communications. Its concurrent multi-agent capabilities and more than 100 built-in skills enable complex workflows to be executed from a single prompt, while API support allows flexible integration with different models and can be managed remotely through tools such as Discord, Slack, and Telegram. In internal evaluations conducted within Tencent's workplace environment, Hy3 delivered a task success rate exceeding 90% when used in WorkBuddy while reducing average task completion time by 34% compared with the previous Hy model iteration. Tencent Design Miora, now connected with Hy3, is an AI-native creative studio for design teams, content creators and marketers. Drawing on Tencent's more than two decades of experience across digital content and games, Miora orchestrates specialist agents to turn a natural-language brief into production-ready assets spanning graphics, video, 3D and user interfaces. Connecting Miora with Hy3 brings the model's stronger reasoning and agent capabilities into complex creative workflows while keeping the design process editable and traceable. Hy3 is also available through Tencent Cloud TokenHub, a Model-as-a-Service platform for managing, deploying and integrating multiple large language models through a single API. Its intelligent model routing provides access to Hy3 now, alongside leading third-party models, automatically selecting the most suitable model for each task. Transparent usage governance, flexible billing and enterprise token plans give enterprises and users greater control over cost and performance as they scale AI adoption. Tencent Cloud is also working with regional partners, including South Korea-based e-commerce platform provider Cafe24 and Japan-based enterprise AI platform company Metelix, to make Hy3 available through their respective AI gateway and platform services. These collaborations expand the model choices available to the enterprises they serve. Reflecting Tencent's commitment to model openness and a multi-model ecosystem, Hy3 is made available through global developer platforms and open-source communities under the commercially permissive Apache 2.0 license. Developers can use, adapt and deploy the model within their own environments, supporting wider experimentation, collaboration and innovation across the AI community. Hy3 API access on OpenRouter is now listed starting at USD 0.1288 per million input tokens and USD 0.5336 per million output tokens, providing a cost-efficient foundation for deploying real-world AI applications and agentic workflows at scale. Tencent delivers these capabilities internationally through cloud infrastructure spanning 66 Availability Zones across 23 regions, supported by more than 3,200 acceleration nodes worldwide.

Announcement • Jul 25

China Mobile Announces Comprehensive Upgrade to Traditional Calling Services

China Mobile announced a comprehensive upgrade to its traditional calling services, ushering in a next-generation calling experience defined by HD, intelligence, and security. Overcoming the limitations of traditional, voice-only interactions, China Mobile has leveraged its mature VoLTE/VoNR network foundation to deeply integrate AI models with HD audio and video capabilities. Without requiring users to change their phones or SIM cards, seven core AI functions are now seamlessly embedded into the native dialer interface. These upgrades include Live Captions bridge communication gaps for the elderly and hearing-impaired; HD video calls and AI noise reduction create a crystal-clear, immersive calling experience; AI anti-fraud intercepts high-risk calls in real time to safeguard users' assets. Furthermore, the introduction of Data Channel (DC) technology and visual call menus transforms standard calls into agile, interactive service windows, enabling multi-party collaboration and seamless business transactions directly within the call. Through this initiative, China Mobile has successfully evolved traditional calls from a mere voice pipeline into a secure, integrated information hub. Deutsche Telekom launched Magenta AI, leveraging artificial intelligence to enhance calling across all scenarios. T-Mobile US introduced a network-side, real-time translation service covering over 80 languages, effectively breaking down cross-border communication barriers. Saudi stc rolled out English-Arabic bilingual simultaneous interpretation, which has now entered large-scale commercial trials. South Korea's LG U+ launched its ixi-O intelligent calling assistant, shifting the user experience from passive responses to proactive smart interactions and earning three prestigious GLOMO industry awards. The synchronized efforts of these global leaders confirm that basic calling services have officially entered a new era of AI integration. Deeply empowered by artificial intelligence, "Calling + AI" has become the definitive blueprint for the intelligent transformation of the global telecommunications industry. As operators continue to refine these native capabilities, the traditional voice network is poised to reclaim its position as the most secure, ubiquitous, and valuable entry point in the AI era.

Hong Kong (HSI) Telecom Sector Analysis

Sector Valuation and Performance

Industry Trends

Top Stock Gainers and Losers

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