Hong Kong (HSI) Telecom Sector Analysis

Sector Valuation and Performance

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

Date	Market Cap	Revenue	Earnings	PE	Absolute PE	PS
Thu, 08 Dec 2022	HK$5.5t	HK$3.0t	HK$380.1b	10x	14.3x	1.8x
Sat, 05 Nov 2022	HK$4.4t	HK$2.9t	HK$368.1b	10.2x	12x	1.5x
Mon, 03 Oct 2022	HK$4.8t	HK$3.0t	HK$375.0b	11.1x	12.7x	1.6x
Wed, 31 Aug 2022	HK$5.6t	HK$3.0t	HK$383.6b	11.9x	14.5x	1.8x
Fri, 29 Jul 2022	HK$5.6t	HK$3.0t	HK$400.7b	9.2x	13.9x	1.8x
Sun, 26 Jun 2022	HK$6.2t	HK$3.1t	HK$405.3b	10.3x	15.2x	2x
Tue, 24 May 2022	HK$5.8t	HK$3.1t	HK$344.8b	10.6x	16.8x	1.9x
Thu, 21 Apr 2022	HK$6.0t	HK$3.1t	HK$385.6b	10.9x	15.6x	1.9x
Sat, 19 Mar 2022	HK$6.2t	HK$3.1t	HK$325.2b	9.7x	19x	2x
Mon, 14 Feb 2022	HK$7.4t	HK$3.1t	HK$322.2b	11.1x	22.8x	2.4x
Wed, 12 Jan 2022	HK$7.1t	HK$3.1t	HK$321.0b	10x	22x	2.3x
Fri, 10 Dec 2021	HK$7.0t	HK$3.1t	HK$322.9b	10.9x	21.8x	2.3x
Sun, 07 Nov 2021	HK$7.1t	HK$3.0t	HK$291.6b	11.3x	24.2x	2.3x
Tue, 05 Oct 2021	HK$6.8t	HK$3.0t	HK$284.3b	10.8x	24.1x	2.3x
Thu, 02 Sep 2021	HK$7.3t	HK$2.9t	HK$281.4b	13.4x	26x	2.5x
Sat, 31 Jul 2021	HK$7.0t	HK$2.9t	HK$281.4b	11.8x	25x	2.4x
Tue, 04 May 2021	HK$9.2t	HK$2.8t	HK$218.7b	13.7x	42.1x	3.3x
Fri, 05 Feb 2021	HK$8.5t	HK$2.6t	HK$360.6b	14x	23.5x	3.2x
Mon, 09 Nov 2020	HK$7.6t	HK$2.5t	HK$301.9b	12.9x	25.1x	3.1x
Sun, 02 Aug 2020	HK$7.2t	HK$2.3t	HK$272.2b	14.2x	26.3x	3.1x
Wed, 06 May 2020	HK$6.3t	HK$2.3t	HK$263.8b	14.1x	23.9x	2.8x
Sat, 08 Feb 2020	HK$6.0t	HK$2.3t	HK$273.2b	15.8x	21.9x	2.6x

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 14.3x which is lower than its 3-year average PE of 22.8x.

The 3-year average PS ratio of 2.5x 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 12% per year over the last three years.
Revenues for these companies have grown 9.5% 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	2.87%
Telecom	6.25%
Interactive Media and Services	8.89%
Entertainment	5.49%
Telecom Services and Carriers	3.36%
Wireless Telecom	1.96%
Media	-1.57%

Industry PE

Investors are most optimistic about the Interactive Media and Services industry even though it's trading below its 3-year average PE ratio of 46.7x.

Analysts are expecting annual earnings growth of 19.2%, which is higher than its past year's earnings growth of 2.1% per year.

Forecasted Growth

Analysts are most optimistic on the Entertainment industry, expecting annual earnings growth of 47% over the next 5 years.
This is better than its past earnings growth rate of 16% per year.

In contrast, the Media industry is expected to see its earnings growth to stay flat 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
700 Tencent Holdings	HK$300.20	4.5% +HK$121.8b	-35.7%	PE14.4x
1024 Kuaishou Technology	HK$61.85	9.4% +HK$22.8b	-26.5%	PS2.6x
762 China Unicom (Hong Kong)	HK$4.48	3.0% +HK$4.0b	16.7%	PE7.2x
1060 Alibaba Pictures Group	HK$0.53	24.7% +HK$2.8b	-30.3%	PE64.1x
1357 Meitu	HK$1.49	35.5% +HK$1.7b	-11.3%	PS3.2x

Dec 01

Sector Valuation and Performance