Tencent Holdings Limited's (HKG:700) Intrinsic Value Is Potentially 91% Above Its Share Price
Dec 22
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Hong Kong (HSI) Telecom Sector Analysis
UpdatedDec 21, 2024
DataAggregated Company Financials
Companies135
- 7D2.4%
- 3M9.3%
- 1Y36.8%
- YTD27.7%
Over the last 7 days, the Telecom industry has risen 2.4%, driven by gains from Tencent Holdings of 4.1%. In the same time, Kuaishou Technology was down 8.1%. This takes the industry's 12 month performance to a gain of 37%. Looking forward, earnings are forecast to grow by 10% annually.
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 |
|---|---|---|---|---|---|---|
| Sun, 22 Dec 2024 | HK$7.7t | HK$3.4t | HK$446.7b | 11.8x | 17.3x | 2.3x |
| Tue, 19 Nov 2024 | HK$7.4t | HK$3.4t | HK$450.4b | 11.5x | 16.3x | 2.2x |
| Thu, 17 Oct 2024 | HK$7.1t | HK$3.3t | HK$404.1b | 11.5x | 17.5x | 2.1x |
| Sat, 14 Sep 2024 | HK$6.5t | HK$3.3t | HK$406.6b | 10.5x | 15.9x | 1.9x |
| Mon, 12 Aug 2024 | HK$6.4t | HK$3.3t | HK$377.8b | 10.4x | 17.1x | 2x |
| Wed, 10 Jul 2024 | HK$6.8t | HK$3.2t | HK$369.9b | 11.8x | 18.3x | 2.1x |
| Fri, 07 Jun 2024 | HK$6.7t | HK$3.2t | HK$370.5b | 11.4x | 18.1x | 2.1x |
| Sun, 05 May 2024 | HK$6.5t | HK$3.2t | HK$348.0b | 11.5x | 18.7x | 2x |
| Tue, 02 Apr 2024 | HK$5.8t | HK$3.2t | HK$346.2b | 11.7x | 16.8x | 1.8x |
| Thu, 29 Feb 2024 | HK$5.5t | HK$3.2t | HK$426.1b | 12.1x | 13x | 1.7x |
| Sat, 27 Jan 2024 | HK$5.5t | HK$3.2t | HK$426.3b | 12.4x | 13x | 1.7x |
| Mon, 25 Dec 2023 | HK$5.3t | HK$3.2t | HK$426.2b | 12.8x | 12.4x | 1.7x |
| Wed, 22 Nov 2023 | HK$5.9t | HK$3.2t | HK$413.0b | 13x | 14.2x | 1.8x |
| Fri, 20 Oct 2023 | HK$5.7t | HK$3.1t | HK$407.4b | 12.1x | 13.9x | 1.8x |
| Sun, 17 Sep 2023 | HK$6.1t | HK$3.1t | HK$409.1b | 11.1x | 14.8x | 1.9x |
| Tue, 15 Aug 2023 | HK$6.2t | HK$3.1t | HK$389.9b | 12.1x | 16x | 2x |
| Thu, 13 Jul 2023 | HK$6.1t | HK$3.1t | HK$387.5b | 13.9x | 15.8x | 2x |
| Sat, 10 Jun 2023 | HK$6.3t | HK$3.1t | HK$391.2b | 14.6x | 16.1x | 2x |
| Mon, 08 May 2023 | HK$6.4t | HK$3.2t | HK$395.8b | 15.2x | 16.3x | 2x |
| Wed, 05 Apr 2023 | HK$6.8t | HK$3.1t | HK$398.0b | 12.7x | 17.1x | 2.2x |
| Fri, 03 Mar 2023 | HK$6.4t | HK$3.1t | HK$383.1b | 11x | 16.7x | 2.1x |
| Sun, 29 Jan 2023 | HK$6.7t | HK$3.1t | HK$392.6b | 12x | 17.1x | 2.1x |
| Tue, 27 Dec 2022 | HK$5.5t | HK$3.0t | HK$382.3b | 10.4x | 14.5x | 1.8x |
| Thu, 24 Nov 2022 | HK$5.0t | HK$3.0t | HK$372.9b | 10x | 13.4x | 1.7x |
| Sat, 22 Oct 2022 | HK$4.4t | HK$2.9t | HK$371.6b | 9.9x | 11.8x | 1.5x |
| Mon, 19 Sep 2022 | HK$5.2t | HK$3.0t | HK$382.0b | 10.4x | 13.5x | 1.7x |
| Wed, 17 Aug 2022 | HK$5.4t | HK$3.1t | HK$413.1b | 9.2x | 13.1x | 1.8x |
| Fri, 15 Jul 2022 | HK$5.7t | HK$3.1t | HK$403.4b | 9.5x | 14.1x | 1.9x |
| Sun, 12 Jun 2022 | HK$6.3t | HK$3.1t | HK$343.9b | 10.8x | 18.4x | 2.1x |
| Tue, 10 May 2022 | HK$5.7t | HK$3.1t | HK$374.8b | 10.6x | 15.3x | 1.9x |
| Thu, 07 Apr 2022 | HK$6.3t | HK$3.2t | HK$386.8b | 11.4x | 16.2x | 2x |
| Sat, 05 Mar 2022 | HK$6.4t | HK$3.1t | HK$325.9b | 10.6x | 19.7x | 2.1x |
| Mon, 31 Jan 2022 | HK$7.0t | HK$3.1t | HK$321.8b | 10x | 21.8x | 2.3x |
| Wed, 29 Dec 2021 | HK$6.7t | HK$3.1t | HK$321.5b | 9.9x | 21x | 2.2x |
Price to Earnings Ratio
21x
Current Industry PE
- Investors are relatively neutral on the Hong Kong Communication Services industry at the moment, indicating that they anticipate long term growth rates to remain steady.
- The industry is trading close to its 3-year average PE ratio of 15.9x.
- The 3-year average PS ratio of 1.9x is lower than the industry's current PS ratio of 2.3x.
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 3.0% 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 | -0.53% | |
| Telecom | 2.42% | |
| Interactive Media and Services | 3.42% | |
| Telecom Services and Carriers | 3.26% | |
| Wireless Telecom | 1.74% | |
| Entertainment | -2.26% | |
| Media | -3.72% | |
Industry PE
- Investors are most optimistic about the Entertainment industry even though it's trading below its 3-year average PE ratio of 51.3x.
- Analysts are expecting annual earnings growth of 13.6%, which is higher than its past year's earnings growth of 10.1% per year.
Forecasted Growth
- Analysts are most optimistic on the Media industry, expecting annual earnings growth of 26% over the next 5 years.
- This is better than its past earnings decline of 2.2% per year.
- In contrast, the Wireless Telecom industry is expected to see its earnings grow by 2.7% 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 | |
|---|---|---|---|---|---|
| 700 Tencent Holdings | HK$426.40 | 4.1% +HK$151.8b | 55.6% | PE21.5x | |
| 941 China Mobile | HK$75.35 | 1.8% +HK$27.9b | 22.0% | PE11.1x | |
| 728 China Telecom | HK$4.85 | 3.0% +HK$12.8b | 40.2% | PE12.8x | |
| 762 China Unicom (Hong Kong) | HK$7.15 | 5.9% +HK$12.2b | 58.2% | PE10x | |
| 788 China Tower | HK$1.12 | 4.7% +HK$8.7b | 38.3% | PE17.4x |
