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
Mon, 22 Jun 2026	HK$8.0t	HK$3.9t	HK$585.3b	11.3x	13.6x	2x
Wed, 20 May 2026	HK$8.5t	HK$3.9t	HK$581.6b	12.5x	14.6x	2.2x
Fri, 17 Apr 2026	HK$8.8t	HK$3.8t	HK$571.3b	13.2x	15.4x	2.3x
Sun, 15 Mar 2026	HK$9.2t	HK$3.8t	HK$560.7b	14.7x	16.4x	2.4x
Tue, 10 Feb 2026	HK$9.3t	HK$3.7t	HK$560.0b	14.8x	16.6x	2.5x
Thu, 08 Jan 2026	HK$10.1t	HK$3.7t	HK$551.3b	15.2x	18.3x	2.7x
Sat, 06 Dec 2025	HK$10.2t	HK$3.7t	HK$546.3b	15.3x	18.6x	2.8x
Mon, 03 Nov 2025	HK$10.3t	HK$3.6t	HK$527.3b	16.6x	19.6x	2.9x
Wed, 01 Oct 2025	HK$10.8t	HK$3.6t	HK$526.7b	17.8x	20.4x	3x
Fri, 29 Aug 2025	HK$10.3t	HK$3.6t	HK$524.4b	18.3x	19.6x	2.9x
Sun, 27 Jul 2025	HK$9.7t	HK$3.6t	HK$503.0b	17.2x	19.4x	2.7x
Tue, 24 Jun 2025	HK$9.2t	HK$3.5t	HK$501.4b	15.1x	18.3x	2.6x
Thu, 22 May 2025	HK$9.3t	HK$3.5t	HK$499.8b	13.9x	18.5x	2.6x
Sat, 19 Apr 2025	HK$8.4t	HK$3.4t	HK$478.2b	12.8x	17.6x	2.5x
Mon, 17 Mar 2025	HK$9.1t	HK$3.4t	HK$455.1b	12.5x	20x	2.7x
Wed, 12 Feb 2025	HK$7.9t	HK$3.4t	HK$448.1b	11.7x	17.7x	2.4x
Fri, 10 Jan 2025	HK$7.2t	HK$3.4t	HK$445.8b	11.1x	16.2x	2.1x
Sun, 08 Dec 2024	HK$7.5t	HK$3.4t	HK$448.9b	11.9x	16.7x	2.2x
Tue, 05 Nov 2024	HK$7.5t	HK$3.4t	HK$441.0b	11.4x	16.9x	2.2x
Thu, 03 Oct 2024	HK$7.4t	HK$3.4t	HK$409.9b	11.2x	18.1x	2.2x
Sat, 31 Aug 2024	HK$6.7t	HK$3.3t	HK$407.7b	11x	16.5x	2x
Mon, 29 Jul 2024	HK$6.4t	HK$3.2t	HK$370.9b	12.1x	17.2x	2x
Wed, 26 Jun 2024	HK$6.7t	HK$3.2t	HK$370.0b	11.1x	18x	2.1x
Fri, 24 May 2024	HK$6.7t	HK$3.2t	HK$370.5b	11.7x	18.1x	2.1x
Sun, 21 Apr 2024	HK$5.8t	HK$3.2t	HK$346.4b	11x	16.9x	1.8x
Tue, 19 Mar 2024	HK$5.7t	HK$3.2t	HK$426.4b	12.8x	13.3x	1.8x
Thu, 15 Feb 2024	HK$5.6t	HK$3.2t	HK$426.5b	12.8x	13.1x	1.8x
Sat, 13 Jan 2024	HK$5.5t	HK$3.2t	HK$424.7b	12.7x	13x	1.7x
Mon, 11 Dec 2023	HK$5.7t	HK$3.2t	HK$424.0b	12.8x	13.3x	1.8x
Wed, 08 Nov 2023	HK$5.7t	HK$3.1t	HK$409.5b	10.9x	13.9x	1.8x
Fri, 06 Oct 2023	HK$5.9t	HK$3.1t	HK$408.3b	12.4x	14.4x	1.9x
Sun, 03 Sep 2023	HK$6.1t	HK$3.1t	HK$409.5b	11.6x	14.8x	1.9x
Tue, 01 Aug 2023	HK$6.4t	HK$3.1t	HK$388.6b	13.1x	16.5x	2.1x
Thu, 29 Jun 2023	HK$6.2t	HK$3.1t	HK$384.8b	14.5x	16.1x	2x

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 13.6x 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.

Past Earnings Growth

The earnings for companies in the Communication Services industry have grown 15% per year over the last three years.
Revenues for these companies have grown 8.5% 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	-3.95%
Telecom	-4.18%
Wireless Telecom	-2.07%
Entertainment	-4.14%
Interactive Media and Services	-4.65%
Telecom Services and Carriers	-5.53%
Media	-6.92%

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 35.1%, which is higher than its past year's earnings decline of 4.8% per year.

Investors are most pessimistic about the Wireless Telecom industry, which is trading close to its 3-year average of 11.2x.

Forecasted Growth

Analysts are most optimistic on the Media industry, expecting annual earnings growth of 35% over the next 5 years.
This is better than its past earnings decline of 4.8% per year.

In contrast, the Wireless Telecom industry is expected to see its earnings grow by 2.9% 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
1024 Kuaishou Technology	HK$47.24	3.0% +HK$5.9b	-16.3%	PE10.1x
2309 ZO Future Group	HK$3.95	66.0% +HK$1.4b	66.0%	PS7.6x
136 China Ruyi Holdings	HK$1.48	5.0% +HK$1.2b	-38.1%	PE11.8x
9911 Newborn Town	HK$8.55	10.0% +HK$1.1b	-8.8%	PE11.1x
3700 Inkeverse Group	HK$1.52	6.3% +HK$174.4m	28.8%	PE10.5x

Beijing Xunzhong Communication Technology Co., Ltd. Receives Notice of Response to Action, Summons, and Notice of Adducing Evidence in Civil Litigation

The Company has received the Notice of Response to Action, Summons, and Notice of Adducing Evidence in Civil Litigation (Case No.: (2026) Lu 02 Min Chu No. 518) ((2026) 02 518) dated 25 May 2026, and relevant litigation materials served by the Qingdao Intermediate People ' s Court of Shandong Province (the "Court") on 1 June 2026. The basic information about the litigation is as follows: Parties in the litigation: Plaintiff: Qingdao Guoshi Data Service Co., Ltd. ("Qingdao Guoshi" or the "Plaintiff"); and Defendant: Beijing Xunzhong Communication Technology Co., Ltd. (the "Company" or the "Defendant"). Background of the case: In December 2025, Qingdao Guoshi and the Company jointly entered into a Computing Power Service Agreement (the " Service Agreement "), pursuant to which the Company agreed to provide Qingdao Guoshi with 256 high-performance intelligent computing node servers, forming a computing power cluster service together with the necessary system software, hardware and technical support. The service term under the agreement is 36 months, to be implemented in three phases, each phase having a service period of 12 months. The total contract amount (inclusive of tax) for the first 12-month phase is RMB181,248,000, and the computing power resource services are scheduled to commence no later than 30 January 2026. After entering the service agreement, on 21 January 2026, the United States House Committee on Foreign Affairs passed amendments to the AI Overwatch Act, which stipulates that the United States would restrict and prohibit the export of Nvidia chips to certain countries including China. As a result, market prices surged significantly and imports were blocked, rendering the Company's upstream suppliers unable to perform their contractual obligations. Such has in turn prevented the Company from fulfilling its contractual obligations to Qingdao Guoshi. Consequently, the Company failed to commence the services by 30 January 2026 as agreed, and Qingdao Guoshi had not made any payment to the Company under the Service Agreement. Upon ascertaining the inability to perform the contractual obligations under the Service Agreement, the Company issued a termination notice to Qingdao Guoshi on 26 January 2026. Qingdao Guoshi did not accept such termination, and commenced legal proceedings on 28 April 2026 against the Company in Qingdao, Shandong Province, requesting the termination of the agreement and the payment by the Company of liquidated damages in the amount of RMB 181,248,000. Upon accepting the case, the Court has frozen assets of the Company in the amount of RMB 40 million pursuant to pre-litigation preservation procedures. The first hearing date is scheduled on 17 June 2026. Claims: The Plaintiff requested the Court to: Order the termination of the Service Agreement numbered GSSJ-25CG-056 entered into between the Plaintiff and the Defendant; Order the Defendant to pay liquidated damages of RMB181,248,000 to the Plaintiff; and Defendant shall bear the cost of the lawsuit. The Plaintiff filed a pre-litigation property preservation application to the Court, petitioning for the seizure and freezing of the Company's bank accounts in the amounts totaling RMB40 million or other properties of equivalent value. The litigation has not caused an adverse impact on the Company's operations and financial position for the time being, and the Company currently continues to conduct business as usual. The case is currently pending a court hearing and no judgment has been made yet. The Company has engaged professional lawyers to actively respond to the lawsuit to safeguard the legitimate rights and interests of the Company and its shareholders in accordance with the relevant laws and to avoid losses. At the same time, as this case did not involve actual fund transactions and there is no clear evidence to prove the plaintiff 's losses, the Company will also simultaneously file an appeal against the sealing and freezing of the Company's assets in the absence of a clear judgment on the case.

Hong Kong (HSI) Telecom Sector Analysis

Sector Valuation and Performance

Industry Trends

Top Stock Gainers and Losers

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