Subdued Growth No Barrier To NetEase Cloud Music Inc. (HKG:9899) With Shares Advancing 26%
Jul 18
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Hong Kong (HSI) Entertainment Industry Analysis
UpdatedJul 19, 2025
DataAggregated Company Financials
Companies51
- 7D6.8%
- 3M40.3%
- 1Y58.8%
- YTD56.2%
Over the last 7 days, the Entertainment industry has risen 6.8%, driven by gains from NetEase of 5.6%. During this same period, the China Star Entertainment underperformed, falling 12%. This takes the industry's 12 month performance to a gain of 59%. Looking forward, earnings are forecast to grow by 13% annually.
Industry Valuation and Performance
Has the Hong Kong Entertainment Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 20 Jul 2025 | HK$987.5b | HK$199.3b | HK$36.7b | 18.3x | 26.9x | 5x |
| Tue, 17 Jun 2025 | HK$915.9b | HK$199.3b | HK$36.6b | 19.1x | 25x | 4.6x |
| Thu, 15 May 2025 | HK$748.0b | HK$193.8b | HK$33.9b | 16.1x | 22.1x | 3.9x |
| Sat, 12 Apr 2025 | HK$685.1b | HK$191.3b | HK$32.8b | 13.4x | 20.9x | 3.6x |
| Mon, 10 Mar 2025 | HK$752.1b | HK$196.2b | HK$33.6b | 16.3x | 22.4x | 3.8x |
| Wed, 05 Feb 2025 | HK$720.7b | HK$197.1b | HK$30.0b | 13x | 24x | 3.7x |
| Fri, 03 Jan 2025 | HK$635.4b | HK$195.5b | HK$29.7b | 12.4x | 21.4x | 3.2x |
| Sun, 01 Dec 2024 | HK$619.4b | HK$197.1b | HK$30.0b | 12.4x | 20.6x | 3.1x |
| Tue, 29 Oct 2024 | HK$579.0b | HK$199.6b | HK$31.7b | 12.7x | 18.2x | 2.9x |
| Thu, 26 Sep 2024 | HK$160.1b | HK$84.5b | HK$418.5m | 11.9x | 382.6x | 1.9x |
| Sat, 24 Aug 2024 | HK$159.1b | HK$84.5b | HK$2.6b | 10.1x | 60.7x | 1.9x |
| Mon, 22 Jul 2024 | HK$166.7b | HK$83.4b | HK$1.8b | 10.5x | 91.4x | 2x |
| Wed, 19 Jun 2024 | HK$183.5b | HK$83.8b | HK$1.8b | 11.2x | 100.3x | 2.2x |
| Fri, 17 May 2024 | HK$197.5b | HK$83.2b | HK$1.2b | 12.4x | 160.7x | 2.4x |
| Sun, 14 Apr 2024 | HK$182.3b | HK$83.3b | HK$1.2b | 11.7x | 148x | 2.2x |
| Tue, 12 Mar 2024 | HK$180.4b | HK$82.5b | HK$1.1b | 22.4x | 169.5x | 2.2x |
| Thu, 08 Feb 2024 | HK$163.6b | HK$83.8b | HK$606.9m | 19.3x | 269.6x | 2x |
| Sat, 06 Jan 2024 | HK$179.4b | HK$92.7b | -HK$1,295,617,820.00 | 18.3x | -138.5x | 1.9x |
| Mon, 04 Dec 2023 | HK$189.9b | HK$92.7b | -HK$1,299,924,654.00 | 21.7x | -146.1x | 2x |
| Wed, 01 Nov 2023 | HK$189.2b | HK$90.1b | -HK$8,468,225,098.00 | 15.3x | -22.3x | 2.1x |
| Fri, 29 Sep 2023 | HK$205.9b | HK$99.4b | -HK$8,032,330,687.00 | 15.2x | -25.6x | 2.1x |
| Sun, 27 Aug 2023 | HK$207.2b | HK$89.0b | -HK$10,315,010,042.00 | 17.1x | -20.1x | 2.3x |
| Tue, 25 Jul 2023 | HK$241.0b | HK$86.3b | -HK$12,585,709,397.00 | 30.7x | -19.1x | 2.8x |
| Thu, 22 Jun 2023 | HK$230.7b | HK$86.5b | -HK$12,623,729,093.00 | 22x | -18.3x | 2.7x |
| Sat, 20 May 2023 | HK$233.8b | HK$88.7b | -HK$12,447,277,957.00 | 22.6x | -18.8x | 2.6x |
| Mon, 17 Apr 2023 | HK$254.6b | HK$90.3b | -HK$12,711,061,127.00 | 27.3x | -20x | 2.8x |
| Wed, 15 Mar 2023 | HK$223.3b | HK$89.7b | -HK$7,200,070,767.00 | 12x | -31x | 2.5x |
| Fri, 10 Feb 2023 | HK$255.1b | HK$90.4b | -HK$5,193,541,854.00 | 9.5x | -49.1x | 2.8x |
| Sun, 08 Jan 2023 | HK$216.0b | HK$87.0b | -HK$5,005,203,957.00 | 6.9x | -43.2x | 2.5x |
| Tue, 06 Dec 2022 | HK$178.2b | HK$78.7b | -HK$4,933,424,228.00 | 8.7x | -36.1x | 2.3x |
| Thu, 03 Nov 2022 | HK$153.5b | HK$76.4b | HK$2.1b | 7.2x | 73x | 2x |
| Sat, 01 Oct 2022 | HK$157.9b | HK$77.8b | HK$2.0b | 8.2x | 78.6x | 2x |
| Mon, 29 Aug 2022 | HK$175.4b | HK$78.6b | -HK$706,753,139.00 | 9x | -248.2x | 2.2x |
| Wed, 27 Jul 2022 | HK$168.8b | HK$78.7b | -HK$4,082,352,669.00 | 8.2x | -41.3x | 2.1x |
Price to Earnings Ratio
-41.3x
Current Industry PE
- Investors are pessimistic on the Hong Kong Entertainment 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 26.9x which is lower than its 3-year average PE of 35.1x.
- The 3-year average PS ratio of 2.6x is lower than the industry's current PS ratio of 5.0x.
Past Earnings Growth
- Total earnings for the Entertainment industry have gone up over the last three years, and the industry is now profitable. Revenues have grown 36% per year.
- This means that more sales are being generated by the industry overall, and subsequently profits are increasing too.
Industry Trends
Which industries have driven the changes within the Hong Kong Telecom industry?
| HK Market | 2.11% | |
| Telecom | 4.09% | |
| Entertainment | 6.85% | |
| Movies and Entertainment | 10.68% | |
| Interactive Home Entertainment | 5.96% | |
Industry PE
- Investors are most optimistic about the Movies and Entertainment industry which is trading above its 3-year average PE ratio.
- Analysts are expecting annual earnings growth of 31.8%, which is higher than its past year's earnings decline of 19.2% per year.
- Investors are most pessimistic about the Interactive Home Entertainment industry, which is trading below its 3-year average of 100x.
Forecasted Growth
- Analysts are most optimistic on the Movies and Entertainment industry, expecting annual earnings growth of 32% over the next 5 years.
- This is better than its past earnings decline of 19% per year.
- In contrast, the Interactive Home Entertainment industry is expected to see its earnings grow by 8.9% 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 | |
|---|---|---|---|---|---|
| 9999 NetEase | HK$213.20 | 5.6% +HK$36.1b | 50.4% | PE19.1x | |
| 1060 Damai Entertainment Holdings | HK$1.27 | 28.3% +HK$8.4b | 209.8% | PE95.5x | |
| 9899 NetEase Cloud Music | HK$302.40 | 12.1% +HK$7.1b | 214.8% | PE38.5x | |
| 3888 Kingsoft | HK$36.15 | 10.6% +HK$4.8b | 63.2% | PE29.7x | |
| 136 China Ruyi Holdings | HK$3.41 | 6.2% +HK$3.2b | 59.3% | PS13.5x |
