Analysis Article • 10h
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- 7D-3.2%
- 3M7.6%
- 1Y-13.5%
- YTD-15.5%
Over the last 7 days, the Entertainment industry has dropped 3.2%, driven by NetEase declining 4.2%. In contrast, 7Road Holdings has gained 72%. The industry has fallen 13% in the last year. Earnings are forecast to grow by 8.8% 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 |
|---|---|---|---|---|---|---|
| Wed, 29 Jul 2026 | HK$826.9b | HK$217.9b | HK$51.3b | 10.6x | 16.1x | 3.8x |
| Fri, 26 Jun 2026 | HK$755.7b | HK$217.4b | HK$51.2b | 9.4x | 14.8x | 3.5x |
| Sun, 24 May 2026 | HK$770.7b | HK$217.0b | HK$49.9b | 10.8x | 15.4x | 3.6x |
| Tue, 21 Apr 2026 | HK$798.5b | HK$214.1b | HK$49.5b | 11.7x | 16.1x | 3.7x |
| Thu, 19 Mar 2026 | HK$816.8b | HK$214.2b | HK$43.9b | 13.8x | 18.6x | 3.8x |
| Sat, 14 Feb 2026 | HK$837.8b | HK$212.2b | HK$45.2b | 14.2x | 18.5x | 3.9x |
| Mon, 12 Jan 2026 | HK$944.4b | HK$208.7b | HK$47.3b | 13.8x | 20x | 4.5x |
| Wed, 10 Dec 2025 | HK$930.8b | HK$206.8b | HK$46.7b | 14.9x | 19.9x | 4.5x |
| Fri, 07 Nov 2025 | HK$965.8b | HK$201.2b | HK$43.6b | 17x | 22.2x | 4.8x |
| Sun, 05 Oct 2025 | HK$1.0t | HK$200.5b | HK$43.7b | 19.7x | 23.9x | 5.2x |
| Tue, 02 Sep 2025 | HK$987.5b | HK$200.5b | HK$43.7b | 19.7x | 22.6x | 4.9x |
| Thu, 31 Jul 2025 | HK$941.7b | HK$199.3b | HK$36.8b | 18.5x | 25.6x | 4.7x |
| Sat, 28 Jun 2025 | HK$926.3b | HK$199.5b | HK$36.7b | 17.7x | 25.3x | 4.6x |
| Mon, 26 May 2025 | HK$831.7b | HK$198.6b | HK$37.2b | 16.2x | 22.4x | 4.2x |
| Wed, 23 Apr 2025 | HK$705.1b | HK$190.0b | HK$33.1b | 14x | 21.3x | 3.7x |
| Fri, 21 Mar 2025 | HK$727.2b | HK$196.3b | HK$33.9b | 15.7x | 21.4x | 3.7x |
| Sun, 16 Feb 2025 | HK$761.0b | HK$196.8b | HK$30.0b | 14.5x | 25.4x | 3.9x |
| Tue, 14 Jan 2025 | HK$670.3b | HK$194.9b | HK$29.6b | 12.3x | 22.6x | 3.4x |
| Thu, 12 Dec 2024 | HK$682.1b | HK$196.2b | HK$29.9b | 13.4x | 22.8x | 3.5x |
| Sat, 09 Nov 2024 | HK$567.9b | HK$198.7b | HK$31.6b | 12.3x | 18x | 2.9x |
| Mon, 07 Oct 2024 | HK$202.2b | HK$83.7b | HK$633.4m | 13.5x | 319.2x | 2.4x |
| Wed, 04 Sep 2024 | HK$155.6b | HK$83.5b | HK$540.0m | 12x | 288.2x | 1.9x |
| Fri, 02 Aug 2024 | HK$165.9b | HK$83.4b | HK$1.9b | 10.5x | 86.6x | 2x |
| Sun, 30 Jun 2024 | HK$178.1b | HK$83.4b | HK$1.8b | 10.7x | 97.9x | 2.1x |
| Tue, 28 May 2024 | HK$196.2b | HK$83.2b | HK$1.3b | 13.1x | 148.4x | 2.4x |
| Thu, 25 Apr 2024 | HK$178.2b | HK$83.2b | HK$1.2b | 11.4x | 145x | 2.1x |
| Sat, 23 Mar 2024 | HK$187.9b | HK$82.1b | HK$1.1b | 20.7x | 172.4x | 2.3x |
| Mon, 19 Feb 2024 | HK$180.7b | HK$83.0b | HK$591.3m | 23.5x | 305.6x | 2.2x |
| Wed, 17 Jan 2024 | HK$170.6b | HK$92.3b | -HK$1,302,259,771.00 | 20.3x | -131x | 1.8x |
| Fri, 15 Dec 2023 | HK$185.1b | HK$92.7b | -HK$1,298,997,880.00 | 19.1x | -142.5x | 2x |
| Sun, 12 Nov 2023 | HK$198.5b | HK$90.1b | -HK$8,412,091,308.00 | 15.8x | -23.6x | 2.2x |
| Tue, 10 Oct 2023 | HK$201.7b | HK$98.4b | -HK$8,093,095,859.00 | 15.4x | -24.9x | 2x |
| Thu, 07 Sep 2023 | HK$205.5b | HK$90.8b | -HK$8,651,272,321.00 | 16.8x | -23.7x | 2.3x |
| Sat, 05 Aug 2023 | HK$247.8b | HK$86.4b | -HK$12,488,129,761.00 | 19.3x | -19.8x | 2.9x |
Price to Earnings Ratio
-19.8x
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 16.1x which is lower than its 3-year average PE of 42.8x.
- The 3-year average PS ratio of 3.3x is lower than the industry's current PS ratio of 3.8x.
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 | 0.65% | |
| Telecom | -2.39% | |
| Entertainment | -3.16% | |
| Movies and Entertainment | 0.38% | |
| Interactive Home Entertainment | -3.62% | |
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 5.5%, which is lower than the prior year's growth of 76.0% per year.
- Investors are most pessimistic about the Interactive Home Entertainment industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 0.092x.
Forecasted Growth
- Analysts are most optimistic on the Interactive Home Entertainment industry, expecting annual earnings growth of 9.1% over the next 5 years.
- This is roughly in line with its past earnings growth rate.
- In contrast, the Movies and Entertainment industry is expected to see its earnings grow by 5.5% 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$203.20 | 5.3% +HK$32.7b | -1.0% | PE16.5x | |
| 9899 NetEase Cloud Music | HK$131.10 | 14.8% +HK$3.6b | -49.4% | PE8.7x | |
| 2400 XD | HK$46.50 | 11.0% +HK$2.2b | -12.6% | PE12.5x | |
| 3888 Kingsoft | HK$25.66 | 4.5% +HK$1.5b | -25.9% | PE10.7x | |
| 797 7Road Holdings | HK$1.55 | 34.8% +HK$1.0b | 118.3% | PE90.7x |
