Analysis Article • May 24
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- 7D-0.6%
- 3M-7.0%
- 1Y-8.3%
- YTD-21.2%
Over the last 7 days, the Entertainment industry has remained flat, although notably NetEase Cloud Music declined by 9.9%. As for the longer term, the industry has declined 8.3% in the last year. As for the next few years, earnings are expected to grow by 9.7% per annum.
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 |
|---|---|---|---|---|---|---|
| Mon, 25 May 2026 | HK$770.7b | HK$217.0b | HK$49.9b | 10.8x | 15.4x | 3.6x |
| Wed, 22 Apr 2026 | HK$794.9b | HK$214.2b | HK$49.5b | 11.8x | 16x | 3.7x |
| Fri, 20 Mar 2026 | HK$797.6b | HK$213.2b | HK$43.7b | 13.5x | 18.3x | 3.7x |
| Sun, 15 Feb 2026 | HK$837.7b | HK$212.3b | HK$45.2b | 14.2x | 18.5x | 3.9x |
| Tue, 13 Jan 2026 | HK$973.0b | HK$208.9b | HK$47.4b | 14x | 20.5x | 4.7x |
| Thu, 11 Dec 2025 | HK$918.9b | HK$206.8b | HK$46.7b | 14.5x | 19.7x | 4.4x |
| Sat, 08 Nov 2025 | HK$957.1b | HK$201.3b | HK$43.6b | 16.5x | 22x | 4.8x |
| Mon, 06 Oct 2025 | HK$1.0t | HK$200.5b | HK$43.7b | 19.7x | 23.9x | 5.2x |
| Wed, 03 Sep 2025 | HK$973.0b | HK$200.5b | HK$43.7b | 19.2x | 22.3x | 4.9x |
| Fri, 01 Aug 2025 | HK$935.2b | HK$198.9b | HK$36.7b | 18.5x | 25.5x | 4.7x |
| Sun, 29 Jun 2025 | HK$926.3b | HK$199.5b | HK$36.7b | 17.7x | 25.3x | 4.6x |
| Tue, 27 May 2025 | HK$834.0b | HK$198.5b | HK$37.2b | 16.1x | 22.4x | 4.2x |
| Thu, 24 Apr 2025 | HK$715.2b | HK$190.6b | HK$33.3b | 14.1x | 21.5x | 3.8x |
| Sat, 22 Mar 2025 | HK$708.9b | HK$195.9b | HK$33.7b | 14.9x | 21x | 3.6x |
| Mon, 17 Feb 2025 | HK$761.0b | HK$196.8b | HK$30.0b | 14.5x | 25.4x | 3.9x |
| Wed, 15 Jan 2025 | HK$673.6b | HK$194.9b | HK$29.6b | 12.6x | 22.7x | 3.5x |
| Fri, 13 Dec 2024 | HK$688.4b | HK$196.3b | HK$29.9b | 14.3x | 23x | 3.5x |
| Sun, 10 Nov 2024 | HK$567.9b | HK$198.3b | HK$31.5b | 12.3x | 18x | 2.9x |
| Tue, 08 Oct 2024 | HK$214.2b | HK$84.1b | HK$642.6m | 14.1x | 333.3x | 2.5x |
| Thu, 05 Sep 2024 | HK$155.1b | HK$83.6b | HK$540.9m | 11.9x | 286.8x | 1.9x |
| Sat, 03 Aug 2024 | HK$164.1b | HK$83.8b | HK$1.9b | 10.3x | 85.2x | 2x |
| Mon, 01 Jul 2024 | HK$178.1b | HK$83.4b | HK$1.8b | 10.7x | 97.7x | 2.1x |
| Wed, 29 May 2024 | HK$195.7b | HK$83.2b | HK$1.3b | 12.6x | 147.9x | 2.4x |
| Fri, 26 Apr 2024 | HK$177.5b | HK$83.1b | HK$1.2b | 11.5x | 144.6x | 2.1x |
| Sun, 24 Mar 2024 | HK$187.9b | HK$83.7b | HK$1.7b | 19.4x | 111.5x | 2.2x |
| Tue, 20 Feb 2024 | HK$180.5b | HK$82.9b | HK$590.3m | 23x | 305.7x | 2.2x |
| Thu, 18 Jan 2024 | HK$165.2b | HK$92.3b | -HK$1,302,503,994.00 | 20.3x | -126.9x | 1.8x |
| Sat, 16 Dec 2023 | HK$188.4b | HK$92.9b | -HK$1,293,547,605.00 | 19.2x | -145.7x | 2x |
| Mon, 13 Nov 2023 | HK$198.5b | HK$90.1b | -HK$8,412,091,308.00 | 15.8x | -23.6x | 2.2x |
| Wed, 11 Oct 2023 | HK$204.2b | HK$98.2b | -HK$8,079,894,636.00 | 15.3x | -25.3x | 2.1x |
| Fri, 08 Sep 2023 | HK$204.5b | HK$90.5b | -HK$8,627,963,954.00 | 16.8x | -23.7x | 2.3x |
| Sun, 06 Aug 2023 | HK$247.8b | HK$86.6b | -HK$12,508,859,649.00 | 19.2x | -19.8x | 2.9x |
| Tue, 04 Jul 2023 | HK$231.9b | HK$86.0b | -HK$12,536,512,359.00 | 23x | -18.5x | 2.7x |
| Thu, 01 Jun 2023 | HK$221.6b | HK$88.1b | -HK$12,200,841,896.00 | 22.6x | -18.2x | 2.5x |
Price to Earnings Ratio
-18.2x
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 15.4x which is lower than its 3-year average PE of 40.8x.
- The 3-year average PS ratio of 3.2x is lower than the industry's current PS ratio of 3.6x.
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 35% 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 | -1.48% | |
| Telecom | -2.07% | |
| Entertainment | -0.61% | |
| Interactive Home Entertainment | 0.33% | |
| Movies and Entertainment | -6.26% | |
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 8.9%, 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.
Forecasted Growth
- Analysts are most optimistic on the Interactive Home Entertainment industry, expecting annual earnings growth of 9.8% 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 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$181.50 | 1.4% +HK$8.0b | -3.8% | PE14.7x | |
| 1970 IMAX China Holding | HK$8.30 | 10.8% +HK$274.1m | 4.4% | PE9.5x | |
| 797 7Road Holdings | HK$0.62 | 8.8% +HK$136.2m | 82.4% | PE39.9x | |
| 3798 Homeland Interactive Technology | HK$1.27 | 8.5% +HK$118.6m | 13.4% | PE22.1x | |
| 6933 Sino-Entertainment Technology Holdings | HK$1.03 | 33.8% +HK$111.3m | 605.5% | PS13.4x |
