South Korean (KOSPI) Tech Sector Analysis
- 7D3.4%
- 3M3.7%
- 1Y8.2%
- YTD-3.0%
Over the last 7 days, the Tech industry has risen 2.4%, driven by gains from Samsung Electronics of 4.6%. Meanwhile, Kakao Pay actually underperformed within the industry, shrinking 8.1% in the last week. This takes the industry's 12 month performance to a gain of 8.9%.
Sector Valuation and Performance
Has the South Korean Tech Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Thu, 09 Dec 2021 | ₩878.1t | ₩485.3t | ₩52.0t | 19.2x |
| Sat, 06 Nov 2021 | ₩806.7t | ₩475.5t | ₩48.4t | 20.1x |
| Mon, 04 Oct 2021 | ₩791.2t | ₩467.5t | ₩43.2t | 19.2x |
| Wed, 01 Sep 2021 | ₩839.0t | ₩470.2t | ₩42.9t | 22.2x |
| Thu, 08 Jul 2021 | ₩873.0t | ₩470.2t | ₩42.9t | 22.3x |
| Wed, 31 Mar 2021 | ₩864.7t | ₩448.2t | ₩37.1t | 22.3x |
| Sat, 02 Jan 2021 | ₩839.7t | ₩427.2t | ₩33.8t | 23x |
| Tue, 06 Oct 2020 | ₩621.1t | ₩416.9t | ₩27.0t | 21x |
| Fri, 10 Jul 2020 | ₩561.5t | ₩406.2t | ₩23.9t | 18.4x |
| Thu, 02 Apr 2020 | ₩487.3t | ₩408.1t | ₩23.2t | 14.2x |
| Sun, 05 Jan 2020 | ₩572.7t | ₩403.3t | ₩23.8t | 19.5x |
| Wed, 09 Oct 2019 | ₩505.4t | ₩404.0t | ₩33.6t | 16.3x |
| Tue, 02 Jul 2019 | ₩489.7t | ₩410.5t | ₩45.1t | 18x |
| Fri, 05 Apr 2019 | ₩473.0t | ₩415.2t | ₩55.4t | 16x |
| Mon, 07 Jan 2019 | ₩412.3t | ₩423.3t | ₩64.0t | 12.9x |
12.9x
Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 19.1x. It appears they believe that earnings will grow in-line with historical growth rates.
Past Earnings Growth: The earnings for companies in the Information Technology industry have declined 8.2% per year over the last three years, while revenues for these companies have grown 4.2% per year. This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the South Korean Tech sector?
| Communications | 6.87% | |
| Semiconductors | 5.36% | |
| Tech Hardware | 4.05% | |
| Software | 1.09% | |
| Electronic Equipment and Components | 0.26% | |
| IT | -1.05% | |
Industry PE: Investors are most optimistic about the Software industry, which is trading close to its 3-year average PE ratio of 23.8x. However analysts expect its future annual earnings growth (25%) to be largely in line with prior year's earnings growth, so the market might believe analysts are underestimating its future growth since investors are willing to pay a bigger premium today. Meanwhile, investors are most pessimistic about the Tech Hardware industry, which is trading below its 3-year average of 18.7x.
Forecasted Growth: Analysts are most optimistic on the Communications industry, expecting annual earnings growth of 76% over the next 5 years. This is better than it's past earnings growth rate of 0.9% per year. Meanwhile, the Tech Hardware industry is expected to see its earnings grow by 9.7% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | 7D | 1Y | Valuation | |
|---|---|---|---|---|
| A005930 Samsung Electronics | 2.1%+₩10.9t | 6.2% | PE15x | |
| A006400 Samsung SDI | 3.7%+₩1.7t | 26.8% | PE43x | |
| A108320 LX Semicon | 36.6%+₩648.9b | 194.5% | PE9.9x | |
| A034220 LG Display | 8.8%+₩626.2b | 30.0% | PE4.9x | |
| A018260 Samsung SDSLtd | 3.0%+₩348.1b | -10.3% | PE17.9x |