Why Investors Shouldn't Be Surprised By Greatech Technology Berhad's (KLSE:GREATEC) P/E
Nov 21
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Malaysian (KLSE) Tech Sector Analysis
UpdatedNov 21, 2024
DataAggregated Company Financials
Companies119
- 7D-0.9%
- 3M-13.6%
- 1Y-4.1%
- YTD-3.0%
Over the last 7 days, the Tech industry has remained flat, although notably VSTECS Berhad gained 19%. As for the longer term, the industry has declined 4.1% in the last year. Looking forward, earnings are forecast to grow by 25% annually.
Sector Valuation and Performance
Has the Malaysian Tech Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 21 Nov 2024 | RM 78.8b | RM 33.5b | RM 1.2b | 30.8x | 63.9x | 2.4x |
| Sat, 19 Oct 2024 | RM 78.0b | RM 33.0b | RM 1.2b | 32.5x | 64.1x | 2.4x |
| Mon, 16 Sep 2024 | RM 79.1b | RM 32.9b | RM 1.2b | 33.6x | 65.2x | 2.4x |
| Wed, 14 Aug 2024 | RM 94.0b | RM 32.7b | RM 1.2b | 40.8x | 81.5x | 2.9x |
| Fri, 12 Jul 2024 | RM 105.8b | RM 32.7b | RM 1.2b | 42.4x | 91x | 3.2x |
| Sun, 09 Jun 2024 | RM 95.8b | RM 32.6b | RM 1.1b | 37x | 85.7x | 2.9x |
| Tue, 07 May 2024 | RM 84.3b | RM 32.3b | RM 998.1m | 28.9x | 84.4x | 2.6x |
| Thu, 04 Apr 2024 | RM 82.4b | RM 32.3b | RM 1.0b | 27.2x | 79.8x | 2.6x |
| Sat, 02 Mar 2024 | RM 79.2b | RM 32.6b | RM 1.0b | 25.7x | 77.8x | 2.4x |
| Mon, 29 Jan 2024 | RM 79.3b | RM 33.4b | RM 910.6m | 25.2x | 87.1x | 2.4x |
| Wed, 27 Dec 2023 | RM 79.8b | RM 33.4b | RM 908.7m | 24.3x | 87.9x | 2.4x |
| Fri, 24 Nov 2023 | RM 79.5b | RM 33.6b | RM 1.2b | 24.2x | 67.9x | 2.4x |
| Sun, 22 Oct 2023 | RM 77.5b | RM 33.8b | RM 1.3b | 24.3x | 60.3x | 2.3x |
| Tue, 19 Sep 2023 | RM 78.9b | RM 33.5b | RM 1.3b | 25x | 62.9x | 2.4x |
| Thu, 17 Aug 2023 | RM 81.5b | RM 34.3b | RM 1.5b | 24.1x | 53.5x | 2.4x |
| Sat, 15 Jul 2023 | RM 83.1b | RM 34.6b | RM 1.8b | 23.2x | 47.3x | 2.4x |
| Mon, 12 Jun 2023 | RM 75.6b | RM 34.4b | RM 1.8b | 21.3x | 42.8x | 2.2x |
| Wed, 10 May 2023 | RM 75.4b | RM 35.1b | RM 2.4b | 20.3x | 31.8x | 2.1x |
| Fri, 07 Apr 2023 | RM 79.0b | RM 35.2b | RM 2.4b | 21x | 32.6x | 2.2x |
| Sun, 05 Mar 2023 | RM 79.4b | RM 35.0b | RM 2.4b | 20.1x | 33.2x | 2.3x |
| Tue, 31 Jan 2023 | RM 90.3b | RM 36.4b | RM 2.8b | 23.4x | 31.8x | 2.5x |
| Thu, 29 Dec 2022 | RM 80.3b | RM 35.6b | RM 2.8b | 21x | 29x | 2.3x |
| Sat, 26 Nov 2022 | RM 76.8b | RM 35.1b | RM 2.8b | 20.8x | 27.5x | 2.2x |
| Mon, 24 Oct 2022 | RM 70.6b | RM 34.6b | RM 2.8b | 21.1x | 25.6x | 2x |
| Wed, 21 Sep 2022 | RM 76.7b | RM 34.5b | RM 2.8b | 22x | 27.4x | 2.2x |
| Fri, 19 Aug 2022 | RM 80.4b | RM 32.2b | RM 2.2b | 23.3x | 36.7x | 2.5x |
| Sun, 17 Jul 2022 | RM 70.8b | RM 32.2b | RM 2.1b | 18.5x | 33x | 2.2x |
| Tue, 14 Jun 2022 | RM 76.0b | RM 32.3b | RM 2.2b | 21.5x | 35.2x | 2.4x |
| Thu, 12 May 2022 | RM 77.4b | RM 32.2b | RM 2.2b | 20.9x | 34.8x | 2.4x |
| Sat, 09 Apr 2022 | RM 87.9b | RM 32.0b | RM 2.2b | 22.8x | 40.6x | 2.7x |
| Mon, 07 Mar 2022 | RM 80.5b | RM 31.4b | RM 2.2b | 20.5x | 37x | 2.6x |
| Wed, 02 Feb 2022 | RM 92.7b | RM 30.8b | RM 2.2b | 26.3x | 42.7x | 3x |
| Fri, 31 Dec 2021 | RM 107.7b | RM 30.7b | RM 2.1b | 30.7x | 50.9x | 3.5x |
| Sun, 28 Nov 2021 | RM 108.1b | RM 30.8b | RM 2.1b | 29.4x | 52.2x | 3.5x |
Price to Earnings Ratio
52.2x
Current Industry PE
- Investors are optimistic on the Malaysian Information Technology industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 63.9x which is higher than its 3-year average PE of 52.9x.
- The industry is trading close to its 3-year average PS ratio of 2.5x.
Past Earnings Growth
- The earnings for companies in the Information Technology industry have declined 16% per year over the last three years.
- Meanwhile revenues for these companies have grown 2.8% 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 Malaysian Tech sector?
| MY Market | -0.17% | |
| Tech | -0.91% | |
| Software | 3.94% | |
| Electronic Equipment and Components | 1.85% | |
| IT | 0.84% | |
| Tech Hardware | -1.36% | |
| Semiconductors | -3.04% | |
| Communications | -7.90% | |
Industry PE
- Investors are most optimistic about the Electronic Equipment and Components industry which is trading above its 3-year average PE ratio of 52.1x.
- Analysts are expecting annual earnings growth of 23.6%, which is higher than its past year's earnings growth of 1.5% per year.
Forecasted Growth
- Analysts are most optimistic on the Semiconductors industry, expecting annual earnings growth of 26% over the next 5 years.
- This is better than its past earnings decline of 7.7% per year.
- In contrast, the Software industry is expected to see its earnings grow by 7.2% 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 | |
|---|---|---|---|---|---|
| NATGATE NationGate Holdings Berhad | RM 2.30 | 4.5% +RM 227.7m | 67.9% | PE63.3x | |
| VSTECS VSTECS Berhad | RM 3.77 | 7.4% +RM 92.7m | 179.3% | PE18.3x | |
| ITMAX ITMAX System Berhad | RM 3.65 | 2.5% +RM 92.7m | 101.7% | PE53.6x | |
| IFCAMSC IFCA MSC Berhad | RM 0.66 | 23.4% +RM 75.5m | 131.6% | PE29.5x | |
| D&O D & O Green Technologies Berhad | RM 2.17 | 0.9% +RM 32.3m | -38.9% | PE58x |
