Malaysian (KLSE) IT Industry Analysis
UpdatedMar 20, 2023
DataAggregated Company Financials
Companies26
- 7D-1.7%
- 3M-1.9%
- 1Y-28.5%
- YTD0.6%
Over the last 7 days, the IT industry has dropped 1.7%, driven by Dagang NeXchange Berhad declining 3.4%. In contrast, LGMS Berhad has gained 8.5%. The industry has fallen 28% in the last year. Earnings are forecast to grow by 16% annually.
Industry Valuation and Performance
Has the Malaysian IT Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 20 Mar 2023 | RM6.2b | RM4.3b | RM356.6m | 27.7x | 17.3x | 1.4x |
| Wed, 15 Feb 2023 | RM8.4b | RM5.0b | RM386.6m | 30.6x | 21.7x | 1.7x |
| Fri, 13 Jan 2023 | RM14.8b | RM5.7b | RM773.4m | 29.6x | 19.1x | 2.6x |
| Sun, 11 Dec 2022 | RM15.1b | RM6.0b | RM819.9m | 25.9x | 18.5x | 2.5x |
| Tue, 08 Nov 2022 | RM14.7b | RM5.4b | RM960.3m | 31.7x | 15.3x | 2.7x |
| Thu, 06 Oct 2022 | RM14.5b | RM5.4b | RM983.2m | 30x | 14.7x | 2.7x |
| Sat, 03 Sep 2022 | RM14.5b | RM5.4b | RM983.2m | 29.3x | 14.7x | 2.7x |
| Mon, 01 Aug 2022 | RM14.2b | RM4.0b | RM453.4m | 17.7x | 31.4x | 3.6x |
| Wed, 29 Jun 2022 | RM15.1b | RM4.0b | RM447.8m | 31.7x | 33.7x | 3.8x |
| Fri, 27 May 2022 | RM16.0b | RM3.9b | RM385.1m | 33.3x | 41.5x | 4.1x |
| Sun, 24 Apr 2022 | RM17.4b | RM3.8b | RM384.5m | 35.2x | 45.3x | 4.6x |
| Tue, 22 Mar 2022 | RM16.6b | RM3.8b | RM373.5m | 40.6x | 44.5x | 4.4x |
| Thu, 17 Feb 2022 | RM18.2b | RM3.4b | RM340.4m | 31.1x | 53.6x | 5.4x |
| Sat, 15 Jan 2022 | RM16.9b | RM3.4b | RM340.8m | 28.5x | 49.5x | 5x |
| Mon, 13 Dec 2021 | RM16.9b | RM3.4b | RM340.8m | 27.4x | 49.7x | 5x |
| Wed, 10 Nov 2021 | RM17.8b | RM3.3b | RM335.8m | 20.9x | 53.1x | 5.4x |
| Fri, 08 Oct 2021 | RM17.0b | RM3.3b | RM334.1m | 21.9x | 50.7x | 5.2x |
| Sun, 05 Sep 2021 | RM17.2b | RM3.3b | RM272.3m | 20.4x | 63.3x | 5.2x |
| Tue, 03 Aug 2021 | RM16.3b | RM3.3b | RM272.3m | 20.3x | 60x | 5x |
| Fri, 07 May 2021 | RM17.8b | RM3.2b | RM235.2m | 24.6x | 75.8x | 5.6x |
| Mon, 08 Feb 2021 | RM14.2b | RM3.1b | RM226.0m | 21x | 62.6x | 4.6x |
| Sun, 01 Nov 2020 | RM11.0b | RM3.2b | RM290.3m | 19.5x | 37.8x | 3.4x |
| Wed, 05 Aug 2020 | RM11.4b | RM3.2b | RM240.4m | 18.1x | 47.3x | 3.5x |
| Sat, 09 May 2020 | RM9.7b | RM3.1b | RM272.5m | 15.6x | 35.4x | 3.1x |
Price to Earnings Ratio
27.5x
Current Industry PE
- Investors are pessimistic on the Malaysian IT 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 17.3x which is lower than its 3-year average PE of 44.2x.
- The 3-year average PS ratio of 4.0x is higher than the industry's current PS ratio of 1.4x.
Past Earnings Growth
- The earnings for companies in the IT industry have grown 9.4% per year over the last three years.
- Revenues for these companies have grown 11% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the Malaysian Tech industry?
| MY Market | -1.13% | |
| Tech | -2.11% | |
| IT | -1.67% | |
| Data Processing Services | 0% | |
| IT Consulting | -1.29% | |
| Internet Services and Infrastructure | -7.68% | |
Industry PE
- Investors are most optimistic about the Internet Services and Infrastructure industry even though it's trading below its 3-year average PE ratio of 33.1x.
- It looks like they are confident that earnings will grow faster in the future than they have historically.
Forecasted Growth
- Analysts are most optimistic on the IT Consulting industry, expecting annual earnings growth of 16% over the next 5 years.
- This is better than its past earnings growth rate of 12% per year.
- In contrast, the IT Consulting industry is expected to see its earnings grow by 16% 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 | |
|---|---|---|---|---|---|
| LGMS LGMS Berhad | RM1.27 | 8.5% +RM45.6m | n/a | PE50.2x | |
| ZENTECH Zen Tech International Berhad | RM0.03 | 50.0% +RM24.3m | -60.0% | PS2.4x | |
| LYC LYC Healthcare Berhad | RM0.28 | 3.8% +RM5.9m | 10.0% | PS1.9x | |
| MSNIAGA Mesiniaga Berhad | RM1.36 | 4.6% +RM3.6m | -9.3% | PE12.6x | |
| DATAPRP Dataprep Holdings Bhd | RM0.18 | 2.8% +RM3.4m | -42.2% | PS4.4x |