Taiwanese (TAIEX) Tech Sector Analysis
- 7D0.4%
- 3M3.1%
- 1Y26.8%
- YTD18.0%
Over the last 7 days, the Tech industry has dropped 1.3%, driven by a decline by Taiwan Semiconductor Manufacturing of 0.5%. Meanwhile, United Microelectronics actually outperformed within the industry, gaining 6.2% in the last week. This takes the industry's 12 month performance to a gain of 27%.
Sector Valuation and Performance
Has the Taiwanese Tech Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Thu, 02 Dec 2021 | NT$35.5t | NT$24.9t | NT$1.9t | 18.3x |
| Sat, 30 Oct 2021 | NT$33.6t | NT$24.5t | NT$1.8t | 17.9x |
| Mon, 27 Sep 2021 | NT$34.0t | NT$24.3t | NT$1.7t | 17.9x |
| Wed, 25 Aug 2021 | NT$33.5t | NT$24.3t | NT$1.7t | 18.1x |
| Thu, 01 Jul 2021 | NT$34.2t | NT$24.3t | NT$1.7t | 18.2x |
| Sun, 04 Apr 2021 | NT$33.6t | NT$23.5t | NT$1.6t | 19.5x |
| Wed, 06 Jan 2021 | NT$29.2t | NT$22.2t | NT$1.3t | 19x |
| Sat, 10 Oct 2020 | NT$23.8t | NT$21.3t | NT$1.2t | 17x |
| Fri, 03 Jul 2020 | NT$20.6t | NT$21.0t | NT$1.1t | 17.7x |
| Mon, 06 Apr 2020 | NT$16.7t | NT$20.7t | NT$979.4b | 13.9x |
| Thu, 09 Jan 2020 | NT$20.7t | NT$20.9t | NT$941.5b | 18.8x |
| Wed, 02 Oct 2019 | NT$17.7t | NT$21.0t | NT$958.2b | 16.2x |
| Sat, 06 Jul 2019 | NT$16.3t | NT$21.0t | NT$981.7b | 15.4x |
| Tue, 09 Apr 2019 | NT$16.6t | NT$20.8t | NT$1.0t | 15.2x |
| Mon, 31 Dec 2018 | NT$14.7t | NT$20.8t | NT$1.1t | 13.9x |
13.6x
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 17.1x. 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 grown 18% per year over the last three years, and revenues for these companies have grown 6.8% 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 Taiwanese Tech sector?
| Electronic Equipment and Components | 0.74% | |
| Tech Hardware | 0.33% | |
| Semiconductors | 0.32% | |
| IT | 0.30% | |
| Software | -1.09% | |
| Communications | -2.19% | |
Industry PE: Investors are most optimistic about the Semiconductors industry which is trading above its 3-year average PE ratio of 19.6x. However analysts are expecting annual earnings growth of 15%, which is lower than the prior year's growth of 66% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Tech Hardware industry. Although, investor sentiment seems to have improved given its trading above its 3-year average of 14.9x.
Forecasted Growth: Analysts are most optimistic on the Communications industry, expecting annual earnings growth of 33% over the next 5 years. This is better than it's past earnings growth rate of 12% per year. Meanwhile, the Tech Hardware industry is expected to see its earnings growth to stay flat 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 | |
|---|---|---|---|---|
| 2303 United Microelectronics | 6.2%+NT$48.6b | 61.6% | PE18.7x | |
| 2454 MediaTek | 2.4%+NT$39.8b | 49.6% | PE17.6x | |
| 3037 Unimicron Technology | 12.6%+NT$36.9b | 162.3% | PE32.1x | |
| 8046 Nan Ya Printed Circuit Board | 7.4%+NT$27.1b | 242.5% | PE47x | |
| 3532 Formosa Sumco Technology | 13.8%+NT$12.4b | 82.1% | PE77x |