Investors Appear Satisfied With BYD Electronic (International) Company Limited's (HKG:285) Prospects As Shares Rocket 30%
May 13
Hong Kong (HSI) Tech Sector Analysis
UpdatedMay 19, 2024
DataAggregated Company Financials
Companies204
- 7D1.6%
- 3M25.1%
- 1Y1.0%
- YTD6.7%
The Tech industry is up 1.6% in the last week, with Xiaomi up 2.8%. During this same period, the Xinyi Solar Holdings underperformed, falling 8.7%. Overall in the last year, the industry is flat. As for the next few years, earnings are expected to grow by 20% per annum.
Sector Valuation and Performance
Has the Hong Kong Tech Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 19 May 2024 | HK$1.7t | HK$2.2t | HK$40.8b | 12.2x | 42.2x | 0.8x |
| Tue, 16 Apr 2024 | HK$1.5t | HK$2.3t | HK$44.6b | 11.2x | 33.7x | 0.7x |
| Thu, 14 Mar 2024 | HK$1.6t | HK$2.2t | HK$64.4b | 9.8x | 24.1x | 0.7x |
| Sat, 10 Feb 2024 | HK$1.3t | HK$2.3t | HK$64.4b | 9.3x | 20.5x | 0.6x |
| Mon, 08 Jan 2024 | HK$1.6t | HK$2.3t | HK$66.2b | 9.8x | 23.7x | 0.7x |
| Wed, 06 Dec 2023 | HK$1.5t | HK$2.3t | HK$66.4b | 10x | 23.2x | 0.7x |
| Fri, 03 Nov 2023 | HK$1.6t | HK$2.3t | HK$71.1b | 10x | 22.2x | 0.7x |
| Sun, 01 Oct 2023 | HK$1.5t | HK$2.3t | HK$70.2b | 10.1x | 21.3x | 0.7x |
| Tue, 29 Aug 2023 | HK$1.6t | HK$2.3t | HK$74.3b | 10.1x | 21.2x | 0.7x |
| Thu, 27 Jul 2023 | HK$1.6t | HK$2.4t | HK$82.1b | 9.7x | 19x | 0.7x |
| Sat, 24 Jun 2023 | HK$1.5t | HK$2.4t | HK$82.9b | 8.6x | 18.5x | 0.6x |
| Mon, 22 May 2023 | HK$1.6t | HK$2.5t | HK$79.9b | 8.7x | 20x | 0.6x |
| Wed, 19 Apr 2023 | HK$1.8t | HK$2.5t | HK$81.3b | 9.5x | 22.1x | 0.7x |
| Fri, 17 Mar 2023 | HK$1.7t | HK$2.5t | HK$73.6b | 8.6x | 23.1x | 0.7x |
| Sun, 12 Feb 2023 | HK$1.9t | HK$2.6t | HK$76.5b | 8.8x | 24.3x | 0.7x |
| Tue, 10 Jan 2023 | HK$1.8t | HK$2.6t | HK$76.3b | 8.3x | 23.3x | 0.7x |
| Thu, 08 Dec 2022 | HK$1.6t | HK$2.5t | HK$76.6b | 8.2x | 21.5x | 0.6x |
| Sat, 05 Nov 2022 | HK$1.5t | HK$2.5t | HK$77.3b | 8x | 19.9x | 0.6x |
| Mon, 03 Oct 2022 | HK$1.4t | HK$2.5t | HK$77.2b | 8x | 18.7x | 0.6x |
| Wed, 31 Aug 2022 | HK$1.7t | HK$2.6t | HK$77.7b | 9.5x | 21.6x | 0.7x |
| Fri, 29 Jul 2022 | HK$1.8t | HK$2.6t | HK$81.3b | 8.7x | 22x | 0.7x |
| Sun, 26 Jun 2022 | HK$2.0t | HK$2.6t | HK$82.5b | 8.5x | 23.8x | 0.8x |
| Tue, 24 May 2022 | HK$1.9t | HK$2.6t | HK$81.6b | 8.5x | 22.9x | 0.7x |
| Thu, 21 Apr 2022 | HK$1.9t | HK$2.7t | HK$90.2b | 9.6x | 20.7x | 0.7x |
| Sat, 19 Mar 2022 | HK$1.8t | HK$2.5t | HK$127.6b | 9.9x | 14.5x | 0.7x |
| Mon, 14 Feb 2022 | HK$2.1t | HK$2.5t | HK$123.2b | 11.3x | 17x | 0.8x |
| Wed, 12 Jan 2022 | HK$2.2t | HK$2.5t | HK$123.4b | 11.1x | 17.8x | 0.9x |
| Fri, 10 Dec 2021 | HK$2.4t | HK$2.5t | HK$123.6b | 11x | 19.1x | 0.9x |
| Sun, 07 Nov 2021 | HK$2.3t | HK$2.5t | HK$127.8b | 11.3x | 18.2x | 0.9x |
| Tue, 05 Oct 2021 | HK$2.3t | HK$2.4t | HK$126.6b | 11.1x | 17.9x | 0.9x |
| Thu, 02 Sep 2021 | HK$2.7t | HK$2.5t | HK$119.4b | 12.7x | 22.6x | 1.1x |
| Sat, 31 Jul 2021 | HK$2.6t | HK$2.5t | HK$119.4b | 12.3x | 22x | 1.1x |
Price to Earnings Ratio
27.2x
Current Industry PE
- Investors are optimistic on the Hong Kong Information Technology industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 42.2x which is higher than its 3-year average PE of 21.9x.
- The industry is trading close to its 3-year average PS ratio of 0.76x.
Past Earnings Growth
- The earnings for companies in the Information Technology industry have declined 26% per year over the last three years.
- Meanwhile revenues have remained mostly flat.
- This means that although sales have remained flat, 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 Hong Kong Tech sector?
| HK Market | 2.56% | |
| Tech | 1.60% | |
| IT | 3.57% | |
| Communications | 3.02% | |
| Electronic Equipment and Components | 2.64% | |
| Tech Hardware | 2.48% | |
| Semiconductors | -0.039% | |
| Software | -0.81% | |
Industry PE
- Investors are most optimistic about the Tech Hardware industry which is trading above its 3-year average PE ratio of 15.6x.
- Analysts are expecting annual earnings growth of 13.7%, which is higher than its past year's earnings decline of 32.2% per year.
Forecasted Growth
- Analysts are most optimistic on the Software industry, expecting annual earnings growth of 57% over the next 5 years.
- This is roughly in line with its past earnings growth rate.
- In contrast, the Tech Hardware industry is expected to see its earnings grow by 14% 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 | |
|---|---|---|---|---|---|
| 1810 Xiaomi | HK$19.94 | 2.8% +HK$13.5b | 83.6% | PE26.3x | |
| 981 Semiconductor Manufacturing International | HK$16.84 | 3.6% +HK$4.6b | -19.0% | PE23.1x | |
| 3969 China Railway Signal & Communication | HK$3.54 | 6.3% +HK$2.2b | 5.4% | PE10.2x | |
| 1888 Kingboard Laminates Holdings | HK$8.50 | 9.0% +HK$2.2b | 8.0% | PE29.2x | |
| 1347 Hua Hong Semiconductor | HK$19.26 | 6.9% +HK$2.1b | -28.7% | PE26.5x |
