We Think Inspur Digital Enterprise Technology's (HKG:596) Profit Is Only A Baseline For What They Can Achieve
May 06
Hong Kong (HSI) Software Industry Analysis
UpdatedMay 19, 2024
DataAggregated Company Financials
Companies36
- 7D-0.8%
- 3M29.3%
- 1Y-32.9%
- YTD-2.0%
Last week, the Software industry hasn't moved much but Ming Yuan Cloud Group Holdings is up 12% in that time. Unfortunately though, the industry is down 33% over the past 12 months. Looking forward, earnings are forecast to grow by 57% annually.
Industry Valuation and Performance
Has the Hong Kong Software Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 19 May 2024 | HK$155.4b | HK$58.4b | -HK$15,499,654,806.10 | 14x | -10x | 2.7x |
| Tue, 16 Apr 2024 | HK$114.9b | HK$58.5b | -HK$15,519,975,478.34 | 14x | -7.4x | 2x |
| Thu, 14 Mar 2024 | HK$114.9b | HK$54.8b | -HK$15,415,846,117.30 | 11.1x | -7.5x | 2.1x |
| Sat, 10 Feb 2024 | HK$101.5b | HK$55.3b | -HK$15,633,319,351.98 | 9.9x | -6.5x | 1.8x |
| Mon, 08 Jan 2024 | HK$151.2b | HK$63.4b | -HK$15,338,087,247.00 | 9x | -9.9x | 2.4x |
| Wed, 06 Dec 2023 | HK$146.5b | HK$63.4b | -HK$15,355,566,317.00 | 13.5x | -9.5x | 2.3x |
| Fri, 03 Nov 2023 | HK$136.9b | HK$61.4b | -HK$9,163,035,032.00 | 11.2x | -14.9x | 2.2x |
| Sun, 01 Oct 2023 | HK$135.0b | HK$53.3b | -HK$9,665,899,255.00 | 11.9x | -14x | 2.5x |
| Tue, 29 Aug 2023 | HK$157.4b | HK$50.7b | -HK$9,528,695,218.00 | 15.6x | -16.5x | 3.1x |
| Thu, 27 Jul 2023 | HK$167.6b | HK$50.6b | -HK$10,721,455,291.00 | 21.7x | -15.6x | 3.3x |
| Sat, 24 Jun 2023 | HK$173.2b | HK$50.6b | -HK$10,702,437,234.00 | 18.7x | -16.2x | 3.4x |
| Mon, 22 May 2023 | HK$185.2b | HK$51.6b | -HK$11,191,131,903.00 | 14.4x | -16.5x | 3.6x |
| Wed, 19 Apr 2023 | HK$221.3b | HK$52.8b | -HK$11,702,871,711.00 | 16.7x | -18.9x | 4.2x |
| Fri, 17 Mar 2023 | HK$217.6b | HK$50.9b | -HK$25,893,285,385.00 | 14.3x | -8.4x | 4.3x |
| Sun, 12 Feb 2023 | HK$245.7b | HK$50.6b | -HK$26,615,191,711.00 | 17.3x | -9.2x | 4.9x |
| Tue, 10 Jan 2023 | HK$238.6b | HK$50.6b | -HK$26,570,143,976.00 | 18.1x | -9x | 4.7x |
| Thu, 08 Dec 2022 | HK$209.5b | HK$49.2b | -HK$25,640,314,842.00 | 12.7x | -8.2x | 4.3x |
| Sat, 05 Nov 2022 | HK$163.0b | HK$47.9b | -HK$25,129,742,029.00 | 18.6x | -6.5x | 3.4x |
| Mon, 03 Oct 2022 | HK$155.1b | HK$48.9b | -HK$25,779,374,501.00 | 12.8x | -6x | 3.2x |
| Wed, 31 Aug 2022 | HK$213.6b | HK$48.6b | -HK$26,534,639,616.00 | 26.6x | -8x | 4.4x |
| Fri, 29 Jul 2022 | HK$232.1b | HK$48.4b | -HK$42,031,023,236.00 | 13x | -5.5x | 4.8x |
| Sun, 26 Jun 2022 | HK$363.4b | HK$42.1b | -HK$41,023,302,085.00 | 11.1x | -8.9x | 8.6x |
| Tue, 24 May 2022 | HK$309.6b | HK$42.0b | -HK$40,969,278,158.00 | 13.4x | -7.6x | 7.4x |
| Thu, 21 Apr 2022 | HK$312.8b | HK$43.6b | -HK$42,310,119,443.00 | 17.4x | -7.4x | 7.2x |
| Sat, 19 Mar 2022 | HK$153.5b | HK$35.3b | -HK$19,049,448,615.00 | 13x | -8.1x | 4.3x |
| Mon, 14 Feb 2022 | HK$192.5b | HK$34.0b | -HK$19,138,396,109.00 | 13.2x | -10.1x | 5.7x |
| Wed, 12 Jan 2022 | HK$193.7b | HK$33.0b | -HK$18,387,967,160.00 | 13.5x | -10.5x | 5.9x |
| Fri, 10 Dec 2021 | HK$220.2b | HK$33.1b | -HK$18,482,642,879.00 | 13.3x | -11.9x | 6.7x |
| Sun, 07 Nov 2021 | HK$232.2b | HK$32.9b | -HK$18,234,241,301.00 | 16x | -12.7x | 7.1x |
| Tue, 05 Oct 2021 | HK$250.6b | HK$32.7b | -HK$18,103,762,905.00 | 14.4x | -13.8x | 7.7x |
| Thu, 02 Sep 2021 | HK$318.2b | HK$39.9b | -HK$16,758,870,486.73 | 13.5x | -19x | 8x |
| Sat, 31 Jul 2021 | HK$307.1b | HK$39.9b | -HK$16,758,870,486.73 | 12.5x | -18.3x | 7.7x |
Price to Earnings Ratio
-48.5x
Current Industry PE
- Investors are pessimistic on the Hong Kong Software industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The 3-year average PS ratio of 4.9x is higher than the industry's current PS ratio of 2.7x.
Past Earnings Growth
- The earnings for companies in the Software industry have deteriorated over the last three years.
- Meanwhile revenues for these companies have grown 16% 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 caused losses to expand.
Industry Trends
Which industries have driven the changes within the Hong Kong Tech industry?
| HK Market | 2.56% | |
| Tech | 1.60% | |
| Software | -0.81% | |
| Systems Software | 10.21% | |
| Application Software | -1.28% | |
Industry PE
Forecasted Growth
- Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 77% over the next 5 years.
- This is better than its past earnings growth rate of 57% per year.
- In contrast, the Application Software industry is expected to see its earnings grow by 56% 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 | |
|---|---|---|---|---|---|
| 909 Ming Yuan Cloud Group Holdings | HK$3.31 | 12.2% +HK$672.4m | -10.3% | PS3.5x | |
| 9911 Newborn Town | HK$3.97 | 12.8% +HK$525.1m | 157.8% | PE8.4x | |
| 2013 Weimob | HK$1.74 | 4.2% +HK$215.4m | -55.4% | PS2.2x | |
| 9959 Linklogis | HK$1.91 | 5.5% +HK$204.7m | -27.1% | PS4.3x | |
| 6682 Beijing Fourth Paradigm Technology | HK$52.00 | 0.8% +HK$186.3m | n/a | PS5.3x |
