Major Estimate Revision • May 16
Consensus revenue estimates fall by 24% The consensus outlook for revenues in fiscal year 2026 has deteriorated. 2026 revenue forecast decreased from CN¥776.5m to CN¥587.0m. EPS estimate fell from CN¥1.26 to CN¥0.79 per share. Net income forecast to grow 526% next year vs 52% growth forecast for Software industry in China. Consensus price target of CN¥118 unchanged from last update. Share price rose 9.8% to CN¥108 over the past week. New Risk • May 15
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 8.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (8.4% average weekly change). Profit margins are more than 30% lower than last year (2.8% net profit margin). Annonce • Apr 30
Shanghai Suochen Information Technology Co.,Ltd., Annual General Meeting, May 22, 2026 Shanghai Suochen Information Technology Co.,Ltd., Annual General Meeting, May 22, 2026, at 14:30 China Standard Time. Location: 9F, No. 138, Huaihai Middle Road, Huangpu District, Shanghai China Reported Earnings • Apr 28
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: CN¥0.36 (down from CN¥0.47 in FY 2024). Revenue: CN¥465.8m (up 23% from FY 2024). Net income: CN¥31.5m (down 24% from FY 2024). Profit margin: 6.8% (down from 11% in FY 2024). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 16%. Earnings per share (EPS) also missed analyst estimates by 59%. Revenue is forecast to grow 23% p.a. on average during the next 2 years, compared to a 17% growth forecast for the Software industry in China. Over the last 3 years on average, earnings per share has fallen by 23% per year but the company’s share price has only fallen by 7% per year, which means it has not declined as severely as earnings. Annonce • Mar 30
Shanghai Suochen Information Technology Co.,Ltd. to Report Q1, 2026 Results on Apr 28, 2026 Shanghai Suochen Information Technology Co.,Ltd. announced that they will report Q1, 2026 results on Apr 28, 2026 New Risk • Mar 05
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 6.9% Last year net profit margin: 11% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 91% Paying a dividend despite having no free cash flows. Minor Risk Profit margins are more than 30% lower than last year (6.9% net profit margin). Annonce • Dec 26
Shanghai Suochen Information Technology Co.,Ltd. to Report Fiscal Year 2025 Results on Apr 28, 2026 Shanghai Suochen Information Technology Co.,Ltd. announced that they will report fiscal year 2025 results on Apr 28, 2026 New Risk • Nov 14
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 91% The company is paying a dividend despite having no free cash flows. Dividend yield: 0.4% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 91% Paying a dividend despite having no free cash flows. High level of non-cash earnings (23% accrual ratio). Minor Risk Share price has been volatile over the past 3 months (8.1% average weekly change). New Risk • Oct 30
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 23% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (9.5% average weekly change). High level of non-cash earnings (23% accrual ratio). Annonce • Sep 30
Shanghai Suochen Information Technology Co.,Ltd. to Report Q3, 2025 Results on Oct 30, 2025 Shanghai Suochen Information Technology Co.,Ltd. announced that they will report Q3, 2025 results on Oct 30, 2025 New Risk • Jul 17
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 7.2% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (28% accrual ratio). Minor Risk Share price has been volatile over the past 3 months (7.2% average weekly change). Annonce • Jun 30
Shanghai Suochen Information Technology Co.,Ltd. to Report First Half, 2025 Results on Aug 28, 2025 Shanghai Suochen Information Technology Co.,Ltd. announced that they will report first half, 2025 results on Aug 28, 2025 Major Estimate Revision • Apr 28
Consensus EPS estimates fall by 25% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from CN¥591.5m to CN¥555.8m. EPS estimate also fell from CN¥1.16 per share to CN¥0.87 per share. Net income forecast to grow 80% next year vs 57% growth forecast for Software industry in China. Consensus price target up from CN¥83.18 to CN¥99.89. Share price fell 6.7% to CN¥74.49 over the past week. Reported Earnings • Apr 22
First quarter 2025 earnings released: CN¥0.18 loss per share (vs CN¥0.24 loss in 1Q 2024) First quarter 2025 results: CN¥0.18 loss per share (improved from CN¥0.24 loss in 1Q 2024). Revenue: CN¥38.8m (up 22% from 1Q 2024). Net loss: CN¥15.6m (loss narrowed 27% from 1Q 2024). Revenue is forecast to grow 35% p.a. on average during the next 3 years, compared to a 17% growth forecast for the Software industry in China. Annonce • Apr 22
Shanghai Suochen Information Technology Co.,Ltd., Annual General Meeting, May 12, 2025 Shanghai Suochen Information Technology Co.,Ltd., Annual General Meeting, May 12, 2025, at 14:30 China Standard Time. Location: 51F, K11, No. 300, Huaihai Middle Road, Huangpu District, Shanghai China Annonce • Mar 28
Shanghai Suochen Information Technology Co.,Ltd. to Report Q1, 2025 Results on Apr 22, 2025 Shanghai Suochen Information Technology Co.,Ltd. announced that they will report Q1, 2025 results on Apr 22, 2025 Reported Earnings • Mar 03
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: CN¥0.47 (down from CN¥0.70 in FY 2023). Revenue: CN¥381.2m (up 19% from FY 2023). Net income: CN¥41.6m (down 28% from FY 2023). Profit margin: 11% (down from 18% in FY 2023). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 14%. Earnings per share (EPS) also missed analyst estimates by 43%. Revenue is forecast to grow 36% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Software industry in China. Annonce • Dec 27
Shanghai Suochen Information Technology Co.,Ltd. to Report Fiscal Year 2024 Results on Apr 22, 2025 Shanghai Suochen Information Technology Co.,Ltd. announced that they will report fiscal year 2024 results on Apr 22, 2025 Price Target Changed • Nov 01
Price target increased by 11% to CN¥71.52 Up from CN¥64.47, the current price target is an average from 3 analysts. New target price is 25% above last closing price of CN¥57.33. Stock is down 24% over the past year. The company is forecast to post earnings per share of CN¥0.83 for next year compared to CN¥0.70 last year. Reported Earnings • Oct 30
Third quarter 2024 earnings released: CN¥0.048 loss per share (vs CN¥0.056 loss in 3Q 2023) Third quarter 2024 results: CN¥0.048 loss per share (improved from CN¥0.056 loss in 3Q 2023). Revenue: CN¥31.1m (flat on 3Q 2023). Net loss: CN¥4.22m (loss narrowed 17% from 3Q 2023). Revenue is forecast to grow 35% p.a. on average during the next 3 years, compared to a 19% growth forecast for the Software industry in China. Annonce • Sep 30
Shanghai Suochen Information Technology Co.,Ltd. to Report Q3, 2024 Results on Oct 30, 2024 Shanghai Suochen Information Technology Co.,Ltd. announced that they will report Q3, 2024 results on Oct 30, 2024 Price Target Changed • Aug 29
Price target decreased by 10% to CN¥75.25 Down from CN¥83.90, the current price target is an average from 3 analysts. New target price is 79% above last closing price of CN¥42.10. Stock is down 53% over the past year. The company is forecast to post earnings per share of CN¥0.86 for next year compared to CN¥0.70 last year. New Risk • Aug 28
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 26% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (6.6% net profit margin). Reported Earnings • Aug 28
Second quarter 2024 earnings released: CN¥0.51 loss per share (vs CN¥0.15 loss in 2Q 2023) Second quarter 2024 results: CN¥0.51 loss per share (further deteriorated from CN¥0.15 loss in 2Q 2023). Revenue: CN¥19.9m (up 39% from 2Q 2023). Net loss: CN¥45.2m (loss widened 260% from 2Q 2023). Revenue is forecast to grow 33% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Software industry in China. Valuation Update With 7 Day Price Move • Aug 01
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥48.86, the stock trades at a forward P/E ratio of 51x. Average forward P/E is 30x in the Software industry in China. Total loss to shareholders of 44% over the past year. Annonce • Jun 29
Shanghai Suochen Information Technology Co.,Ltd. to Report First Half, 2024 Results on Aug 28, 2024 Shanghai Suochen Information Technology Co.,Ltd. announced that they will report first half, 2024 results on Aug 28, 2024 Valuation Update With 7 Day Price Move • Jun 18
Investor sentiment deteriorates as stock falls 33% After last week's 33% share price decline to CN¥53.42, the stock trades at a forward P/E ratio of 38x. Average forward P/E is 32x in the Software industry in China. Total loss to shareholders of 64% over the past year. Annonce • Apr 27
Shanghai Suochen Information Technology Co.,Ltd., Annual General Meeting, May 16, 2024 Shanghai Suochen Information Technology Co.,Ltd., Annual General Meeting, May 16, 2024, at 14:30 China Standard Time. Location: No. 27, Lane 676, Wuxing Road, Pudong New Area, Shanghai China Reported Earnings • Apr 26
First quarter 2024 earnings released: CN¥0.35 loss per share (vs CN¥0.43 loss in 1Q 2023) First quarter 2024 results: CN¥0.35 loss per share. Revenue: CN¥31.9m (up 346% from 1Q 2023). Net loss: CN¥21.3m (loss widened 9.0% from 1Q 2023). Revenue is forecast to grow 34% p.a. on average during the next 2 years, compared to a 22% growth forecast for the Software industry in China. Valuation Update With 7 Day Price Move • Apr 16
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to CN¥73.07, the stock trades at a forward P/E ratio of 48x. Average forward P/E is 28x in the Software industry in China. Total loss to shareholders of 57% over the past year. Annonce • Mar 30
Shanghai Suochen Information Technology Co.,Ltd. to Report Q1, 2024 Results on Apr 26, 2024 Shanghai Suochen Information Technology Co.,Ltd. announced that they will report Q1, 2024 results on Apr 26, 2024 Reported Earnings • Feb 27
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: CN¥1.03. Revenue: CN¥321.9m (up 20% from FY 2022). Net income: CN¥57.8m (up 7.5% from FY 2022). Profit margin: 18% (down from 20% in FY 2022). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 11%. Earnings per share (EPS) also missed analyst estimates by 13%. Revenue is forecast to grow 33% p.a. on average during the next 2 years, compared to a 22% growth forecast for the Software industry in China. Annonce • Feb 07
Shanghai Suochen Information Technology Co.,Ltd. (SHSE:688507) announces an Equity Buyback for CNY 40 million worth of its shares. Shanghai Suochen Information Technology Co.,Ltd. (SHSE:688507) announces a share repurchase program. Under the program, the company will repurchase up to CNY 40 million worth of its shares. The repurchase price will not be more than CNY 170 per share. The repurchased shares will be used for ESOP or equity incentives. The repurchase period will be not more than 12 months. Valuation Update With 7 Day Price Move • Feb 05
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to CN¥83.02, the stock trades at a forward P/E ratio of 58x. Average forward P/E is 26x in the Software industry in China. Reported Earnings • Nov 02
Third quarter 2023 earnings released: CN¥0.082 loss per share (vs CN¥0.98 profit in 3Q 2022) Third quarter 2023 results: CN¥0.082 loss per share (down from CN¥0.98 profit in 3Q 2022). Revenue: CN¥30.9m (down 76% from 3Q 2022). Net loss: CN¥5.09m (down 111% from profit in 3Q 2022). Revenue is forecast to grow 34% p.a. on average during the next 3 years, compared to a 24% growth forecast for the Software industry in China. Reported Earnings • Aug 28
Second quarter 2023 earnings released Second quarter 2023 results: CN¥0.22 loss per share. Net loss: CN¥12.5m (flat on 2Q 2022). Revenue is forecast to grow 32% p.a. on average during the next 3 years, compared to a 23% growth forecast for the Software industry in China. Reported Earnings • Apr 29
First quarter 2023 earnings released First quarter 2023 results: CN¥0.63 loss per share. Net loss: CN¥19.5m (flat on 1Q 2022).