Buy Or Sell Opportunity • Apr 30
Now 21% overvalued Over the last 90 days, the stock has fallen 20% to CN¥9.73. The fair value is estimated to be CN¥8.06, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 3.5% over the last 3 years. Earnings per share has grown by 9.5%. Revenue is forecast to grow by 40% in a year. Earnings are forecast to grow by 109% in the next year. Reported Earnings • Apr 28
Full year 2025 earnings released: EPS: CN¥0.41 (vs CN¥0.73 in FY 2024) Full year 2025 results: EPS: CN¥0.41 (down from CN¥0.73 in FY 2024). Revenue: CN¥5.82b (down 9.8% from FY 2024). Net income: CN¥801.5m (down 44% from FY 2024). Profit margin: 14% (down from 22% in FY 2024). Revenue is forecast to grow 18% p.a. on average during the next 2 years, compared to a 17% growth forecast for the IT industry in China. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Annonce • Apr 28
Beijing Ultrapower Software Co., Ltd., Annual General Meeting, May 22, 2026 Beijing Ultrapower Software Co., Ltd., Annual General Meeting, May 22, 2026, at 14:30 China Standard Time. Location: 19F, Building 1,Yard Jia No. 13, Beiyuan Road, Chaoyang District, Beijing China Annonce • Mar 31
Beijing Ultrapower Software Co., Ltd. to Report Q1, 2026 Results on Apr 28, 2026 Beijing Ultrapower Software Co., Ltd. announced that they will report Q1, 2026 results on Apr 28, 2026 New Risk • Feb 28
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: 14% Last year net profit margin: 22% 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: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (14% net profit margin). Reported Earnings • Feb 28
Full year 2025 earnings released: EPS: CN¥0.41 (vs CN¥0.73 in FY 2024) Full year 2025 results: EPS: CN¥0.41 (down from CN¥0.73 in FY 2024). Revenue: CN¥5.82b (down 9.7% from FY 2024). Net income: CN¥798.2m (down 44% from FY 2024). Profit margin: 14% (down from 22% in FY 2024). Revenue is forecast to grow 18% p.a. on average during the next 2 years, compared to a 18% growth forecast for the IT industry in China. Over the last 3 years on average, earnings per share has increased by 20% per year and the company’s share price has also increased by 20% per year. Annonce • Dec 31
Beijing Ultrapower Software Co., Ltd. to Report Fiscal Year 2025 Results on Apr 28, 2026 Beijing Ultrapower Software Co., Ltd. announced that they will report fiscal year 2025 results on Apr 28, 2026 Price Target Changed • Nov 19
Price target decreased by 9.9% to CN¥16.64 Down from CN¥18.46, the current price target is an average from 2 analysts. New target price is 46% above last closing price of CN¥11.36. Stock is down 15% over the past year. The company is forecast to post earnings per share of CN¥0.56 for next year compared to CN¥0.73 last year. Reported Earnings • Oct 29
Third quarter 2025 earnings released: EPS: CN¥0.11 (vs CN¥0.24 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.11 (down from CN¥0.24 in 3Q 2024). Revenue: CN¥1.38b (down 5.3% from 3Q 2024). Net income: CN¥214.9m (down 54% from 3Q 2024). Profit margin: 16% (down from 32% in 3Q 2024). The decrease in margin was primarily driven by higher expenses. Revenue is forecast to grow 18% p.a. on average during the next 3 years, compared to a 17% growth forecast for the IT industry in China. Over the last 3 years on average, earnings per share has increased by 30% per year but the company’s share price has increased by 39% per year, which means it is tracking significantly ahead of earnings growth. Annonce • Sep 30
Beijing Ultrapower Software Co., Ltd. to Report Q3, 2025 Results on Oct 29, 2025 Beijing Ultrapower Software Co., Ltd. announced that they will report Q3, 2025 results on Oct 29, 2025 Buy Or Sell Opportunity • Sep 17
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 36% to CN¥14.94. The fair value is estimated to be CN¥12.33, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Earnings per share has grown by 38%. Revenue is forecast to grow by 45% in 2 years. Earnings are forecast to grow by 33% in the next 2 years. Reported Earnings • Aug 31
Second quarter 2025 earnings released: EPS: CN¥0.14 (vs CN¥0.17 in 2Q 2024) Second quarter 2025 results: EPS: CN¥0.14 (down from CN¥0.17 in 2Q 2024). Revenue: CN¥1.36b (down 13% from 2Q 2024). Net income: CN¥270.8m (down 19% from 2Q 2024). Profit margin: 20% (down from 22% in 2Q 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 16% growth forecast for the IT industry in China. Over the last 3 years on average, earnings per share has increased by 38% per year but the company’s share price has increased by 46% per year, which means it is tracking significantly ahead of earnings growth. Annonce • Jul 02
Beijing Ultrapower Software Co., Ltd. to Report First Half, 2025 Results on Aug 27, 2025 Beijing Ultrapower Software Co., Ltd. announced that they will report first half, 2025 results on Aug 27, 2025 Price Target Changed • Jun 18
Price target decreased by 14% to CN¥14.54 Down from CN¥16.96, the current price target is an average from 2 analysts. New target price is 30% above last closing price of CN¥11.16. Stock is up 30% over the past year. The company is forecast to post earnings per share of CN¥0.62 for next year compared to CN¥0.73 last year. Annonce • May 20
Beijing Ultrapower Software Co., Ltd., Annual General Meeting, Jun 10, 2025 Beijing Ultrapower Software Co., Ltd., Annual General Meeting, Jun 10, 2025, at 14:30 China Standard Time. Location: 19F, Building 1,Yard Jia No. 13, Beiyuan Road, Chaoyang District, Beijing China Board Change • May 13
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 6 experienced directors. 3 highly experienced directors. Independent Director Yuning Sun was the last director to join the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Reported Earnings • Apr 26
First quarter 2025 earnings released: EPS: CN¥0.12 (vs CN¥0.15 in 1Q 2024) First quarter 2025 results: EPS: CN¥0.12 (down from CN¥0.15 in 1Q 2024). Revenue: CN¥1.32b (down 11% from 1Q 2024). Net income: CN¥238.7m (down 19% from 1Q 2024). Profit margin: 18% (down from 20% in 1Q 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 21% p.a. on average during the next 2 years, compared to a 17% growth forecast for the IT industry in China. Over the last 3 years on average, earnings per share has increased by 43% per year whereas the company’s share price has increased by 45% per year. New Risk • Apr 07
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 0.6% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 22% After last week's 22% share price decline to CN¥10.32, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 45x in the IT industry in China. Total returns to shareholders of 145% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥17.49 per share. Annonce • Mar 31
Beijing Ultrapower Software Co., Ltd. to Report Q1, 2025 Results on Apr 26, 2025 Beijing Ultrapower Software Co., Ltd. announced that they will report Q1, 2025 results on Apr 26, 2025 Buy Or Sell Opportunity • Mar 13
Now 20% undervalued Over the last 90 days, the stock has risen 10% to CN¥14.02. The fair value is estimated to be CN¥17.56, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years. Earnings per share has grown by 45%. Revenue is forecast to grow by 43% in 2 years. Earnings are forecast to grow by 11% in the next 2 years. Valuation Update With 7 Day Price Move • Feb 28
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CN¥13.49, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 41x in the IT industry in China. Total returns to shareholders of 172% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥26.16 per share. Annonce • Dec 31
Beijing Ultrapower Software Co., Ltd. to Report Fiscal Year 2024 Results on Apr 26, 2025 Beijing Ultrapower Software Co., Ltd. announced that they will report fiscal year 2024 results on Apr 26, 2025 Valuation Update With 7 Day Price Move • Nov 11
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥14.52, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 33x in the IT industry in China. Total returns to shareholders of 145% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥28.77 per share. Major Estimate Revision • Nov 04
Consensus EPS estimates increase by 10% The consensus outlook for fiscal year 2024 has been updated. 2024 EPS estimate increased from CN¥0.568 to CN¥0.628. Revenue forecast unchanged at CN¥6.98b. Net income forecast to shrink 6.8% next year vs 63% growth forecast for IT industry in China . Consensus price target up from CN¥10.39 to CN¥16.49. Share price fell 10% to CN¥12.25 over the past week. Price Target Changed • Oct 30
Price target increased by 59% to CN¥16.49 Up from CN¥10.39, the current price target is an average from 2 analysts. New target price is 28% above last closing price of CN¥12.91. Stock is up 49% over the past year. The company is forecast to post earnings per share of CN¥0.58 for next year compared to CN¥0.46 last year. Reported Earnings • Oct 29
Third quarter 2024 earnings released: EPS: CN¥0.24 (vs CN¥0.083 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.24 (up from CN¥0.083 in 3Q 2023). Revenue: CN¥1.46b (up 4.5% from 3Q 2023). Net income: CN¥462.7m (up 191% from 3Q 2023). Profit margin: 32% (up from 11% in 3Q 2023). The increase in margin was primarily driven by lower expenses. Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 15% growth forecast for the IT industry in China. Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has only increased by 32% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 15
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to CN¥11.92, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 29x in the IT industry in China. Total returns to shareholders of 103% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥14.95 per share. Buy Or Sell Opportunity • Oct 11
Now 24% undervalued Over the last 90 days, the stock has risen 38% to CN¥11.34. The fair value is estimated to be CN¥14.97, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years. Earnings per share has grown by 39%. Revenue is forecast to grow by 34% in 2 years. Earnings are forecast to grow by 23% in the next 2 years. New Risk • Sep 30
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 7.0% 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. This is currently the only risk that has been identified for the company. Annonce • Sep 30
Beijing Ultrapower Software Co., Ltd. to Report Q3, 2024 Results on Oct 29, 2024 Beijing Ultrapower Software Co., Ltd. announced that they will report Q3, 2024 results on Oct 29, 2024 Valuation Update With 7 Day Price Move • Sep 27
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CN¥10.67, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 23x in the IT industry in China. Total returns to shareholders of 87% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥14.94 per share. Reported Earnings • Aug 27
Second quarter 2024 earnings released: EPS: CN¥0.17 (vs CN¥0.12 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.17 (up from CN¥0.12 in 2Q 2023). Revenue: CN¥1.56b (up 8.5% from 2Q 2023). Net income: CN¥336.0m (up 49% from 2Q 2023). Profit margin: 22% (up from 16% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 15% growth forecast for the IT industry in China. Over the last 3 years on average, earnings per share has increased by 39% per year but the company’s share price has only increased by 21% per year, which means it is significantly lagging earnings growth. Annonce • Jun 29
Beijing Ultrapower Software Co., Ltd. to Report First Half, 2024 Results on Aug 27, 2024 Beijing Ultrapower Software Co., Ltd. announced that they will report first half, 2024 results on Aug 27, 2024 Buy Or Sell Opportunity • Apr 23
Now 20% overvalued Over the last 90 days, the stock has fallen 11% to CN¥8.97. The fair value is estimated to be CN¥7.45, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last 3 years. Earnings per share has grown by 31%. For the next 3 years, revenue is forecast to grow by 14% per annum. Earnings are also forecast to grow by 13% per annum over the same time period. Reported Earnings • Apr 20
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: CN¥0.46 (up from CN¥0.28 in FY 2022). Revenue: CN¥5.96b (up 24% from FY 2022). Net income: CN¥887.2m (up 64% from FY 2022). Profit margin: 15% (up from 11% in FY 2022). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 4.5%. Revenue is forecast to grow 15% p.a. on average during the next 2 years, compared to a 19% growth forecast for the IT industry in China. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has only increased by 23% per year, which means it is significantly lagging earnings growth. Annonce • Apr 20
Beijing Ultrapower Software Co., Ltd., Annual General Meeting, May 24, 2024 Beijing Ultrapower Software Co., Ltd., Annual General Meeting, May 24, 2024, at 14:30 China Standard Time. Location: 19F, Building 1,Yard Jia No. 13, Beiyuan Road, Chaoyang District, Beijing China Annonce • Mar 30
Beijing Ultrapower Software Co., Ltd. to Report Q1, 2024 Results on Apr 25, 2024 Beijing Ultrapower Software Co., Ltd. announced that they will report Q1, 2024 results on Apr 25, 2024 Reported Earnings • Feb 22
Full year 2023 earnings released: EPS: CN¥0.46 (vs CN¥0.28 in FY 2022) Full year 2023 results: EPS: CN¥0.46 (up from CN¥0.28 in FY 2022). Revenue: CN¥5.96b (up 24% from FY 2022). Net income: CN¥893.2m (up 65% from FY 2022). Profit margin: 15% (up from 11% in FY 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 14% p.a. on average during the next 2 years, compared to a 19% growth forecast for the IT industry in China. Over the last 3 years on average, earnings per share has increased by 31% per year whereas the company’s share price has increased by 34% per year. Buy Or Sell Opportunity • Feb 06
Now 28% overvalued after recent price rise Over the last 90 days, the stock has risen 8.1% to CN¥10.31. The fair value is estimated to be CN¥8.04, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 37% in 2 years. Earnings are forecast to grow by 46% in the next 2 years. Valuation Update With 7 Day Price Move • Jan 24
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to CN¥10.10, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 22x in the IT industry in China. Total returns to shareholders of 127% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥7.97 per share. New Risk • Jan 19
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Chinese stocks, typically moving 7.8% a week. This is considered a major risk. Share price volatility 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. It may also indicate 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. This is currently the only risk that has been identified for the company. Buy Or Sell Opportunity • Jan 19
Now 23% overvalued after recent price rise Over the last 90 days, the stock has risen 10% to CN¥9.81. The fair value is estimated to be CN¥7.98, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 35% in 2 years. Earnings are forecast to grow by 40% in the next 2 years. Annonce • Dec 29
Beijing Ultrapower Software Co., Ltd. to Report Fiscal Year 2023 Results on Apr 19, 2024 Beijing Ultrapower Software Co., Ltd. announced that they will report fiscal year 2023 results on Apr 19, 2024 Reported Earnings • Oct 26
Third quarter 2023 earnings released: EPS: CN¥0.083 (vs CN¥0.082 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.083. Revenue: CN¥1.40b (up 2.6% from 3Q 2022). Net income: CN¥158.8m (flat on 3Q 2022). Profit margin: 11% (in line with 3Q 2022). Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 20% growth forecast for the IT industry in China. Buying Opportunity • Oct 13
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 14%. The fair value is estimated to be CN¥12.51, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 19% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 34% in 2 years. Earnings is forecast to grow by 45% in the next 2 years. New Risk • Sep 10
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 25% 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 (9.7% average weekly change). High level of non-cash earnings (25% accrual ratio). Buying Opportunity • Sep 08
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 32%. The fair value is estimated to be CN¥12.26, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 19% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 34% in 2 years. Earnings is forecast to grow by 45% in the next 2 years. Reported Earnings • Aug 29
Second quarter 2023 earnings released: EPS: CN¥0.12 (vs CN¥0.081 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.12 (up from CN¥0.081 in 2Q 2022). Revenue: CN¥1.44b (up 32% from 2Q 2022). Net income: CN¥225.9m (up 42% from 2Q 2022). Profit margin: 16% (up from 15% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 19% growth forecast for the IT industry in China. Over the last 3 years on average, earnings per share has increased by 80% per year but the company’s share price has only increased by 17% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jun 27
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CN¥13.17, the stock trades at a forward P/E ratio of 35x. Average forward P/E is 31x in the IT industry in China. Total returns to shareholders of 114% over the past three years. Annonce • Jun 21
Beijing Ultrapower Software Co., Ltd. Announces Final Distribution for the Year 2022, Payment Date Is 28 June 2023 Beijing Ultrapower Software Co., Ltd. announced 2022 final profit distribution plan to be implemented (A shares): The company announced Cash dividend/10 shares (tax included) of CNY 0.30000000. Record date is 27 June 2023. Ex-date is 28 June 2023. Payment date is 28 June 2023. Valuation Update With 7 Day Price Move • May 30
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥13.00, the stock trades at a forward P/E ratio of 35x. Average forward P/E is 30x in the IT industry in China. Total returns to shareholders of 100% over the past three years. Annonce • May 20
Beijing Ultrapower Software Co. Approves Final Cash for the Year 2022 Beijing Ultrapower Software Co., Ltd. at its AGM held on May 18, 2023 approved final cash dividend per 10 shares (tax included) of CNY 0.30000000 for the year 2022. Valuation Update With 7 Day Price Move • May 04
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥14.60, the stock trades at a forward P/E ratio of 40x. Average forward P/E is 29x in the IT industry in China. Total returns to shareholders of 170% over the past three years. Reported Earnings • Apr 28
First quarter 2023 earnings released: EPS: CN¥0.091 (vs CN¥0.032 in 1Q 2022) First quarter 2023 results: EPS: CN¥0.091 (up from CN¥0.032 in 1Q 2022). Revenue: CN¥1.21b (up 22% from 1Q 2022). Net income: CN¥178.1m (up 182% from 1Q 2022). Profit margin: 15% (up from 6.4% in 1Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 21% growth forecast for the IT industry in China. Over the last 3 years on average, earnings per share has increased by 96% per year but the company’s share price has only increased by 38% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Apr 20
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥13.15, the stock trades at a forward P/E ratio of 38x. Average forward P/E is 33x in the IT industry in China. Total returns to shareholders of 121% over the past three years. Valuation Update With 7 Day Price Move • Apr 04
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to CN¥10.65, the stock trades at a forward P/E ratio of 30x. Average forward P/E is 36x in the IT industry in China. Total returns to shareholders of 170% over the past three years. Valuation Update With 7 Day Price Move • Mar 21
Investor sentiment improves as stock rises 25% After last week's 25% share price gain to CN¥8.01, the stock trades at a trailing P/E ratio of 28.5x. Average trailing P/E is 55x in the IT industry in China. Total returns to shareholders of 93% over the past three years. Valuation Update With 7 Day Price Move • Mar 02
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥6.86, the stock trades at a trailing P/E ratio of 24.1x. Average trailing P/E is 56x in the IT industry in China. Total returns to shareholders of 64% over the past three years. Valuation Update With 7 Day Price Move • Feb 07
Investor sentiment improves as stock rises 26% After last week's 26% share price gain to CN¥6.21, the stock trades at a trailing P/E ratio of 21.8x. Average trailing P/E is 56x in the IT industry in China. Total returns to shareholders of 83% over the past three years. Board Change • Nov 23
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Director Yuning Sun was the last independent director to join the board, commencing their role in 2022. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 25
Third quarter 2022 earnings released: EPS: CN¥0.083 (vs CN¥0.03 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.083 (up from CN¥0.03 in 3Q 2021). Revenue: CN¥1.15b (up 16% from 3Q 2021). Net income: CN¥161.2m (up 176% from 3Q 2021). Profit margin: 14% (up from 5.9% in 3Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 95% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 29
Second quarter 2022 earnings released: EPS: CN¥0.081 (vs CN¥0.04 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.081 (up from CN¥0.04 in 2Q 2021). Revenue: CN¥1.09b (up 6.4% from 2Q 2021). Net income: CN¥159.1m (up 108% from 2Q 2021). Profit margin: 15% (up from 7.5% in 2Q 2021). The increase in margin was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 81% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Annonce • Jun 24
Beijing Ultrapower Software Co., Ltd Announces Implementation of Final Distribution Plan for A Shares for the Year 2021, Payable on June 30, 2022 Beijing Ultrapower Software Co., LTD implemented a final distribution plan for 2021 of CNY 0.25160900 per 10 A shares tax included. Payment date is June 30, 2022. Record date is June 29, 2022. Ex-date is June 30, 2022. Board Change • Jun 02
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 12 experienced directors. No highly experienced directors. Non-Independent Director Dawei Mao was the last director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Annonce • May 10
Beijing Ultrapower Software Co., Ltd. (SZSE:300002) announces an Equity Buyback for CNY 100 million worth of its shares. Beijing Ultrapower Software Co., Ltd. (SZSE:300002) announces a share repurchase program. Under the program, the company will repurchase not more than CNY 100 million worth of its shares. The shares will be repurchased at a price of not more than CNY 5 per share. The repurchased shares will be used for equity incentives or employee stock ownership plans. The plan will be valid for 12 months. Annonce • May 07
Beijing Ultrapower Software Co., Ltd., Annual General Meeting, May 27, 2022 Beijing Ultrapower Software Co., Ltd., Annual General Meeting, May 27, 2022, at 14:30 China Standard Time. Agenda: To approve 2021 work report of the board of directors; to approve 2021 work report of the supervisory committee; to approve 2021 annual report and its summary; to approve 2022 remuneration for directors; to approve 2022 remuneration for supervisors; to approve 2021 annual accounts; to approve 2021 profit distribution plan; to approve Appointment of 2022 audit firm; to approve Plan for 2022 entrusted wealth management; and to approve election and nomination of non-independent directors, independent directors and supervisors. Reported Earnings • Apr 28
First quarter 2022 earnings: EPS and revenues miss analyst expectations First quarter 2022 results: EPS: CN¥0.032 (down from CN¥0.04 in 1Q 2021). Revenue: CN¥990.5m (up 4.4% from 1Q 2021). Net income: CN¥63.1m (down 18% from 1Q 2021). Profit margin: 6.4% (down from 8.1% in 1Q 2021). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 17%. Earnings per share (EPS) also missed analyst estimates by 72%. Over the last 3 years on average, earnings per share has increased by 64% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Buying Opportunity • Apr 08
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 27%. The fair value is estimated to be CN¥5.70, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 34% over the last 3 years. Earnings per share has grown by 43%. Buying Opportunity • Mar 15
Now 24% undervalued after recent price drop Over the last 90 days, the stock is down 29%. The fair value is estimated to be CN¥5.79, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 34% per annum over the last 3 years. Earnings per share has grown by 43% per annum over the last 3 years. Reported Earnings • Feb 28
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: CN¥0.20 (up from CN¥0.18 in FY 2020). Revenue: CN¥4.32b (up 20% from FY 2020). Net income: CN¥382.9m (up 9.0% from FY 2020). Profit margin: 8.9% (in line with FY 2020). Revenue missed analyst estimates by 17%. Earnings per share (EPS) also missed analyst estimates by 72%. Over the last 3 years on average, earnings per share has increased by 43% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jan 27
Investor sentiment deteriorated over the past week After last week's 17% share price decline to CN¥5.22, the stock trades at a trailing P/E ratio of 28.7x. Average trailing P/E is 49x in the IT industry in China. Total returns to shareholders of 72% over the past three years. Reported Earnings • Oct 31
Third quarter 2021 earnings released: EPS CN¥0.03 (vs CN¥0.062 in 3Q 2020) The company reported a soft third quarter result with weaker earnings and profit margins, although revenues improved. Third quarter 2021 results: Revenue: CN¥994.5m (up 3.4% from 3Q 2020). Net income: CN¥58.4m (down 51% from 3Q 2020). Profit margin: 5.9% (down from 12% in 3Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 21% per year whereas the company’s share price has increased by 17% per year. Valuation Update With 7 Day Price Move • Sep 06
Investor sentiment improved over the past week After last week's 18% share price gain to CN¥5.92, the stock trades at a trailing P/E ratio of 27.7x. Average trailing P/E is 45x in the IT industry in China. Total returns to shareholders of 53% over the past three years. Reported Earnings • Aug 29
Second quarter 2021 earnings released: EPS CN¥0.04 (vs CN¥0.038 in 2Q 2020) The company reported a solid second quarter result with improved earnings and revenues, although profit margins were weaker. Second quarter 2021 results: Revenue: CN¥1.02b (up 38% from 2Q 2020). Net income: CN¥76.7m (up 5.4% from 2Q 2020). Profit margin: 7.5% (down from 9.8% in 2Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Aug 03
Investor sentiment improved over the past week After last week's 18% share price gain to CN¥5.58, the stock trades at a trailing P/E ratio of 26.1x. Average trailing P/E is 44x in the IT industry in China. Total returns to shareholders of 43% over the past three years. Reported Earnings • Apr 29
First quarter 2021 earnings released: EPS CN¥0.04 (vs CN¥0.007 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: CN¥948.3m (up 71% from 1Q 2020). Net income: CN¥77.1m (up 433% from 1Q 2020). Profit margin: 8.1% (up from 2.6% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 37% per year but the company’s share price has only fallen by 12% per year, which means it has not declined as severely as earnings. Reported Earnings • Mar 17
Full year 2020 earnings released: EPS CN¥0.18 (vs CN¥0.75 loss in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: CN¥3.58b (up 102% from FY 2019). Net income: CN¥351.5m (up CN¥1.83b from FY 2019). Profit margin: 9.8% (up from net loss in FY 2019). Over the last 3 years on average, earnings per share has fallen by 78% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Feb 04
New 90-day low: CN¥4.19 The company is down 26% from its price of CN¥5.64 on 06 November 2020. The Chinese market is up 5.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the IT industry, which is down 27% over the same period. Is New 90 Day High Low • Jan 11
New 90-day low: CN¥4.63 The company is down 23% from its price of CN¥6.04 on 13 October 2020. The Chinese market is up 5.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the IT industry, which is down 27% over the same period. Is New 90 Day High Low • Dec 24
New 90-day low: CN¥5.31 The company is down 7.0% from its price of CN¥5.72 on 24 September 2020. The Chinese market is up 2.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the IT industry, which is down 23% over the same period.