Shanghai Weaver Network (SHSE:603039) - Share price, News & Analysis

603039 fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	3/6
Past Performance	3/6
Financial Health	6/6
Dividends	2/6

603039 Stock Overview

Shanghai Weaver Network Co., Ltd. provides collaborative management software products in China.

Rewards

PE ratio (31.5x) is below the Software industry average (47.8x)

Earnings are forecast to grow 22.4% per year

Earnings grew by 25.8% over the past year

Risk Analysis

No risks detected for 603039 from our risk checks.

Shanghai Weaver Network Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Shanghai Weaver Network
Historical stock prices
Current Share Price	CN¥35.95
52 Week High	CN¥81.79
52 Week Low	CN¥30.11
Beta	0.59
1 Month Change	-26.47%
3 Month Change	-45.74%
1 Year Change	-48.26%
3 Year Change	-7.65%
5 Year Change	109.55%
Change since IPO	516.46%

Shareholder Returns

	603039	CN Software	CN Market
7D	11.1%	-0.07%	1.1%
1Y	-48.3%	-32.2%	-15.4%

Return vs Industry: 603039 underperformed the CN Software industry which returned -32.2% over the past year.

Return vs Market: 603039 underperformed the CN Market which returned -15.4% over the past year.

Price Volatility

Is 603039's price volatile compared to industry and market?
603039 volatility
603039 Average Weekly Movement	6.9%
Software Industry Average Movement	7.2%
Market Average Movement	7.4%
10% most volatile stocks in CN Market	10.3%
10% least volatile stocks in CN Market	5.3%

Stable Share Price: 603039 is not significantly more volatile than the rest of CN stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 603039's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2001	1,659	Li Dong Wei	https://www.weaver.com.cn

Shanghai Weaver Network Co., Ltd. provides collaborative management software products in China. It offers e-cology, a platform for large and middle size enterprises; e-office, a collaboration platform for SMEs; eteams, a mobile cloud software; and e-mobile/mobile integration platform that enables mobile connectivity. The company serves manufacturing, real estate, software and Internet, financial, electronics, telecommunications, energy and chemical, automotive, media and entertainment, and catering chain industries, as well as textile, shoes, and apparel markets.

Shanghai Weaver Network Fundamentals Summary

How do Shanghai Weaver Network's earnings and revenue compare to its market cap?
603039 fundamental statistics
Market Cap	CN¥9.28b
Earnings (TTM)	CN¥297.77m
Revenue (TTM)	CN¥2.05b

31.5x

P/E Ratio

4.6x

P/S Ratio

Is 603039 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
603039 income statement (TTM)
Revenue	CN¥2.05b
Cost of Revenue	CN¥98.44m
Gross Profit	CN¥1.95b
Other Expenses	CN¥1.65b
Earnings	CN¥297.77m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.14
Gross Margin	95.19%
Net Profit Margin	14.55%
Debt/Equity Ratio	0%

How did 603039 perform over the long term?

See historical performance and comparison

Dividends

0.4%

Current Dividend Yield

13%

Payout Ratio

Valuation

Is Shanghai Weaver Network undervalued compared to its fair value and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

31.46x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: 603039 (CN¥35.95) is trading above our estimate of fair value (CN¥29.71)

Significantly Below Fair Value: 603039 is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: 603039 is good value based on its PE Ratio (31.5x) compared to the CN Software industry average (47.8x).

PE vs Market: 603039 is poor value based on its PE Ratio (31.5x) compared to the CN market (30.4x).

Price to Earnings Growth Ratio

PEG Ratio: 603039 is poor value based on its PEG Ratio (1.4x)

Price to Book Ratio

PB vs Industry: 603039 is overvalued based on its PB Ratio (4.9x) compared to the CN Software industry average (2.8x).

Future Growth

How is Shanghai Weaver Network forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

22.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 603039's forecast earnings growth (22.4% per year) is above the savings rate (3.3%).

Earnings vs Market: 603039's earnings (22.4% per year) are forecast to grow slower than the CN market (23.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 603039's revenue (17.8% per year) is forecast to grow faster than the CN market (17.3% per year).

High Growth Revenue: 603039's revenue (17.8% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 603039's Return on Equity is forecast to be low in 3 years time (18.1%).

Past Performance

How has Shanghai Weaver Network performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

31.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 603039 has high quality earnings.

Growing Profit Margin: 603039's current net profit margins (14.6%) are lower than last year (15.5%).

Past Earnings Growth Analysis

Earnings Trend: 603039's earnings have grown significantly by 31.8% per year over the past 5 years.

Accelerating Growth: 603039's earnings growth over the past year (25.8%) is below its 5-year average (31.8% per year).

Earnings vs Industry: 603039 earnings growth over the past year (25.8%) exceeded the Software industry -12.9%.

Return on Equity

High ROE: 603039's Return on Equity (15.7%) is considered low.

Financial Health

How is Shanghai Weaver Network's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 603039's short term assets (CN¥2.7B) exceed its short term liabilities (CN¥1.4B).

Long Term Liabilities: 603039's short term assets (CN¥2.7B) exceed its long term liabilities (CN¥8.2M).

Debt to Equity History and Analysis

Debt Level: 603039 is debt free.

Reducing Debt: 603039 had no debt 5 years ago.

Debt Coverage: 603039 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 603039 has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is Shanghai Weaver Network current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.42%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 603039's dividend (0.42%) isn’t notable compared to the bottom 25% of dividend payers in the CN market (0.55%).

High Dividend: 603039's dividend (0.42%) is low compared to the top 25% of dividend payers in the CN market (2.12%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 603039 has been paying a dividend for less than 10 years.

Growing Dividend: 603039's dividend payments have increased, but the company has only paid a dividend for 5 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (12.9%), 603039's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (17.6%), 603039's dividend payments are well covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Software industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

CN¥540k

CEO Compensation

CEO

Li Dong Wei (45 yo)

no data

Tenure

CN¥540,000

Compensation

Mr. Li Dong Wei serves as Chairman of the Board and General Manager at Shanghai Weaver Network Co., Ltd. Mr. Wei holds Bachelor degree in Industrial Foreign Trade from Zhejiang University.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/18 00:00
End of Day Share Price	2022/05/18 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31