New Risk • May 04
New major risk - Revenue and earnings growth Earnings have declined by 64% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. This is currently the only risk that has been identified for the company. Reported Earnings • Apr 11
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: CN¥1.15 loss per share (down from CN¥0.025 profit in FY 2024). Revenue: CN¥7.74b (up 115% from FY 2024). Net loss: CN¥445.8m (down CN¥455.4m from profit in FY 2024). Revenue missed analyst estimates by 14%. Earnings per share (EPS) were also behind analyst expectations. Revenue is forecast to grow 12% 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, the company's share price growth rate has exceeded its earnings growth rate by 47 percentage points per year, which is a significant difference in performance. Announcement • Mar 30
Asiainfo Security Technologies Co.,Ltd. to Report Q1, 2026 Results on Apr 28, 2026 Asiainfo Security Technologies Co.,Ltd. announced that they will report Q1, 2026 results on Apr 28, 2026 New Risk • Mar 23
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 8.1% 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. Reported Earnings • Mar 05
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: CN¥1.14 loss per share (down from CN¥0.025 profit in FY 2024). Revenue: CN¥7.76b (up 116% from FY 2024). Net loss: CN¥442.0m (down CN¥451.5m from profit in FY 2024). Revenue missed analyst estimates by 14%. Earnings per share (EPS) were also behind analyst expectations. Revenue is forecast to grow 15% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Software industry in China. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 58 percentage points per year, which is a significant difference in performance. Announcement • Dec 26
Asiainfo Security Technologies Co.,Ltd. to Report Fiscal Year 2025 Results on Apr 28, 2026 Asiainfo Security Technologies Co.,Ltd. announced that they will report fiscal year 2025 results on Apr 28, 2026 Reported Earnings • Oct 29
Third quarter 2025 earnings released: CN¥0.11 loss per share (vs CN¥0.045 loss in 3Q 2024) Third quarter 2025 results: CN¥0.11 loss per share (further deteriorated from CN¥0.045 loss in 3Q 2024). Revenue: CN¥1.77b (up 295% from 3Q 2024). Net loss: CN¥43.8m (loss widened 170% from 3Q 2024). Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Software industry in China. Over the last 3 years on average, earnings per share has fallen by 50% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Announcement • Sep 30
Asiainfo Security Technologies Co.,Ltd. to Report Q3, 2025 Results on Oct 29, 2025 Asiainfo Security Technologies Co.,Ltd. announced that they will report Q3, 2025 results on Oct 29, 2025 Reported Earnings • Aug 24
Second quarter 2025 earnings released: CN¥0.34 loss per share (vs CN¥0.12 loss in 2Q 2024) Second quarter 2025 results: CN¥0.34 loss per share (further deteriorated from CN¥0.12 loss in 2Q 2024). Revenue: CN¥1.83b (up 392% from 2Q 2024). Net loss: CN¥128.8m (loss widened 179% from 2Q 2024). Revenue is forecast to grow 22% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Software industry in China. Over the last 3 years on average, earnings per share has fallen by 56% per year but the company’s share price has increased by 4% per year, which means it is well ahead of earnings. Announcement • Jun 30
Asiainfo Security Technologies Co.,Ltd. to Report First Half, 2025 Results on Aug 22, 2025 Asiainfo Security Technologies Co.,Ltd. announced that they will report first half, 2025 results on Aug 22, 2025 Announcement • May 30
Asiainfo Security Technologies Co.,Ltd., Annual General Meeting, Jun 23, 2025 Asiainfo Security Technologies Co.,Ltd., Annual General Meeting, Jun 23, 2025, at 14:00 China Standard Time. Board Change • May 10
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. 6 non-independent directors. Independent Director Chengqing Huang was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Apr 29
First quarter 2025 earnings released: CN¥0.57 loss per share (vs CN¥0.36 loss in 1Q 2024) First quarter 2025 results: CN¥0.57 loss per share (further deteriorated from CN¥0.36 loss in 1Q 2024). Revenue: CN¥1.29b (up 348% from 1Q 2024). Net loss: CN¥227.4m (loss widened 56% from 1Q 2024). Revenue is forecast to grow 39% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Software industry in China. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 72 percentage points per year, which is a significant difference in performance. Announcement • Mar 28
Asiainfo Security Technologies Co.,Ltd. to Report Q1, 2025 Results on Apr 29, 2025 Asiainfo Security Technologies Co.,Ltd. announced that they will report Q1, 2025 results on Apr 29, 2025 Reported Earnings • Mar 02
Full year 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2024 results: EPS: CN¥0.024 (up from CN¥0.73 loss in FY 2023). Revenue: CN¥3.74b (up 133% from FY 2023). Net income: CN¥9.41m (up CN¥300.5m from FY 2023). Profit margin: 0.3% (up from net loss in FY 2023). The move to profitability was driven by higher revenue. Revenue exceeded analyst estimates by 3.5%. Earnings per share (EPS) missed analyst estimates by 22%. Revenue is forecast to grow 43% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Software industry in China. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 81 percentage points per year, which is a significant difference in performance. Announcement • Dec 27
Asiainfo Security Technologies Co.,Ltd. to Report Fiscal Year 2024 Results on Apr 29, 2025 Asiainfo Security Technologies Co.,Ltd. announced that they will report fiscal year 2024 results on Apr 29, 2025 Reported Earnings • Nov 02
Third quarter 2024 earnings released: CN¥0.045 loss per share (vs CN¥0.10 loss in 3Q 2023) Third quarter 2024 results: CN¥0.045 loss per share (improved from CN¥0.10 loss in 3Q 2023). Revenue: CN¥447.7m (up 4.4% from 3Q 2023). Net loss: CN¥16.2m (loss narrowed 59% from 3Q 2023). Revenue is forecast to grow 21% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Software industry in China. New Risk • Sep 30
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 8.9% 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. Announcement • Sep 30
Asiainfo Security Technologies Co.,Ltd. to Report Q3, 2024 Results on Oct 31, 2024 Asiainfo Security Technologies Co.,Ltd. announced that they will report Q3, 2024 results on Oct 31, 2024 Reported Earnings • Aug 24
Second quarter 2024 earnings released: CN¥0.12 loss per share (vs CN¥0.19 loss in 2Q 2023) Second quarter 2024 results: CN¥0.12 loss per share (improved from CN¥0.19 loss in 2Q 2023). Revenue: CN¥372.4m (up 14% from 2Q 2023). Net loss: CN¥46.2m (loss narrowed 40% from 2Q 2023). Revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Software industry in China. New Risk • Jul 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 7.4% 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. This is currently the only risk that has been identified for the company. Announcement • Jun 28
Asiainfo Security Technologies Co.,Ltd. to Report First Half, 2024 Results on Aug 24, 2024 Asiainfo Security Technologies Co.,Ltd. announced that they will report first half, 2024 results on Aug 24, 2024 Announcement • May 01
Asiainfo Security Technologies Co.,Ltd., Annual General Meeting, May 21, 2024 Asiainfo Security Technologies Co.,Ltd., Annual General Meeting, May 21, 2024, at 14:00 China Standard Time. Reported Earnings • Apr 28
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: CN¥0.73 loss per share (down from CN¥0.25 profit in FY 2022). Revenue: CN¥1.61b (down 6.6% from FY 2022). Net loss: CN¥291.1m (down 395% from profit in FY 2022). Revenue missed analyst estimates by 15%. Earnings per share (EPS) were also behind analyst expectations. Revenue is forecast to grow 30% p.a. on average during the next 2 years, compared to a 22% growth forecast for the Software industry in China. Announcement • Mar 29
Asiainfo Security Technologies Co.,Ltd. to Report Q1, 2024 Results on Apr 27, 2024 Asiainfo Security Technologies Co.,Ltd. announced that they will report Q1, 2024 results on Apr 27, 2024 Reported Earnings • Feb 24
Full year 2023 earnings released: CN¥0.73 loss per share (vs CN¥0.25 profit in FY 2022) Full year 2023 results: CN¥0.73 loss per share (down from CN¥0.25 profit in FY 2022). Revenue: CN¥1.66b (down 3.7% from FY 2022). Net loss: CN¥288.2m (down 392% from profit in FY 2022). Revenue is forecast to grow 28% p.a. on average during the next 2 years, compared to a 22% growth forecast for the Software industry in China. New Risk • Jan 22
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 6.6% 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 (67% accrual ratio). Minor Risk Share price has been volatile over the past 3 months (6.6% average weekly change). Announcement • Jan 18
Asiainfo Security Technologies Co.,Ltd. (SHSE:688225) agreed to acquire 22.87% stake in AsiaInfo Technologies Limited (SEHK:1675) from Skipper Investment Limited for HKD2.02 billion. Asiainfo Security Technologies Co.,Ltd. (SHSE:688225) agreed to acquire 22.87% stake in AsiaInfo Technologies Limited (SEHK:1675) from Skipper Investment Limited for HKD2.02 billion on January 16, 2024. Board Change • Jan 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. 6 experienced directors. No highly experienced directors. Independent Director Chengqing Huang was the last director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Reported Earnings • Nov 02
Third quarter 2023 earnings released: CN¥0.10 loss per share (vs CN¥0.01 profit in 3Q 2022) Third quarter 2023 results: CN¥0.10 loss per share (down from CN¥0.01 profit in 3Q 2022). Revenue: CN¥428.6m (down 1.7% from 3Q 2022). Net loss: CN¥39.9m (down CN¥44.0m from profit in 3Q 2022). Revenue is forecast to grow 26% p.a. on average during the next 3 years, compared to a 24% growth forecast for the Software industry in China. Major Estimate Revision • Nov 01
Consensus EPS estimates fall by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from CN¥2.10b to CN¥2.04b. EPS estimate also fell from CN¥0.353 per share to CN¥0.313 per share. Net income forecast to grow 68% next year vs 91% growth forecast for Software industry in China. Consensus price target of CN¥27.74 unchanged from last update. Share price was steady at CN¥17.38 over the past week. Reported Earnings • Aug 31
Second quarter 2023 earnings released: CN¥0.19 loss per share (vs CN¥0.24 loss in 2Q 2022) Second quarter 2023 results: CN¥0.19 loss per share (improved from CN¥0.24 loss in 2Q 2022). Revenue: CN¥327.0m (up 6.1% from 2Q 2022). Net loss: CN¥76.5m (loss narrowed 17% from 2Q 2022). Revenue is forecast to grow 27% p.a. on average during the next 3 years, compared to a 23% growth forecast for the Software industry in China. Announcement • Jun 28
Asiainfo Security Technologies Co.,Ltd. to Report First Half, 2023 Results on Aug 29, 2023 Asiainfo Security Technologies Co.,Ltd. announced that they will report first half, 2023 results on Aug 29, 2023 Reported Earnings • Apr 29
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: EPS: CN¥0.25 (down from CN¥0.50 in FY 2021). Revenue: CN¥1.72b (up 3.2% from FY 2021). Net income: CN¥98.6m (down 45% from FY 2021). Profit margin: 5.7% (down from 11% in FY 2021). Revenue missed analyst estimates by 17%. Earnings per share (EPS) also missed analyst estimates by 29%. Revenue is forecast to grow 30% p.a. on average during the next 2 years, compared to a 22% growth forecast for the Software industry in China. Reported Earnings • Mar 02
Full year 2022 earnings released: EPS: CN¥0.24 (vs CN¥0.50 in FY 2021) Full year 2022 results: EPS: CN¥0.24 (down from CN¥0.50 in FY 2021). Revenue: CN¥1.72b (up 3.4% from FY 2021). Net income: CN¥93.1m (down 48% from FY 2021). Profit margin: 5.4% (down from 11% in FY 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 33% p.a. on average during the next 2 years, compared to a 24% growth forecast for the Software industry in China. Reported Earnings • Oct 30
Third quarter 2022 earnings released: EPS: CN¥0.01 (vs CN¥0.24 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.01 (down from CN¥0.24 in 3Q 2021). Revenue: CN¥435.8m (down 26% from 3Q 2021). Net income: CN¥4.13m (down 95% from 3Q 2021). Profit margin: 0.9% (down from 14% in 3Q 2021). Revenue is forecast to grow 29% p.a. on average during the next 3 years, compared to a 24% growth forecast for the Software industry in China. Buying Opportunity • Sep 23
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 20%. The fair value is estimated to be CN¥22.41, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 25% over the last year. Earnings per share has declined by 100%. Revenue is forecast to grow by 80% in 2 years. Earnings is forecast to grow by 753,552% in the next 2 years. Reported Earnings • Aug 28
Second quarter 2022 earnings released: CN¥0.24 loss per share (vs CN¥0.24 profit in 2Q 2021) Second quarter 2022 results: CN¥0.24 loss per share (down from CN¥0.24 profit in 2Q 2021). Revenue: CN¥308.2m (down 48% from 2Q 2021). Net loss: CN¥92.3m (down 208% from profit in 2Q 2021). Over the next year, revenue is forecast to grow 44%, compared to a 33% growth forecast for the Software industry in China. Reported Earnings • May 02
First quarter 2022 earnings released: CN¥0.20 loss per share (vs CN¥0.048 profit in 1Q 2021) First quarter 2022 results: CN¥0.20 loss per share (down from CN¥0.048 profit in 1Q 2021). Revenue: CN¥284.8m (down 33% from 1Q 2021). Net loss: CN¥78.3m (down 240% from profit in 1Q 2021). Over the next year, revenue is forecast to grow 43%, compared to a 33% growth forecast for the industry in China. Valuation Update With 7 Day Price Move • Mar 29
Investor sentiment deteriorated over the past week After last week's 15% share price decline to CN¥23.78, the stock trades at a trailing P/E ratio of 54x. Average trailing P/E is 45x in the Software industry in China.