New Risk • Jul 06
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 0.4% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. 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. Announcement • Jun 30
Jiangsu Hoperun Software Co., Ltd. to Report First Half, 2026 Results on Aug 25, 2026 Jiangsu Hoperun Software Co., Ltd. announced that they will report first half, 2026 results on Aug 25, 2026 New Risk • Apr 23
New major risk - Revenue and earnings growth Earnings have declined by 5.9% 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. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 5.9% per year over the past 5 years. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (2.4% net profit margin). Reported Earnings • Apr 22
Full year 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2025 results: EPS: CN¥0.12 (down from CN¥0.20 in FY 2024). Revenue: CN¥3.98b (up 17% from FY 2024). Net income: CN¥97.0m (down 40% from FY 2024). Profit margin: 2.4% (down from 4.7% in FY 2024). Revenue exceeded analyst estimates by 4.6%. Earnings per share (EPS) missed analyst estimates by 50%. 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, earnings per share has increased by 8% per year but the company’s share price has increased by 24% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Apr 22
Jiangsu Hoperun Software Co., Ltd., Annual General Meeting, May 13, 2026 Jiangsu Hoperun Software Co., Ltd., Annual General Meeting, May 13, 2026, at 15:00 China Standard Time. Location: West 2F, Building 2, No. 168, Ruanjian Avenue, Yuhuatai District, Nanjing, Jiangsu China Announcement • Mar 31
Jiangsu Hoperun Software Co., Ltd. to Report Q1, 2026 Results on Apr 24, 2026 Jiangsu Hoperun Software Co., Ltd. announced that they will report Q1, 2026 results on Apr 24, 2026 New Risk • Mar 20
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 38% 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 (3.5% net profit margin). Announcement • Dec 31
Jiangsu Hoperun Software Co., Ltd. to Report Fiscal Year 2025 Results on Apr 22, 2026 Jiangsu Hoperun Software Co., Ltd. announced that they will report fiscal year 2025 results on Apr 22, 2026 Announcement • Oct 30
Jiangsu Hoperun Software Co., Ltd. Proposes Cash Dividend for the Third Quarter of 2025 Jiangsu Hoperun Software Co., Ltd. at its 3rd Extraordinary General Meeting of 2025 to be held on 14 November 2025, proposed cash dividend (tax included) of CNY 0.70000000 per 10 shares for the third quarter of 2025. Reported Earnings • Oct 29
Third quarter 2025 earnings released: EPS: CN¥0.022 (vs CN¥0.031 in 3Q 2024) Third quarter 2025 results: EPS: CN¥0.022 (down from CN¥0.031 in 3Q 2024). Revenue: CN¥971.7m (up 17% from 3Q 2024). Net income: CN¥18.8m (down 28% from 3Q 2024). Profit margin: 1.9% (down from 3.1% in 3Q 2024). The decrease in margin was driven by higher expenses. 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 increased by 7% per year but the company’s share price has increased by 45% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Oct 14
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 7.3% 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 (7.3% average weekly change). Large one-off items impacting financial results. Announcement • Sep 30
Jiangsu Hoperun Software Co., Ltd. to Report Q3, 2025 Results on Oct 29, 2025 Jiangsu Hoperun Software Co., Ltd. announced that they will report Q3, 2025 results on Oct 29, 2025 Reported Earnings • Aug 22
Second quarter 2025 earnings released: EPS: CN¥0.04 (vs CN¥0.086 in 2Q 2024) Second quarter 2025 results: EPS: CN¥0.04 (down from CN¥0.086 in 2Q 2024). Revenue: CN¥914.4m (up 13% from 2Q 2024). Net income: CN¥28.6m (down 52% from 2Q 2024). Profit margin: 3.1% (down from 7.3% in 2Q 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 increased by 4% per year but the company’s share price has increased by 53% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Jul 02
Jiangsu Hoperun Software Co., Ltd. to Report First Half, 2025 Results on Aug 22, 2025 Jiangsu Hoperun Software Co., Ltd. announced that they will report first half, 2025 results on Aug 22, 2025 Reported Earnings • Apr 23
Full year 2024 earnings released: EPS: CN¥0.20 (vs CN¥0.21 in FY 2023) Full year 2024 results: EPS: CN¥0.20 (down from CN¥0.21 in FY 2023). Revenue: CN¥3.40b (up 9.4% from FY 2023). Net income: CN¥161.1m (down 1.6% from FY 2023). Profit margin: 4.7% (down from 5.3% in FY 2023). Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has increased by 54% per year, which means it is well ahead of earnings. Announcement • Apr 22
Jiangsu Hoperun Software Co., Ltd., Annual General Meeting, May 13, 2025 Jiangsu Hoperun Software Co., Ltd., Annual General Meeting, May 13, 2025, at 15:00 China Standard Time. Location: West 2F, Building 2, No. 168, Ruanjian Avenue, Yuhuatai District, Nanjing, Jiangsu China Announcement • Mar 31
Jiangsu Hoperun Software Co., Ltd. to Report Q1, 2025 Results on Apr 25, 2025 Jiangsu Hoperun Software Co., Ltd. announced that they will report Q1, 2025 results on Apr 25, 2025 Announcement • Dec 31
Jiangsu Hoperun Software Co., Ltd. to Report Fiscal Year 2024 Results on Apr 22, 2025 Jiangsu Hoperun Software Co., Ltd. announced that they will report fiscal year 2024 results on Apr 22, 2025 Reported Earnings • Oct 25
Third quarter 2024 earnings released: EPS: CN¥0.031 (vs CN¥0.021 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.031 (up from CN¥0.021 in 3Q 2023). Revenue: CN¥828.6m (up 14% from 3Q 2023). Net income: CN¥25.9m (up 40% from 3Q 2023). Profit margin: 3.1% (up from 2.5% in 3Q 2023). Revenue is forecast to grow 19% 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 7% per year but the company’s share price has increased by 33% per year, which means it is well ahead of earnings. Buy Or Sell Opportunity • Oct 18
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 213% to CN¥62.95. The fair value is estimated to be CN¥52.41, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 5.4% over the last 3 years. Earnings per share has declined by 12%. Revenue is forecast to grow by 56% in 2 years. Earnings are forecast to grow by 146% in the next 2 years. Announcement • Sep 30
Jiangsu Hoperun Software Co., Ltd. to Report Q3, 2024 Results on Oct 25, 2024 Jiangsu Hoperun Software Co., Ltd. announced that they will report Q3, 2024 results on Oct 25, 2024 New Risk • Sep 28
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). Large one-off items impacting financial results. Price Target Changed • Sep 10
Price target decreased by 17% to CN¥23.69 Down from CN¥28.50, the current price target is provided by 1 analyst. New target price is 15% above last closing price of CN¥20.58. Stock is down 15% over the past year. The company is forecast to post earnings per share of CN¥0.31 for next year compared to CN¥0.21 last year. Reported Earnings • Aug 27
Second quarter 2024 earnings released: EPS: CN¥0.086 (vs CN¥0.05 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.086 (up from CN¥0.05 in 2Q 2023). Revenue: CN¥810.1m (up 16% from 2Q 2023). Net income: CN¥59.1m (up 36% from 2Q 2023). Profit margin: 7.3% (up from 6.2% in 2Q 2023). 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 12% per year whereas the company’s share price has fallen by 11% per year. Buy Or Sell Opportunity • Jul 22
Now 23% overvalued Over the last 90 days, the stock has fallen 3.6% to CN¥20.80. The fair value is estimated to be CN¥16.93, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 5.3% over the last 3 years. Earnings per share has declined by 17%. Revenue is forecast to grow by 66% in 2 years. Earnings are forecast to grow by 189% in the next 2 years. Board Change • Jul 06
Less than half of directors are independent There are 6 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 6 new directors. 2 experienced directors. 1 highly experienced director. 3 independent directors (4 non-independent directors). Chairman & CEO Hongwei Zhou is the most experienced director on the board, commencing their role in 2006. Independent Director Wanfu Li was the last independent 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: Minority of independent directors. Lack of board continuity. Lack of experienced directors. Buy Or Sell Opportunity • Jul 05
Now 20% overvalued Over the last 90 days, the stock has fallen 7.5% to CN¥20.40. The fair value is estimated to be CN¥16.98, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 5.3% over the last 3 years. Earnings per share has declined by 17%. Revenue is forecast to grow by 66% in 2 years. Earnings are forecast to grow by 189% in the next 2 years. Announcement • Jun 29
Jiangsu Hoperun Software Co., Ltd. to Report First Half, 2024 Results on Aug 27, 2024 Jiangsu Hoperun Software Co., Ltd. announced that they will report first half, 2024 results on Aug 27, 2024 Major Estimate Revision • May 03
Consensus EPS estimates fall by 14% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from CN¥4.27b to CN¥3.87b. EPS estimate also fell from CN¥0.442 per share to CN¥0.38 per share. Net income forecast to grow 124% next year vs 56% growth forecast for Software industry in China. Consensus price target down from CN¥27.75 to CN¥25.90. Share price was steady at CN¥22.69 over the past week. Announcement • Apr 26
Jiangsu Hoperun Software Co., Ltd., Annual General Meeting, May 16, 2024 Jiangsu Hoperun Software Co., Ltd., Annual General Meeting, May 16, 2024, at 15:00 China Standard Time. Location: West 2F, Building 2, No. 168, Ruanjian Avenue, Yuhuatai District, Nanjing, Jiangsu China Reported Earnings • Apr 25
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: CN¥0.21 (up from CN¥0.13 in FY 2022). Revenue: CN¥3.11b (up 4.4% from FY 2022). Net income: CN¥163.8m (up 55% from FY 2022). Profit margin: 5.3% (up from 3.5% in FY 2022). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 6.1%. Earnings per share (EPS) also missed analyst estimates by 4.5%. Revenue is forecast to grow 30% p.a. on average during the next 2 years, compared to a 21% growth forecast for the Software industry in China. Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has increased by 32% per year, which means it is well ahead of earnings. Announcement • Mar 30
Jiangsu Hoperun Software Co., Ltd. to Report Q1, 2024 Results on Apr 25, 2024 Jiangsu Hoperun Software Co., Ltd. announced that they will report Q1, 2024 results on Apr 25, 2024 Announcement • Dec 30
Jiangsu Hoperun Software Co., Ltd. to Report Fiscal Year 2023 Results on Apr 25, 2024 Jiangsu Hoperun Software Co., Ltd. announced that they will report fiscal year 2023 results on Apr 25, 2024 Major Estimate Revision • Dec 02
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¥3.43b to CN¥3.20b. EPS estimate also fell from CN¥0.203 per share to CN¥0.18 per share. Net income forecast to grow 251% next year vs 112% growth forecast for Software industry in China. Consensus price target down from CN¥26.15 to CN¥23.30. Share price rose 6.3% to CN¥28.23 over the past week. Major Estimate Revision • Oct 30
Consensus EPS estimates fall by 47% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from CN¥3.81b to CN¥3.43b. EPS estimate also fell from CN¥0.38 per share to CN¥0.203 per share. Net income forecast to grow 311% next year vs 92% growth forecast for Software industry in China. Consensus price target down from CN¥29.63 to CN¥26.15. Share price rose 7.9% to CN¥26.23 over the past week. Board Change • Oct 26
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, 2 were independent directors. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Director Wanfu Li was the last independent 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: Minority of independent directors. Lack of board continuity. Price Target Changed • Oct 24
Price target decreased by 10% to CN¥26.15 Down from CN¥29.12, the current price target is provided by 1 analyst. New target price is 13% above last closing price of CN¥23.14. Stock is up 30% over the past year. The company is forecast to post earnings per share of CN¥0.38 for next year compared to CN¥0.13 last year. Reported Earnings • Oct 24
Third quarter 2023 earnings released: EPS: CN¥0.021 (vs CN¥0.041 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.021 (down from CN¥0.041 in 3Q 2022). Revenue: CN¥726.5m (flat on 3Q 2022). Net income: CN¥18.5m (down 46% from 3Q 2022). Profit margin: 2.5% (down from 4.7% in 3Q 2022). Revenue is forecast to grow 42% p.a. on average during the next 3 years, compared to a 24% growth forecast for the Software industry in China. Over the last 3 years on average, earnings per share has increased by 84% per year but the company’s share price has only increased by 24% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Oct 19
Now 21% undervalued Over the last 90 days, the stock is up 18%. The fair value is estimated to be CN¥33.36, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 10% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 128% in 2 years. Earnings is forecast to grow by 650% in the next 2 years. New Risk • Oct 10
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. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (8.9% average weekly change). Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (3.4% net profit margin). Announcement • Sep 30
Jiangsu Hoperun Software Co., Ltd. to Report Q3, 2023 Results on Oct 24, 2023 Jiangsu Hoperun Software Co., Ltd. announced that they will report Q3, 2023 results on Oct 24, 2023 New Risk • Aug 17
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 22% 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 (3.4% net profit margin). Reported Earnings • Aug 16
Second quarter 2023 earnings released: EPS: CN¥0.05 (vs CN¥0.07 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.05 (down from CN¥0.07 in 2Q 2022). Revenue: CN¥698.2m (down 11% from 2Q 2022). Net income: CN¥43.4m (down 22% from 2Q 2022). Profit margin: 6.2% (down from 7.1% in 2Q 2022). Revenue is forecast to grow 39% p.a. on average during the next 3 years, compared to a 23% growth forecast for the Software industry in China. Over the last 3 years on average, earnings per share has increased by 111% per year but the company’s share price has only increased by 21% per year, which means it is significantly lagging earnings growth. Announcement • Jul 01
Jiangsu Hoperun Software Co., Ltd. to Report First Half, 2023 Results on Aug 16, 2023 Jiangsu Hoperun Software Co., Ltd. announced that they will report first half, 2023 results on Aug 16, 2023 Major Estimate Revision • Jun 16
Consensus revenue estimates decrease by 10% The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from CN¥4.24b to CN¥3.81b. EPS estimate unchanged at CN¥0.38 per share. Net income forecast to grow 232% next year vs 75% growth forecast for Software industry in China. Consensus price target broadly unchanged at CN¥29.63. Share price was steady at CN¥25.31 over the past week. Reported Earnings • Apr 23
First quarter 2023 earnings released: EPS: CN¥0.05 (vs CN¥0.04 in 1Q 2022) First quarter 2023 results: EPS: CN¥0.05 (up from CN¥0.04 in 1Q 2022). Revenue: CN¥737.1m (up 5.1% from 1Q 2022). Net income: CN¥36.3m (up 15% from 1Q 2022). Profit margin: 4.9% (up from 4.5% in 1Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 45% p.a. on average during the next 2 years, compared to a 23% growth forecast for the Software industry in China. Over the last 3 years on average, earnings per share has increased by 117% per year but the company’s share price has only increased by 38% per year, which means it is significantly lagging earnings growth. Board Change • Apr 01
High number of new directors There are 6 new directors who have joined the board in the last 3 years. Non-Independent Director Yang Hai was the last director to join the board, commencing their role in 2023. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Price Target Changed • Feb 07
Price target increased by 37% to CN¥29.12 Up from CN¥21.20, the current price target is provided by 1 analyst. New target price is 8.5% above last closing price of CN¥26.85. Stock is up 38% over the past year. The company is forecast to post earnings per share of CN¥0.23 for next year compared to CN¥0.23 last year. Announcement • Jan 13
Nanjing Hehu Zhilian Digital Technology Partnership (Limited Partnership) agreed to acquire 20% stake in Jiangsu Runkaihong Digital Technology Co., Ltd. from Jiangsu Hoperun Software Co., Ltd. (SZSE:300339) for CNY 0 Nanjing Hehu Zhilian Digital Technology Partnership (Limited Partnership) agreed to acquire 20% stake in Jiangsu Runkaihong Digital Technology Co., Ltd. from Jiangsu Hoperun Software Co., Ltd. (SZSE:300339) for CNY 0 on January 11, 2023. The board of directors of Jiangsu Hoperun Software approved the transaction. Major Estimate Revision • Jan 04
Consensus EPS estimates fall by 11% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from CN¥3.26b to CN¥3.17b. EPS estimate also fell from CN¥0.26 per share to CN¥0.23 per share. Net income forecast to grow 32% next year vs 72% growth forecast for Software industry in China. Consensus price target down from CN¥22.70 to CN¥21.20. Share price rose 3.8% to CN¥19.71 over the past week. Buying Opportunity • Dec 20
Now 20% undervalued Over the last 90 days, the stock is up 1.0%. The fair value is estimated to be CN¥22.40, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 13% over the last 3 years. Earnings per share has grown by 86%. Revenue is forecast to grow by 96% in 2 years. Earnings is forecast to grow by 192% in the next 2 years. Buying Opportunity • Nov 22
Now 20% undervalued Over the last 90 days, the stock is up 3.8%. The fair value is estimated to be CN¥24.79, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 13% over the last 3 years. Earnings per share has grown by 86%. Revenue is forecast to grow by 96% in 2 years. Earnings is forecast to grow by 192% in the next 2 years. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 3 non-independent directors. Independent Director Weidong Li 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. Buying Opportunity • Nov 07
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 5.8%. The fair value is estimated to be CN¥24.74, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 13% over the last 3 years. Earnings per share has grown by 86%. Revenue is forecast to grow by 96% in 2 years. Earnings is forecast to grow by 192% in the next 2 years. Reported Earnings • Oct 25
Third quarter 2022 earnings released: EPS: CN¥0.041 (vs CN¥0.06 in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.041 (down from CN¥0.06 in 3Q 2021). Revenue: CN¥731.0m (up 7.0% from 3Q 2021). Net income: CN¥34.2m (down 25% from 3Q 2021). Profit margin: 4.7% (down from 6.7% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 35% p.a. on average during the next 3 years, compared to a 24% growth forecast for the Software industry in China. Over the last 3 years on average, earnings per share has increased by 86% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Oct 17
Investor sentiment improved over the past week After last week's 17% share price gain to CN¥18.39, the stock trades at a forward P/E ratio of 53x. Average forward P/E is 28x in the Software industry in China. Total returns to shareholders of 35% over the past three years. Reported Earnings • Aug 20
Second quarter 2022 earnings released: EPS: CN¥0.07 (vs CN¥0.067 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.07 (up from CN¥0.067 in 2Q 2021). Revenue: CN¥782.2m (up 28% from 2Q 2021). Net income: CN¥55.5m (up 36% from 2Q 2021). Profit margin: 7.1% (up from 6.6% in 2Q 2021). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 29%, compared to a 31% growth forecast for the Software industry in China. Over the last 3 years on average, earnings per share has increased by 57% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Board Change • Aug 19
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 3 non-independent directors. Independent Director Weidong Li 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. Buying Opportunity • Jun 09
Now 24% undervalued after recent price drop Over the last 90 days, the stock is down 21%. The fair value is estimated to be CN¥22.11, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has grown by 30%. Revenue is forecast to grow by 78% in a year. Earnings is forecast to grow by 121% in the next year. Price Target Changed • Apr 27
Price target increased to CN¥21.40 Up from CN¥19.20, the current price target is provided by 1 analyst. New target price is 58% above last closing price of CN¥13.55. Stock is up 43% over the past year. The company is forecast to post earnings per share of CN¥0.43 for next year compared to CN¥0.23 last year. Board Change • Apr 27
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 11 experienced directors. No highly experienced directors. 4 independent directors (5 non-independent directors). Non-Independent Director Chen Bin was the last independent director to join the board, commencing their role in 2017. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Announcement • Apr 13
Jiangsu Hoperun Software Co., Ltd., Annual General Meeting, May 05, 2022 Jiangsu Hoperun Software Co., Ltd., Annual General Meeting, May 05, 2022, at 15:00 China Standard Time. Agenda: To consider and discuss about 2021 work report of the board of directors, 2021 work report of the supervisory committee, 2021 annual report and its summary, 2021 annual accounts, 2021 profit distribution plan, reappointment of 2022 audit firm, 2022 remuneration (allowance) for directors, 2022 remuneration (allowance) for supervisors, 2022 application for comprehensive credit line to banks by the Company and subsidiaries, provision of guarantee for the bank comprehensive credit line applied for by subsidiaries, change of the Company's business scope and amendments to the Company's articles of association and thereof. Reported Earnings • Apr 12
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: CN¥0.23 (up from CN¥0.21 in FY 2020). Revenue: CN¥2.76b (up 11% from FY 2020). Net income: CN¥176.2m (up 5.5% from FY 2020). Profit margin: 6.4% (down from 6.7% in FY 2020). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 19%. Earnings per share (EPS) also missed analyst estimates by 13%. Over the next year, revenue is forecast to grow 65%, compared to a 30% growth forecast for the industry in China. Over the last 3 years on average, earnings per share has increased by 4% per year whereas the company’s share price has increased by 8% per year. Reported Earnings • Oct 28
Third quarter 2021 earnings released: EPS CN¥0.06 (vs CN¥0.06 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¥683.1m (up 14% from 3Q 2020). Net income: CN¥45.7m (down 4.8% from 3Q 2020). Profit margin: 6.7% (down from 8.0% in 3Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has increased by 37% per year, which means it is well ahead of earnings. Announcement • Sep 02
Jiangsu Hoperun Software Co., Ltd. (SZSE:300339) agreed to acquire Jiangsu Hoperun Nanjing Software Outsourcing Park Real Estate Co., Ltd., Jiangsu Runlian Information Technology Co., Ltd. and Nanjing Quanchuang Information Technology Co., Ltd. from Jiangsu Runhe Science and Technology Investment Co., Ltd. and Nanjing Runhong Real Estate Co., Ltd. for approximately CNY 520 million. Jiangsu Hoperun Software Co., Ltd. (SZSE:300339) agreed to acquire Jiangsu Hoperun Nanjing Software Outsourcing Park Real Estate Co., Ltd., Jiangsu Runlian Information Technology Co., Ltd. and Nanjing Quanchuang Information Technology Co., Ltd. from Jiangsu Runhe Science and Technology Investment Co., Ltd. and Nanjing Runhong Real Estate Co., Ltd. for approximately CNY 520 million on August 31, 2021. Jiangsu Hoperun Software Co., Ltd. shall pay 40% of consideration within 30 working days of signing of agreement while remaining 60% payable within 30 working days after completion. As per the transaction, Jiangsu Hoperun Software Co., Ltd. will acquire Jiangsu Runlian Information Technology Co., Ltd. from Jiangsu Runhe Science and Technology Investment Co., Ltd. for CNY 162 million while Jiangsu Hoperun Nanjing Software Outsourcing Park Real Estate Co., Ltd. and Nanjing Quanchuang Information Technology Co., Ltd. Nanjing Runhong Real Estate Co., Ltd. for CNY 272 million and CNY 83.5 million respectively.
As of May 31, 2021, Jiangsu Hoperun Nanjing Software Outsourcing Park Real Estate Co., Ltd., Jiangsu Runlian Information Technology Co., Ltd. and Nanjing Quanchuang Information Technology Co., Ltd. has reported total assets of CNY 168.9 million, CNY 157.9 million and CNY 99.16 million while net assets are CNY 159.44 million, CNY 83.28 million and CNY 55.75 million. The Board of Directors of Jiangsu Hoperun Software Co., Ltd. has approved the transaction. Reported Earnings • Aug 20
Second quarter 2021 earnings released: EPS CN¥0.067 (vs CN¥0.12 in 2Q 2020) The company reported a soft second quarter result with weaker earnings and profit margins, although revenues improved. Second quarter 2021 results: Revenue: CN¥613.0m (up 5.0% from 2Q 2020). Net income: CN¥40.8m (down 32% from 2Q 2020). Profit margin: 6.6% (down from 10% 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 45% per year but the company’s share price has increased by 36% per year, which means it is well ahead of earnings. Announcement • Jun 16
Jiangsu Hoperun Software Co., Ltd.(SZSE:300339) dropped from Shenzhen Stock Exchange Component Index 98639545 Valuation Update With 7 Day Price Move • May 27
Investor sentiment improved over the past week After last week's 37% share price gain to CN¥16.53, the stock trades at a trailing P/E ratio of 68.6x. Average trailing P/E is 48x in the Software industry in China. Total returns to shareholders of 31% over the past three years. Valuation Update With 7 Day Price Move • May 12
Investor sentiment improved over the past week After last week's 20% share price gain to CN¥11.46, the stock trades at a trailing P/E ratio of 47.5x. Average trailing P/E is 43x in the Software industry in China. Total loss to shareholders of 8.6% over the past three years. Reported Earnings • Apr 21
Full year 2020 earnings released: EPS CN¥0.21 (vs CN¥2.30 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¥2.48b (up 17% from FY 2019). Net income: CN¥167.1m (up CN¥1.96b from FY 2019). Profit margin: 6.7% (up from net loss in FY 2019). The move to profitability was primarily driven by lower expenses. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 82 percentage points per year, which is a significant difference in performance. Is New 90 Day High Low • Jan 29
New 90-day low: CN¥8.81 The company is down 23% from its price of CN¥11.42 on 30 October 2020. The Chinese market is up 9.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Software industry, which is up 2.0% over the same period. Is New 90 Day High Low • Jan 07
New 90-day low: CN¥9.13 The company is down 31% from its price of CN¥13.14 on 09 October 2020. The Chinese market is up 11% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Software industry, which is up 1.0% over the same period. Is New 90 Day High Low • Dec 10
New 90-day low: CN¥10.11 The company is down 30% from its price of CN¥14.50 on 11 September 2020. The Chinese market is up 5.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Software industry, which is flat over the same period. Is New 90 Day High Low • Nov 16
New 90-day low: CN¥10.91 The company is down 12% from its price of CN¥12.39 on 18 August 2020. The Chinese market is down 3.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Software industry, which is down 11% over the same period. Is New 90 Day High Low • Oct 30
New 90-day low: CN¥11.42 The company is down 8.0% from its price of CN¥12.37 on 31 July 2020. The Chinese market is down 2.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Software industry, which is down 12% over the same period. Reported Earnings • Oct 30
Third quarter earnings released Over the last 12 months the company has reported total losses of CN¥1.83b, with earnings decreasing by CN¥2.11b from the prior year. Total revenue was CN¥2.21b over the last 12 months, down 3.0% from the prior year. Announcement • Sep 26
Sun Bing signed the equity transfer agreement to acquire 3.8194% stake in Suzhou Bona Xundong Software Co., Ltd. from Jiangsu Hoperun Software Co., Ltd. (SZSE:300339) for approximately CNY 26 million. Sun Bing signed the equity transfer agreement to acquire 3.8194% stake in Suzhou Bona Xundong Software Co., Ltd. from Jiangsu Hoperun Software Co., Ltd. (SZSE:300339) for approximately CNY 26 million on September 17, 2020. Post completion, Jiangsu Hoperun Software Co., Ltd. will not hold any stake in Suzhou Bona Xundong Software Co., Ltd. The transaction was reviewed and approved at the eighth meeting of the sixth directorate of Jiangsu Hoperun Software Co., Ltd. held on September 17, 2020 and does not need to be submitted to the shareholders meeting for review. Announcement • Aug 15
Service Trade Innovative Development Guidance Fund (LP), fund of China Merchants Capital Management Co., Ltd. cancelled the acquisition of 5.1% stake in Jiangsu Hoperun Software Co., Ltd. (SZSE:300339) from Jiangsu Runhe Technology Investment Group Co., Ltd., Ningbo Hongchuang Equity Investment Partnership Enterprise (Limited Partnership), Zhou Hongwei and Yao Ning. Service Trade Innovative Development Guidance Fund (LP), fund of China Merchants Capital Management Co., Ltd. agreed to acquire 5.1% stake in Jiangsu Hoperun Software Co., Ltd. (SZSE:300339) from Jiangsu Runhe Technology Investment Group Co., Ltd., Ningbo Hongchuang Equity Investment Partnership Enterprise (Limited Partnership), Zhou Hongwei and Yao Ning for approximately CNY 490 million on July 16, 2019. Upon completion, Jiangsu Runhe Technology Investment Group Co., Ltd., Ningbo Hongchuang Equity Investment Partnership Enterprise (Limited Partnership), Zhou Hongwei, Yao Ning and Service Trade Innovation Development Guiding Fund (Limited Partnership) will hold 13.45%, 4.53%, 4.26%, 4.53 and 5.13% stake in Jiangsu Hoperun Software Co., Ltd. Service Trade Innovation Development Guiding Fund (Limited Partnership) will acquire 40 million shares at a price of CNY 12.19 per share.
Service Trade Innovative Development Guidance Fund (LP), fund of China Merchants Capital Management Co., Ltd. cancelled the acquisition of 5.1% stake in Jiangsu Hoperun Software Co., Ltd. (SZSE:300339) from Jiangsu Runhe Technology Investment Group Co., Ltd., Ningbo Hongchuang Equity Investment Partnership Enterprise (Limited Partnership), Zhou Hongwei and Yao Ning on July 16, 2020. Announcement • Jul 31
Nanjing Runchuang Information Technology Partnership (Limited Partnership) cancelled the acquisition of 35.75% stake in Nanjing Runchen Technology Co., Ltd. from Jiangsu Hoperun Software Co., Ltd. (SZSE:300339). Nanjing Runchuang Information Technology Partnership (Limited Partnership) signed an equity transfer agreement to acquire 35.75% stake in Nanjing Runchen Technology Co., Ltd. from Jiangsu Hoperun Software Co., Ltd. (SZSE:300339) for CNY 2.5 million on April 11, 2019. In a related transaction, Jiangsu Hoperun will also transfer the capital contribution obligation that has been subscribed but has not yet paid which is CNY 8.25 million to Nanjing Runchuang. After the completion of the transaction, Jiangsu Hoperun will hold 19.25% of the equity of Nanjing Runchen Technology. For the year ended December 2018, Nanjing Runchen Technology had total assets of CNY 7.5 million, net assets of CNY 6 million, revenues of CNY 2.7 million, operating loss and net loss of CNY 0.01 million. The transaction has been approved by Shenzhen Stock Exchange GEM Listing Rules and Articles of Association and is subject to approval of Jiangsu Hoperun's Board of Directors.
Nanjing Runchuang Information Technology Partnership (Limited Partnership) cancelled the acquisition of 35.75% stake in Nanjing Runchen Technology Co., Ltd. from Jiangsu Hoperun Software Co., Ltd. (SZSE:300339) on April 11, 2020. Announcement • Jul 19
Jiangsu Hoperun Software Co., Ltd. to Report First Half, 2020 Results on Aug 12, 2020 Jiangsu Hoperun Software Co., Ltd. announced that they will report first half, 2020 results on Aug 12, 2020