Hangzhou DPtech TechnologiesLtd (SZSE:300768) - Share price, News & Analysis

300768 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	5/6
Past Performance	2/6
Financial Health	6/6
Dividends	3/6

300768 Stock Overview

Hangzhou DPtech Technologies Co.,Ltd. engages in the research and development, production, and sale of network security and application delivery products in China and internationally.

Rewards

Trading at 31.4% below our estimate of its fair value

Earnings are forecast to grow 26.52% per year

Earnings grew by 8.8% over the past year

Risk Analysis

High level of non-cash earnings

Unstable dividend track record

Shareholders have been diluted in the past year

Hangzhou DPtech TechnologiesLtd Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Hangzhou DPtech TechnologiesLtd
Historical stock prices
Current Share Price	CN¥21.12
52 Week High	CN¥47.97
52 Week Low	CN¥18.51
Beta	0.36
1 Month Change	-14.84%
3 Month Change	-40.76%
1 Year Change	-39.54%
3 Year Change	-30.53%
5 Year Change	n/a
Change since IPO	30.61%

Shareholder Returns

	300768	CN Software	CN Market
7D	-0.4%	0.7%	1.0%
1Y	-39.5%	-31.7%	-15.4%

Return vs Industry: 300768 underperformed the CN Software industry which returned -31.7% over the past year.

Return vs Market: 300768 underperformed the CN Market which returned -15.4% over the past year.

Price Volatility

Is 300768's price volatile compared to industry and market?
300768 volatility
300768 Average Weekly Movement	5.8%
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: 300768 is less volatile than 75% of CN stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 300768's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2008	1,357	n/a	https://www.dptech.com

Hangzhou DPtech Technologies Co.,Ltd. engages in the research and development, production, and sale of network security and application delivery products in China and internationally. The company offers network security products, such as application firewall, intelligent security gateway, intrusion prevention system, web application firewall, anti-DDoS system, IoT security control system, industrial firewall, cybersecurity detection platform, cybersecurity risk management and control platform, and cybersecurity situation awareness platform; and security service products, such as security risk evaluation, penetration testing services, gap analysis on cybersecurity protection system, security technology system planning, security management consultation, rectifications for gaps in cybersecurity protection system, on-site security inspection, security reinforcement, emergency response services, security notifications, and drills and training for security attack and defense.

Hangzhou DPtech TechnologiesLtd Fundamentals Summary

How do Hangzhou DPtech TechnologiesLtd's earnings and revenue compare to its market cap?
300768 fundamental statistics
Market Cap	CN¥9.07b
Earnings (TTM)	CN¥308.15m
Revenue (TTM)	CN¥1.05b

29.4x

P/E Ratio

8.6x

P/S Ratio

Is 300768 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
300768 income statement (TTM)
Revenue	CN¥1.05b
Cost of Revenue	CN¥312.95m
Gross Profit	CN¥737.31m
Other Expenses	CN¥429.15m
Earnings	CN¥308.15m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.72
Gross Margin	70.20%
Net Profit Margin	29.34%
Debt/Equity Ratio	0%

How did 300768 perform over the long term?

See historical performance and comparison

Dividends

0.7%

Current Dividend Yield

19%

Payout Ratio

Valuation

Is Hangzhou DPtech TechnologiesLtd undervalued compared to its fair value and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

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

31.4%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 300768 (CN¥21.12) is trading below our estimate of fair value (CN¥30.79)

Significantly Below Fair Value: 300768 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: 300768 is good value based on its PE Ratio (29.4x) compared to the CN Software industry average (48.9x).

PE vs Market: 300768 is good value based on its PE Ratio (29.4x) compared to the CN market (30.5x).

Price to Earnings Growth Ratio

PEG Ratio: 300768 is poor value based on its PEG Ratio (1.1x)

Price to Book Ratio

PB vs Industry: 300768's PB Ratio (2.8x) is in line with the CN Software industry average.

Future Growth

How is Hangzhou DPtech TechnologiesLtd forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

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

26.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 300768's forecast earnings growth (26.5% per year) is above the savings rate (3.3%).

Earnings vs Market: 300768's earnings (26.5% per year) are forecast to grow faster than the CN market (23.8% per year).

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

Revenue vs Market: 300768's revenue (23.6% per year) is forecast to grow faster than the CN market (17.3% per year).

High Growth Revenue: 300768's revenue (23.6% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 300768's Return on Equity is forecast to be low in 3 years time (15%).

Past Performance

How has Hangzhou DPtech TechnologiesLtd performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

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

14.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 300768 has a high level of non-cash earnings.

Growing Profit Margin: 300768's current net profit margins (29.3%) are lower than last year (29.9%).

Past Earnings Growth Analysis

Earnings Trend: 300768's earnings have grown by 14.1% per year over the past 5 years.

Accelerating Growth: 300768's earnings growth over the past year (8.8%) is below its 5-year average (14.1% per year).

Earnings vs Industry: 300768 earnings growth over the past year (8.8%) exceeded the Software industry -12.9%.

Return on Equity

High ROE: 300768's Return on Equity (9.5%) is considered low.

Financial Health

How is Hangzhou DPtech TechnologiesLtd'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: 300768's short term assets (CN¥3.3B) exceed its short term liabilities (CN¥338.8M).

Long Term Liabilities: 300768's short term assets (CN¥3.3B) exceed its long term liabilities (CN¥24.3M).

Debt to Equity History and Analysis

Debt Level: 300768 is debt free.

Reducing Debt: 300768 has no debt compared to 5 years ago when its debt to equity ratio was 4.7%.

Debt Coverage: 300768 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 300768 has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is Hangzhou DPtech TechnologiesLtd current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

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

0.66%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 300768's dividend (0.66%) is higher than the bottom 25% of dividend payers in the CN market (0.54%).

High Dividend: 300768's dividend (0.66%) is low compared to the top 25% of dividend payers in the CN market (2.11%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 300768 has been paying a dividend for less than 10 years.

Growing Dividend: 300768's dividend payments have increased, but the company has only paid a dividend for 2 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (18.8%), 300768's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (24.6%), 300768's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

2.0yrs

Average board tenure

CEO

Hangzhou DPtech TechnologiesLtd has no CEO, or we have no data on them.

Board Members

Experienced Board: 300768's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.

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 been diluted in the past year, with total shares outstanding growing by 7.3%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/19 00:00
End of Day Share Price	2022/05/19 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31