Pansoft (SZSE:300996) - Share price, News & Analysis

300996 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	6/6
Past Performance	5/6
Financial Health	6/6
Dividends	3/6

300996 Stock Overview

Pansoft Company Limited provides enterprise management information solutions and IT integrated services in China.

Rewards

Trading at 59.7% below our estimate of its fair value

Earnings are forecast to grow 38.47% per year

Earnings grew by 58.3% over the past year

Risk Analysis

Unstable dividend track record

Pansoft Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Pansoft
Historical stock prices
Current Share Price	CN¥21.90
52 Week High	CN¥49.72
52 Week Low	CN¥19.95
Beta	0
1 Month Change	-18.68%
3 Month Change	-41.62%
1 Year Change	n/a
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-48.62%

Shareholder Returns

	300996	CN Software	CN Market
7D	-0.9%	2.1%	2.9%
1Y	n/a	-32.7%	-15.8%

Return vs Industry: Insufficient data to determine how 300996 performed against the CN Software industry.

Return vs Market: Insufficient data to determine how 300996 performed against the CN Market.

Price Volatility

Is 300996's price volatile compared to industry and market?
300996 volatility
300996 Average Weekly Movement	7.4%
Software Industry Average Movement	7.3%
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: 300996 is not significantly more volatile than the rest of CN stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 300996's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2001	1,734	Hugh Wang	https://www.pansoft.com

Pansoft Company Limited provides enterprise management information solutions and IT integrated services in China. It engages in production, operation, and information services in the fields of finance, capital, internal control, supervision, human resources, etc.; and provides information system design, software development, system implementation, and technical support. The company’s domain solutions include group financial and fund management system programs, group asset management system solutions, financial shared service solutions, XBRL series products and application solutions, group corporate tax management plans, general industry human resource management solutions, and benefit allocation decision system plans.

Pansoft Fundamentals Summary

How do Pansoft's earnings and revenue compare to its market cap?
300996 fundamental statistics
Market Cap	CN¥3.10b
Earnings (TTM)	CN¥123.72m
Revenue (TTM)	CN¥594.50m

25.0x

P/E Ratio

5.2x

P/S Ratio

Is 300996 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
300996 income statement (TTM)
Revenue	CN¥594.50m
Cost of Revenue	CN¥322.68m
Gross Profit	CN¥271.82m
Other Expenses	CN¥148.10m
Earnings	CN¥123.72m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.88
Gross Margin	45.72%
Net Profit Margin	20.81%
Debt/Equity Ratio	0%

How did 300996 perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

33%

Payout Ratio

Does 300996 pay a reliable dividends?

See 300996 dividend history and benchmarks

When do you need to buy 300996 by to receive an upcoming dividend?
Pansoft dividend dates
Ex Dividend Date	May 18 2022
Dividend Pay Date	May 18 2022
Days until Ex dividend	1 day
Days until Dividend pay date	1 day

Does 300996 pay a reliable dividends?

See 300996 dividend history and benchmarks

Valuation

Is Pansoft undervalued compared to its fair value and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

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

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 300996 (CN¥21.9) is trading below our estimate of fair value (CN¥54.35)

Significantly Below Fair Value: 300996 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: 300996 is good value based on its PE Ratio (25x) compared to the CN Software industry average (47.4x).

PE vs Market: 300996 is good value based on its PE Ratio (25x) compared to the CN market (30.4x).

Price to Earnings Growth Ratio

PEG Ratio: 300996 is good value based on its PEG Ratio (0.6x)

Price to Book Ratio

PB vs Industry: 300996 is overvalued based on its PB Ratio (3.4x) compared to the CN Software industry average (2.8x).

Future Growth

How is Pansoft forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

6/6

Future Growth Score 6/6

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

38.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 300996's forecast earnings growth (38.5% per year) is above the savings rate (3.3%).

Earnings vs Market: 300996's earnings (38.5% 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: 300996's revenue (31.3% per year) is forecast to grow faster than the CN market (17.2% per year).

High Growth Revenue: 300996's revenue (31.3% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 300996's Return on Equity is forecast to be high in 3 years time (21.5%)

Past Performance

How has Pansoft performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

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

33.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 300996 has high quality earnings.

Growing Profit Margin: 300996's current net profit margins (20.8%) are higher than last year (19%).

Past Earnings Growth Analysis

Earnings Trend: 300996's earnings have grown significantly by 33% per year over the past 5 years.

Accelerating Growth: 300996's earnings growth over the past year (58.3%) exceeds its 5-year average (33% per year).

Earnings vs Industry: 300996 earnings growth over the past year (58.3%) exceeded the Software industry -13%.

Return on Equity

High ROE: 300996's Return on Equity (12.9%) is considered low.

Financial Health

How is Pansoft'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: 300996's short term assets (CN¥915.5M) exceed its short term liabilities (CN¥93.3M).

Long Term Liabilities: 300996's short term assets (CN¥915.5M) exceed its long term liabilities (CN¥8.9M).

Debt to Equity History and Analysis

Debt Level: 300996 is debt free.

Reducing Debt: 300996 had no debt 5 years ago.

Debt Coverage: 300996 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 300996 has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is Pansoft current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

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

1.37%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 300996's dividend (1.37%) is higher than the bottom 25% of dividend payers in the CN market (0.55%).

High Dividend: 300996's dividend (1.37%) is low compared to the top 25% of dividend payers in the CN market (2.11%).

Stability and Growth of Payments

Stable Dividend: Too early to tell whether 300996's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 300996's dividend payments are increasing as they only just started paying a dividend.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (32.8%), 300996's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (61.1%), 300996's dividend payments are 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¥590k

CEO Compensation

CEO

Hugh Wang (70 yo)

no data

Tenure

CN¥589,826

Compensation

Mr. Hugh Wang founded Pansoft Company Limited in 2001 and serves as its Chief Executive Officer. Mr. Wang served as Senior Programmer for the Information Center of Jinan Railway Management Bureau, one of 1...

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: 300996 only recently listed within the past 12 months.

Data	Last Updated (UTC time)
Company Analysis	2022/05/17 00:00
End of Day Share Price	2022/05/17 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31