Neusoft Corporation

XSSC:600718 Stock Report

Market Cap: CN¥9.5b

Neusoft Valuation

Is 600718 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 600718 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

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Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: 600718 (CN¥7.92) is trading below our estimate of future cash flow value (CN¥13.48)

Significantly Below Future Cash Flow Value: 600718 is trading below future cash flow value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 600718?

Key metric: As 600718 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 600718. This is calculated by dividing 600718's market cap by their current revenue.
What is 600718's PS Ratio?
PS Ratio0.8x
SalesCN¥11.74b
Market CapCN¥9.48b

Price to Sales Ratio vs Peers

How does 600718's PS Ratio compare to its peers?

The above table shows the PS ratio for 600718 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average5x
300378 Digiwin
3.9x13.22%CN¥9.9b
603533 IReader Technology
3.1xn/aCN¥10.3b
688083 ZwsoftLtd
9x14.74%CN¥8.4b
002063 YGSOFT
4x10.04%CN¥10.5b
600718 Neusoft
0.8x18.02%CN¥9.5b

Price-To-Sales vs Peers: 600718 is good value based on its Price-To-Sales Ratio (0.8x) compared to the peer average (5x).

Historical Price to Sales Ratio

Historical Price to Sales Ratio compares a stock's price to its sales over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Sales Ratio vs Industry

How does 600718's PS Ratio compare vs other companies in the CN Software Industry?

7 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.7.0x15.0%
600718 Neusoft
 0.8x18.02%US$1.41b
300047 Shenzhen Tianyuan DIC Information Technology
0.6xn/aUS$863.85m
688225 Asiainfo Security TechnologiesLtd
0.7x15.33%US$734.36m
600718 0.8xIndustry Avg. 7.0xNo. of Companies17PS048121620+
7 CompaniesEstimated GrowthMarket Cap
Industry Avg.7.0x33.4%
600718 Neusoft
 0.8x90.25%US$1.41b
No more companies

Price-To-Sales vs Industry: 600718 is good value based on its Price-To-Sales Ratio (0.8x) compared to the CN Software industry average (7.2x).

Price to Sales Ratio vs Fair Ratio

What is 600718's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

600718 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.8x
Fair PS Ratio3.2x

Price-To-Sales vs Fair Ratio: 600718 is good value based on its Price-To-Sales Ratio (0.8x) compared to the estimated Fair Price-To-Sales Ratio (3.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 600718 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCN¥7.92
CN¥11.86
+49.68%
9.66%CN¥13.00CN¥10.71n/a2
Sep ’27CN¥8.36
CN¥11.86
+41.81%
9.66%CN¥13.00CN¥10.71n/a2
Aug ’27CN¥8.45
CN¥11.86
+40.30%
9.66%CN¥13.00CN¥10.71n/a2
Jul ’27CN¥7.39
CN¥11.86
+60.42%
9.66%CN¥13.00CN¥10.71n/a2
Jun ’27CN¥8.43
CN¥11.86
+40.63%
9.66%CN¥13.00CN¥10.71n/a2
May ’27CN¥8.84
CN¥11.86
+34.11%
9.66%CN¥13.00CN¥10.71n/a2
Apr ’27CN¥9.11
CN¥14.49
+59.06%
10.28%CN¥15.98CN¥13.00n/a2
Mar ’27CN¥10.42
CN¥14.49
+39.06%
10.28%CN¥15.98CN¥13.00n/a2
Feb ’27CN¥10.46
CN¥14.49
+38.53%
10.28%CN¥15.98CN¥13.00n/a2
Jan ’27CN¥10.07
CN¥14.49
+43.89%
10.28%CN¥15.98CN¥13.00n/a2
Dec ’26CN¥10.37
CN¥14.49
+39.73%
10.28%CN¥15.98CN¥13.00n/a2
Nov ’26CN¥10.52
CN¥14.49
+37.74%
10.28%CN¥15.98CN¥13.00n/a2
Oct ’26CN¥11.22
CN¥14.49
+29.14%
10.28%CN¥15.98CN¥13.00n/a2
Sep ’26CN¥10.77
CN¥14.49
+34.54%
10.28%CN¥15.98CN¥13.00CN¥8.362
Aug ’26CN¥9.97
CN¥13.39
+34.30%
15.90%CN¥16.17CN¥11.00CN¥8.453
Jul ’26CN¥9.64
CN¥13.39
+38.90%
15.90%CN¥16.17CN¥11.00CN¥7.393
Jun ’26CN¥9.67
CN¥13.39
+38.47%
15.90%CN¥16.17CN¥11.00CN¥8.433
May ’26CN¥10.03
CN¥13.39
+33.50%
15.90%CN¥16.17CN¥11.00CN¥8.843
Apr ’26CN¥11.28
CN¥13.97
+23.88%
20.81%CN¥17.92CN¥11.00CN¥9.113
Mar ’26CN¥11.05
CN¥13.97
+26.46%
20.81%CN¥17.92CN¥11.00CN¥10.423
Feb ’26CN¥9.48
CN¥13.97
+47.40%
20.81%CN¥17.92CN¥11.00CN¥10.463
Jan ’26CN¥10.77
CN¥14.97
+39.03%
14.18%CN¥17.92CN¥13.00CN¥10.073
Dec ’25CN¥10.60
CN¥13.11
+23.65%
25.98%CN¥17.92CN¥10.60CN¥10.373
Nov ’25CN¥10.56
CN¥13.11
+24.12%
25.98%CN¥17.92CN¥10.60CN¥10.523
Oct ’25CN¥10.25
CN¥10.66
+4.00%
0.93%CN¥10.80CN¥10.58CN¥11.223
Sep ’25CN¥8.12
CN¥10.66
+31.28%
0.93%CN¥10.80CN¥10.58CN¥10.773
CN¥11.86
Fair Value
33.2% undervalued intrinsic discount
2
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/09/10 14:17
End of Day Share Price 2026/09/10 00:00
Earnings2026/06/30
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Neusoft Corporation is covered by 12 analysts. 1 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Zhihao WangChina International Capital Corporation Limited
Junyi PuEverbright Securities Co. Ltd.
Guoping JiangEverbright Securities Co. Ltd.