SEHK:1147

Stock Analysis Report

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Executive Summary

Edensoft Holdings Limited operates as an integrated IT solution and cloud services provider in the People’s Republic of China. More Details


Snowflake Analysis

Excellent balance sheet and good value.

Share Price & News

How has Edensoft Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1147 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 1147's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

28.4%

1147

7.5%

HK IT

5.7%

HK Market


1 Year Return

n/a

1147

23.0%

HK IT

14.3%

HK Market

Return vs Industry: Insufficient data to determine how 1147 performed against the Hong Kong IT industry.

Return vs Market: Insufficient data to determine how 1147 performed against the Hong Kong Market.


Shareholder returns

1147IndustryMarket
7 Day28.4%7.5%5.7%
30 Day20.8%9.2%13.6%
90 Day11.9%17.7%19.6%
1 Yearn/a25.4%23.0%18.9%14.3%
3 Yearn/a-8.0%-12.7%-2.9%-13.1%
5 Yearn/a48.9%32.8%70.9%42.2%

Long-Term Price Volatility Vs. Market

How volatile is Edensoft Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1147 (HK$0.12) is trading below our estimate of fair value (HK$3.38)

Significantly Below Fair Value: 1147 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1147 is good value based on its PE Ratio (10.2x) compared to the HK IT industry average (13.3x).

PE vs Market: 1147 is good value based on its PE Ratio (10.2x) compared to the Hong Kong market (11.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1147's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1147's PB Ratio (1.1x) is in line with the HK IT industry average.


Next Steps

Future Growth

How is Edensoft Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

36.1%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Edensoft Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Edensoft Holdings performed over the past 5 years?

9.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1147 has high quality earnings.

Growing Profit Margin: 1147's current net profit margins (3.1%) are lower than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: 1147's earnings have grown by 9.7% per year over the past 5 years.

Accelerating Growth: 1147's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1147 had negative earnings growth (-22.7%) over the past year, making it difficult to compare to the IT industry average (-7.6%).


Return on Equity

High ROE: 1147's Return on Equity (10.4%) is considered low.


Next Steps

Financial Health

How is Edensoft Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1147's short term assets (CN¥368.3M) exceed its short term liabilities (CN¥184.8M).

Long Term Liabilities: 1147's short term assets (CN¥368.3M) exceed its long term liabilities (CN¥1.1M).


Debt to Equity History and Analysis

Debt Level: 1147's debt to equity ratio (0.01%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 1147's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1147's debt is well covered by operating cash flow (689516.7%).

Interest Coverage: 1147's interest payments on its debt are well covered by EBIT (40.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Edensoft Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1147's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1147's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1147's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1147's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1147's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

1.1yrs

Average board tenure


CEO

Xinyun Ding (49 yo)

no data

Tenure

Ms. Ding Xinyun has been Director at September 4, 2018, Executive Director at March 8, 2019 at Edensoft Holdings Ltd and also serves at its Chairman and Chief Executive Officer. Ms. Ding is also a director...


Board Members

NamePositionTenureCompensationOwnership
Xinyun Ding
CEO & Chairman of the Boardno datano datano data
Yi Li
Executive Director & Compliance Officer1.42yrsno datano data
Dongping Peng
Executive Director1.83yrsno datano data
Yunzhi Ling
Executive Director1.83yrsno datano data
Ka Chun Ho
Independent Non-Executive Director0.75yrno datano data
Chi Liang
Independent Non-Executive Director0.75yrno datano data
Kwok Leung Yu
Independent Non-Executive Director0.75yrno datano data

1.1yrs

Average Tenure

44yo

Average Age

Experienced Board: 1147's board of directors are not considered experienced ( 1.1 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: 1147 only recently listed within the past 12 months.


Top Shareholders

Company Information

Edensoft Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Edensoft Holdings Limited
  • Ticker: 1147
  • Exchange: SEHK
  • Founded: 2002
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: HK$214.000m
  • Shares outstanding: 2.00b
  • Website: https://edensoft.com.cn

Number of Employees


Location

  • Edensoft Holdings Limited
  • Shenzhen International Innovation Center
  • West, 2nd Floor
  • Shenzhen
  • Guangdong Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1147SEHK (The Stock Exchange of Hong Kong Ltd.)YesShare CapitalHKHKDMay 2020

Biography

Edensoft Holdings Limited operates as an integrated IT solution and cloud services provider in the People’s Republic of China. It provides IT infrastructure, IT implementation and supporting, and cloud ser...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/21 10:15
End of Day Share Price2021/01/21 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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 here.