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1297

Sinosoft Technology Group SEHK:1297 Stock Report

Last Price

HK$0.40

Market Cap

HK$482.8m

7D

1.3%

1Y

-64.4%

Updated

18 Aug, 2022

Data

Company Financials
1297 fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance2/6
Financial Health5/6
Dividends0/6

1297 Stock Overview

Sinosoft Technology Group Limited, an investment holding company, engages in the development and promotion of software products and solutions in the People’s Republic of China.

Sinosoft Technology Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Sinosoft Technology Group
Historical stock prices
Current Share PriceHK$0.40
52 Week HighHK$1.27
52 Week LowHK$0.35
Beta0.92
1 Month Change-8.14%
3 Month Change-8.14%
1 Year Change-64.41%
3 Year Change-79.64%
5 Year Change-83.54%
Change since IPO-66.14%

Recent News & Updates

Jul 27
Sinosoft Technology Group (HKG:1297) Might Be Having Difficulty Using Its Capital Effectively

Sinosoft Technology Group (HKG:1297) Might Be Having Difficulty Using Its Capital Effectively

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Firstly...

Apr 28
Here's Why Sinosoft Technology Group (HKG:1297) Can Manage Its Debt Responsibly

Here's Why Sinosoft Technology Group (HKG:1297) Can Manage Its Debt Responsibly

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

1297HK SoftwareHK Market
7D1.3%-1.3%1.5%
1Y-64.4%-49.9%-20.8%

Return vs Industry: 1297 underperformed the Hong Kong Software industry which returned -49.9% over the past year.

Return vs Market: 1297 underperformed the Hong Kong Market which returned -20.8% over the past year.

Price Volatility

Is 1297's price volatile compared to industry and market?
1297 volatility
1297 Average Weekly Movement8.6%
Software Industry Average Movement7.4%
Market Average Movement6.5%
10% most volatile stocks in HK Market12.8%
10% least volatile stocks in HK Market3.2%

Stable Share Price: 1297 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: 1297's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2011507Yingmei Xinhttps://www.sinosoft-technology.com

Sinosoft Technology Group Limited, an investment holding company, engages in the development and promotion of software products and solutions in the People’s Republic of China. It operates through Low Carbon & Ecology Software and Related Services, and Government Big Data Software and Related Services segments. The company provides e-government solutions and products that are used by government agencies at various administrative levels, including the ministerial, provincial, municipal, and district levels.

Sinosoft Technology Group Fundamentals Summary

How do Sinosoft Technology Group's earnings and revenue compare to its market cap?
1297 fundamental statistics
Market CapHK$482.84m
Earnings (TTM)HK$18.28m
Revenue (TTM)HK$678.28m

26.4x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
1297 income statement (TTM)
RevenueCN¥586.41m
Cost of RevenueCN¥398.58m
Gross ProfitCN¥187.84m
Other ExpensesCN¥172.03m
EarningsCN¥15.81m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 29, 2022

Earnings per share (EPS)0.013
Gross Margin32.03%
Net Profit Margin2.70%
Debt/Equity Ratio1.0%

How did 1297 perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is 1297 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1297?

Other financial metrics that can be useful for relative valuation.

1297 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.4x
Enterprise Value/EBITDA19.6x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does 1297's PE Ratio compare to its peers?

1297 PE Ratio vs Peers
The above table shows the PE ratio for 1297 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average42.2x
418 Founder Holdings
13.5xn/aHK$587.9m
1522 BII Railway Transportation Technology Holdings
3.9xn/aHK$723.5m
2167 TI Cloud
78xn/aHK$1.6b
8036 eBroker Group
73.3xn/aHK$104.6m
1297 Sinosoft Technology Group
26.4xn/aHK$482.8m

Price-To-Earnings vs Peers: 1297 is good value based on its Price-To-Earnings Ratio (26.4x) compared to the peer average (42.2x).


Price to Earnings Ratio vs Industry

How does 1297's PE Ratio compare vs other companies in the Asian Software Industry?

Price-To-Earnings vs Industry: 1297 is expensive based on its Price-To-Earnings Ratio (26.4x) compared to the Hong Kong Software industry average (19.8x)


Price to Earnings Ratio vs Fair Ratio

What is 1297's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1297 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26.4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 1297's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 1297 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate 1297's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate 1297's fair value for valuation analysis.


Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is Sinosoft Technology Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


59.2%

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 Sinosoft Technology Group 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.


Discover growth companies

  • Examine Sinosoft Technology Group's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  • Sinosoft Technology Group competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Sinosoft Technology Group 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


5.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1297 has high quality earnings.

Growing Profit Margin: 1297's current net profit margins (2.7%) are lower than last year (84.2%).


Past Earnings Growth Analysis

Earnings Trend: 1297's earnings have grown by 5.3% per year over the past 5 years.

Accelerating Growth: 1297's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1297 had negative earnings growth (-96.5%) over the past year, making it difficult to compare to the Software industry average (-14.3%).


Return on Equity

High ROE: 1297's Return on Equity (0.8%) is considered low.


Discover strong past performing companies

Financial Health

How is Sinosoft Technology Group's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 1297's short term assets (CN¥1.7B) exceed its short term liabilities (CN¥213.8M).

Long Term Liabilities: 1297's short term assets (CN¥1.7B) exceed its long term liabilities (CN¥77.2M).


Debt to Equity History and Analysis

Debt Level: 1297 has more cash than its total debt.

Reducing Debt: Insufficient data to determine if 1297's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1297's debt is well covered by operating cash flow (453.7%).

Interest Coverage: 1297 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Sinosoft Technology Group current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1297's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1297'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 1297's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1297's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: 1297 is not paying a notable dividend for the Hong Kong market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 1297 has not reported any payouts.


Discover strong dividend paying companies

Management

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

1.6yrs

Average management tenure


CEO

Yingmei Xin (55 yo)

no data

Tenure

CN¥2,800,000

Compensation

Ms. Yingmei Xin founded Sinosoft Technology Plc in 1998 and serves as its Chief Executive Officer. Ms. Yingmei serves as the Chairlady and Chief Executive Officer at Sinosoft Technology Group Limited. She...


CEO Compensation Analysis

Compensation vs Market: Yingmei's total compensation ($USD412.92K) is above average for companies of similar size in the Hong Kong market ($USD244.40K).

Compensation vs Earnings: Yingmei's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 1297's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: 1297's board of directors are considered experienced (6.7 years average tenure).


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sinosoft Technology Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Sinosoft Technology Group Limited
  • Ticker: 1297
  • Exchange: SEHK
  • Founded: 2011
  • Industry: Application Software
  • Sector: Software
  • Implied Market Cap: HK$482.842m
  • Shares outstanding: 1.22b
  • Website: https://www.sinosoft-technology.com

Number of Employees


Location

  • Sinosoft Technology Group Limited
  • No. 26 Tianpu Road
  • Jiangpu Street
  • Nanjing
  • Jiangsu Province
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/18 00:00
End of Day Share Price2022/08/18 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.