Executive Summary
Sinosoft Technology Group Limited, an investment holding company, primarily provides software development and system integration services in the People's Republic of China.
Rewards
Risk Analysis
Snowflake Analysis
Very undervalued with excellent balance sheet.
Share Price & News
How has Sinosoft Technology Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 1297's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
11.2%
1297
8.1%
HK Software
7.4%
HK Market
1 Year Return
-58.7%
1297
4.2%
HK Software
-22.7%
HK Market
Return vs Industry: 1297 underperformed the Hong Kong Software industry which returned 5% over the past year.
Return vs Market: 1297 underperformed the Hong Kong Market which returned -20.3% over the past year.
Shareholder returns
| 1297 | Industry | Market | |
|---|---|---|---|
| 7 Day | 11.2% | 8.1% | 7.4% |
| 30 Day | -27.0% | -2.9% | -11.2% |
| 90 Day | -25.2% | 20.0% | -17.3% |
| 1 Year | -58.3%-58.7% | 4.5%4.2% | -19.9%-22.7% |
| 3 Year | -50.5%-52.0% | 31.1%29.7% | -5.3%-14.8% |
| 5 Year | -70.3%-71.4% | 5.5%0.1% | -8.7%-23.4% |
Price Volatility Vs. Market
How volatile is Sinosoft Technology Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
A Sliding Share Price Has Us Looking At Sinosoft Technology Group Limited's (HKG:1297) P/E Ratio3 weeks ago | Simply Wall St
Who Has Been Buying Sinosoft Technology Group Limited (HKG:1297) Shares?1 month ago | Simply Wall St
How Much Of Sinosoft Technology Group Limited (HKG:1297) Do Insiders Own?Valuation
Is Sinosoft Technology Group undervalued compared to its fair value and its price relative to the market?
40.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 1297 (HK$1.14) is trading below our estimate of fair value (HK$4.35)
Significantly Below Fair Value: 1297 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 1297 is good value based on its PE Ratio (5.1x) compared to the Software industry average (15.6x).
PE vs Market: 1297 is good value based on its PE Ratio (5.1x) compared to the Hong Kong market (9x).
Price to Earnings Growth Ratio
PEG Ratio: 1297 is good value based on its PEG Ratio (0.3x)
Price to Book Ratio
PB vs Industry: 1297 is good value based on its PB Ratio (0.9x) compared to the HK Software industry average (1.1x).
Next Steps
Future Growth
How is Sinosoft Technology Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
7.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 1297's forecast earnings growth (19.2% per year) is above the savings rate (1.6%).
Earnings vs Market: 1297's earnings (19.2% per year) are forecast to grow faster than the Hong Kong market (12.8% per year).
High Growth Earnings: 1297's earnings are forecast to grow, but not significantly.
Revenue vs Market: 1297's revenue (14% per year) is forecast to grow faster than the Hong Kong market (9.9% per year).
High Growth Revenue: 1297's revenue (14% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 1297's Return on Equity is forecast to be low in 3 years time (18.9%).
Next Steps
Past Performance
How has Sinosoft Technology Group performed over the past 5 years?
14.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 1297 has high quality earnings.
Growing Profit Margin: 1297's current net profit margins (33.1%) are lower than last year (37.5%).
Past Earnings Growth Analysis
Earnings Trend: 1297's earnings have grown by 14.8% per year over the past 5 years.
Accelerating Growth: 1297's earnings growth over the past year (2.2%) is below its 5-year average (14.8% per year).
Earnings vs Industry: 1297 earnings growth over the past year (2.2%) underperformed the Software industry 11.7%.
Return on Equity
High ROE: 1297's Return on Equity (17.1%) is considered low.
Next Steps
Financial Health
How is Sinosoft Technology Group's financial position?
Financial Position Analysis
Short Term Liabilities: 1297's short term assets (CN¥1.4B) exceed its short term liabilities (CN¥265.2M).
Long Term Liabilities: 1297's short term assets (CN¥1.4B) exceed its long term liabilities (CN¥57.3M).
Debt to Equity History and Analysis
Debt Level: 1297's debt to equity ratio (1.4%) is considered satisfactory.
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 (1087.4%).
Interest Coverage: 1297's interest payments on its debt are well covered by EBIT (1075.7x coverage).
Balance Sheet
Inventory Level: 1297 has a low level of unsold assets or inventory.
Debt Coverage by Assets: 1297's debt is covered by short term assets (assets are 68.4x debt).
Next Steps
Dividend
What is Sinosoft Technology Group's current dividend yield, its reliability and sustainability?
1.84%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 1297's dividend (1.92%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.67%).
High Dividend: 1297's dividend (1.92%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.29%).
Stability and Growth of Payments
Stable Dividend: 1297 has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: 1297's dividend payments have increased, but the company has only paid a dividend for 6 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (9.8%), 1297's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 1297's dividends in 3 years are forecast to be thoroughly covered by earnings (11.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
7.4yrs
Average board tenure
CEO
Yingmei Xin (52yo)
no data
Tenure
CN¥2,500,000
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 ($USD352.32K) is about average for companies of similar size in the Hong Kong market ($USD301.52K).
Compensation vs Earnings: Yingmei's compensation has been consistent with company performance over the past year.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairlady & CEO | no data | CN¥2.50m | 40.78% CN¥593.2m | |
| CFO & Executive Director | 1.17yrs | no data | 0.0041% CN¥59.5k | |
| Independent Non Executive Director | 7.42yrs | CN¥151.00k | no data | |
| Independent Non Executive Director | 7.42yrs | CN¥151.00k | no data | |
| Independent Non Executive Director | 7.42yrs | CN¥101.00k | no data | |
| Non-Executive Director | 0.67yr | no data | no data |
7.4yrs
Average Tenure
53.5yo
Average Age
Experienced Board: 1297's board of directors are considered experienced (7.4 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 company bio, 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
- Market Cap: HK$1.455b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 1297 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Jul 2013 |
| 79S | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jul 2013 |
Biography
Sinosoft Technology Group Limited, an investment holding company, primarily provides software development and system integration services in the People's Republic of China. It operates through four segments: Tax Software and Related Services, Low Carbon & Ecology Software and Related Services, Government Big Data Software and Related Services, and System Integration Solutions. The company offers export tax software products, consultation services, and training courses. It also provides e-government solutions and products that are used by government agencies at various administrative levels, including the ministerial, provincial, municipal, and district levels. In addition, the company offers carbon management solutions that enable government agencies or enterprises to audit, calculate, and control their greenhouse gas emissions and energy consumption. Further, it provides system integration solutions to government agencies, including information systems consultation and feasibility analysis; sourcing of systems and equipment; LAN and Web-based network design and implementation; analysis, planning, and design of integrated wiring and network systems; design and implementation of video conferencing and multimedia education systems; and system management and supervision, as well as services comprising system architectures, intuitive graphical and multimedia user interfaces, Web services, and other Internet technologies. Additionally, the company sells computer products, as well as offers related services; provides investment and advisory services; and holds properties. Sinosoft Technology Group Limited was incorporated in 2011 and is headquartered in Nanjing, China.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/31 14:24 |
| End of Day Share Price | 2020/03/31 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.