Executive Summary
Sinosoft Technology Group Limited, an investment holding company, provides software development and system integration services, and sales of related computer products in the People’s Republic of China. More Details
Rewards
Risk Analysis
No risks detected for 1297 from our risk checks.
Snowflake Analysis
Excellent balance sheet and good value.
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 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.
Market Performance
7 Day Return
5.8%
1297
4.1%
HK Software
2.2%
HK Market
1 Year Return
-21.1%
1297
167.4%
HK Software
7.2%
HK Market
Return vs Industry: 1297 underperformed the Hong Kong Software industry which returned 164.3% over the past year.
Return vs Market: 1297 underperformed the Hong Kong Market which returned 7.5% over the past year.
Shareholder returns
| 1297 | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.8% | 4.1% | 2.2% |
| 30 Day | 16.8% | 17.8% | 8.4% |
| 90 Day | 8.1% | 43.7% | 15.6% |
| 1 Year | -21.1%-21.1% | 168.6%167.4% | 11.4%7.2% |
| 3 Year | -34.7%-36.0% | 224.9%221.3% | -3.4%-13.5% |
| 5 Year | -45.9%-47.9% | 366.2%355.5% | 65.4%37.4% |
Long-Term 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
What Type Of Shareholders Own The Most Number of Sinosoft Technology Group Limited (HKG:1297) Shares?3 weeks ago | Simply Wall St
Is Sinosoft Technology Group (HKG:1297) Using Too Much Debt?1 month ago | Simply Wall St
How Is Sinosoft Technology Group's (HKG:1297) CEO Compensated?Valuation
Is Sinosoft Technology Group undervalued compared to its fair value and its price relative to the market?
44.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 1297 (HK$1.46) is trading below our estimate of fair value (HK$2.62)
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 (5.7x) compared to the HK Software industry average (22.2x).
PE vs Market: 1297 is good value based on its PE Ratio (5.7x) compared to the Hong Kong market (11.5x).
Price to Earnings Growth Ratio
PEG Ratio: 1297 is poor value based on its PEG Ratio (1.1x)
Price to Book Ratio
PB vs Industry: 1297's PB Ratio (0.9x) is in line with the HK Software industry average.
Next Steps
Future Growth
How is Sinosoft Technology Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
5.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 1297's forecast earnings growth (5.1% per year) is above the savings rate (1.5%).
Earnings vs Market: 1297's earnings (5.1% per year) are forecast to grow slower than the Hong Kong market (21% per year).
High Growth Earnings: 1297's earnings are forecast to grow, but not significantly.
Revenue vs Market: 1297's revenue (8.5% per year) is forecast to grow slower than the Hong Kong market (14.1% per year).
High Growth Revenue: 1297's revenue (8.5% 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 (12.3%).
Next Steps
Past Performance
How has Sinosoft Technology Group performed over the past 5 years?
12.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 1297 has high quality earnings.
Growing Profit Margin: 1297's current net profit margins (38.1%) are higher than last year (33.1%).
Past Earnings Growth Analysis
Earnings Trend: 1297's earnings have grown by 12.4% per year over the past 5 years.
Accelerating Growth: 1297's earnings growth over the past year (5.2%) is below its 5-year average (12.4% per year).
Earnings vs Industry: 1297 earnings growth over the past year (5.2%) exceeded the Software industry -7.4%.
Return on Equity
High ROE: 1297's Return on Equity (15.1%) 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¥1.6B) exceed its short term liabilities (CN¥233.5M).
Long Term Liabilities: 1297's short term assets (CN¥1.6B) exceed its long term liabilities (CN¥78.3M).
Debt to Equity History and Analysis
Debt Level: 1297's debt to equity ratio (4.3%) 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 (269.9%).
Interest Coverage: 1297 earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is Sinosoft Technology Group current dividend yield, its reliability and sustainability?
2.07%
Forecast Dividend Yield
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.
Current Payout to Shareholders
Dividend Coverage: 1297 is not paying a notable dividend for the Hong Kong market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of 1297'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?
8.3yrs
Average board tenure
CEO
Yingmei Xin (53 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 ($USD432.12K) is above average for companies of similar size in the Hong Kong market ($USD305.97K).
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¥2.80m | 48.01% CN¥ 856.8m | |
| CFO & Executive Director | 2yrs | CN¥725.00k | 0.0041% CN¥ 73.0k | |
| Independent Non-Executive Director | 8.25yrs | CN¥155.00k | no data | |
| Independent Non-Executive Director | 8.25yrs | CN¥155.00k | no data | |
| Independent Non-Executive Director | 8.25yrs | CN¥103.00k | no data | |
| Non-Executive Director | 1.5yrs | no data | no data |
8.3yrs
Average Tenure
54.5yo
Average Age
Experienced Board: 1297's board of directors are considered experienced (8.3 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$1.785b
- 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, provides software development and system integration services, and sales of related computer products in the People’s Republic of China. It...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/16 10:20 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.