SEHK:1297

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Sinosoft Technology Group

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


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

1297IndustryMarket
7 Day5.8%4.1%2.2%
30 Day16.8%17.8%8.4%
90 Day8.1%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

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

NamePositionTenureCompensationOwnership
Yingmei Xin
Chairlady & CEOno dataCN¥2.80m48.01%
CN¥ 856.8m
Hui Su
CFO & Executive Director2yrsCN¥725.00k0.0041%
CN¥ 73.0k
Teh Ming Kwauk
Independent Non-Executive Director8.25yrsCN¥155.00kno data
Choon Kiat Kang
Independent Non-Executive Director8.25yrsCN¥155.00kno data
Ping Zong
Independent Non-Executive Director8.25yrsCN¥103.00kno data
Geng Ren
Non-Executive Director1.5yrsno datano 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1297SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2013
79SDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 10:20
End of Day Share Price2021/01/15 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.