Sinosoft Technology Group Limited

SEHK:1297 Stock Report

Market Cap: HK$397.3m

Sinosoft Technology Group Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

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: 1297 (HK$0.33) is trading below our estimate of fair value (HK$1.62)

Significantly Below Fair Value: 1297 is trading below fair value by more than 20%.

Key Valuation Metric

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

Key metric: As 1297 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 1297. This is calculated by dividing 1297's market cap by their current revenue.
What is 1297's PS Ratio?
PS Ratio0.7x
SalesCN¥511.85m
Market CapCN¥365.51m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for 1297 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.6x
2167 TI Cloud
0.8xn/aHK$408.5m
2392 Xuan Wu Cloud Technology Holdings
0.3xn/aHK$463.0m
1522 BII Railway Transportation Technology Holdings
0.3xn/aHK$545.3m
8353 Anacle Systems
1.1xn/aHK$183.1m
1297 Sinosoft Technology Group
0.7xn/aHK$397.3m

Price-To-Sales vs Peers: 1297 is expensive based on its Price-To-Sales Ratio (0.7x) compared to the peer average (0.7x).

Price to Sales Ratio vs Industry

How does 1297's PS Ratio compare vs other companies in the HK Software Industry?

3 CompaniesPrice / SalesEstimated GrowthMarket Cap
6638 OneConnect Financial Technology
0.3x-6.0%US$105.17m
1933 OneForce Holdings
0.2xn/aUS$10.75m
8060 Global Link Communications Holdings
0.2xn/aUS$3.52m
No more companies available in this PS range
1297 0.7xIndustry Avg. 1.7xNo. of Companies6PS01.22.43.64.86+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 1297 is good value based on its Price-To-Sales Ratio (0.7x) compared to the Hong Kong Software industry average (1.4x).

Price to Sales Ratio vs Fair Ratio

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

1297 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.7x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate 1297's Price-To-Sales Fair Ratio 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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