Chanjet Information Technology Company Limited

SEHK:1588 Stock Report

Market Cap: HK$1.8b

Chanjet Information Technology Valuation

Is 1588 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 1588 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1588 (HK$5.43) is trading below our estimate of fair value (HK$30.36)

Significantly Below Fair Value: 1588 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1588?

Key metric: As 1588 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 1588. This is calculated by dividing 1588's market cap by their current revenue.
What is 1588's PS Ratio?
PS Ratio1.9x
SalesCN¥877.93m
Market CapCN¥1.66b

Price to Sales Ratio vs Peers

How does 1588's PS Ratio compare to its peers?

The above table shows the PS ratio for 1588 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2x
2567 Qiniu
1.1xn/aHK$1.7b
418 Founder Holdings
1.1xn/aHK$1.1b
9669 Beisen Holding
3.3x15.0%HK$3.2b
2121 AInnovation Technology Group
2.5x13.2%HK$3.7b
1588 Chanjet Information Technology
1.9x15.4%HK$1.8b

Price-To-Sales vs Peers: 1588 is good value based on its Price-To-Sales Ratio (1.9x) compared to the peer average (2x).

Price to Sales Ratio vs Industry

How does 1588's PS Ratio compare vs other companies in the HK Software Industry?

7 CompaniesPrice / SalesEstimated GrowthMarket Cap
6638 OneConnect Financial Technology
0.2x-20.1%US$97.80m
1522 BII Railway Transportation Technology Holdings
0.3xn/aUS$72.82m
2392 Xuan Wu Cloud Technology Holdings
0.3xn/aUS$62.36m
1933 OneForce Holdings
0.2xn/aUS$10.00m
1588 1.9xIndustry Avg. 1.7xNo. of Companies7PS01.63.24.86.48+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 1588 is expensive based on its Price-To-Sales Ratio (1.9x) compared to the Hong Kong Software industry average (1.7x).

Price to Sales Ratio vs Fair Ratio

What is 1588'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.

1588 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.9x
Fair PS Ratio1.8x

Price-To-Sales vs Fair Ratio: 1588 is expensive based on its Price-To-Sales Ratio (1.9x) compared to the estimated Fair Price-To-Sales Ratio (1.8x).

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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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 06:51
End of Day Share Price 2024/12/20 00:00
Earnings2024/06/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Chanjet Information Technology Company Limited is covered by 4 analysts. 1 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Liping ZhaoChina International Capital Corporation Limited
Edison LeeJefferies LLC
Pui Hung HoKGI Securities Co. Ltd.