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1588

Chanjet Information Technology SEHK:1588 Stock Report

Last Price

HK$6.90

Market Cap

HK$2.2b

7D

-5.0%

1Y

-47.6%

Updated

25 Jun, 2022

Data

Company Financials +
1588 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance0/6
Financial Health6/6
Dividends0/6

1588 Stock Overview

Chanjet Information Technology Company Limited engages in the cloud service and software businesses in Mainland China.

Rewards

Trading at 73.7% below our estimate of its fair value

Revenue is forecast to grow 22.25% per year

Risk Analysis

No risks detected for 1588 from our risk checks.

Chanjet Information Technology Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Chanjet Information Technology
Historical stock prices
Current Share PriceHK$6.90
52 Week HighHK$14.47
52 Week LowHK$5.26
Beta-0.041
1 Month Change-9.57%
3 Month Change-11.54%
1 Year Change-47.62%
3 Year Change29.38%
5 Year Change-6.76%
Change since IPO-31.18%

Recent News & Updates

Shareholder Returns

1588HK SoftwareHK Market
7D-5.0%0.8%2.1%
1Y-47.6%-52.0%-23.3%

Return vs Industry: 1588 exceeded the Hong Kong Software industry which returned -52% over the past year.

Return vs Market: 1588 underperformed the Hong Kong Market which returned -23.3% over the past year.

Price Volatility

Is 1588's price volatile compared to industry and market?
1588 volatility
1588 Average Weekly Movement5.6%
Software Industry Average Movement8.6%
Market Average Movement7.0%
10% most volatile stocks in HK Market13.8%
10% least volatile stocks in HK Market3.3%

Stable Share Price: 1588 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 1588's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20051,289Yuchun Yanghttps://www.chanjet.com

Chanjet Information Technology Company Limited engages in the cloud service and software businesses in Mainland China. The company offers Chanjet Good Accountant, a digital intelligent finance and taxation SaaS product that integrates invoice, finance, tax, fee, bank, and filing for micro and small scale enterprises; Chanjet Easy Accounting Agent, a digital intelligent finance and taxation SaaS product for account agencies; Chanjet Reimbursement, a reimbursement SaaS product; Chanjet Good Business, a marketing-based purchase-sale-stock SaaS product for micro-commerce and retail enterprises; T+Cloud, an integrated SaaS product for small enterprises in industry; and Chanjet Intelligent+, a SaaS product for small enterprises in commerce, retail and service industries. It is also involved in the technical development, consulting, transfer, service, and training of computer software, hardware, and external devices; sale of typing paper, computer consumables, computer software, and hardware and external devices; provision of database and internet information services; agency bookkeeping; and design, manufacturing, agency, and publication of advertisements.

Chanjet Information Technology Fundamentals Summary

How do Chanjet Information Technology's earnings and revenue compare to its market cap?
1588 fundamental statistics
Market CapCN¥1.92b
Earnings (TTM)-CN¥186.30m
Revenue (TTM)CN¥590.32m

3.2x

P/S Ratio

-10.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
1588 income statement (TTM)
RevenueCN¥590.32m
Cost of RevenueCN¥179.97m
Gross ProfitCN¥410.35m
Other ExpensesCN¥596.66m
Earnings-CN¥186.30m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.57
Gross Margin69.51%
Net Profit Margin-31.56%
Debt/Equity Ratio0%

How did 1588 perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

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

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

1588 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.9x
Enterprise Value/EBITDA-2.5x
PEG Ration/a

Price to Sales Ratio vs Peers

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

1588 PS Ratio vs 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.
CompanyPSEstimated GrowthMarket Cap
Peer Average1x

Price-To-Sales vs Peers: 1588 is expensive based on its Price-To-Sales Ratio (3.2x) compared to the peer average (1x).


Price to Earnings Ratio vs Industry

How does 1588's PE Ratio compare vs other companies in the Hong Kong Software Industry?

Price-To-Sales vs Industry: 1588 is expensive based on its Price-To-Sales Ratio (3.2x) compared to the Hong Kong Software industry average (1.3x)


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 Ratio3.2x
Fair PS Ratio3.4x

Price-To-Sales vs Fair Ratio: 1588 is good value based on its Price-To-Sales Ratio (3.2x) compared to the estimated Fair Price-To-Sales Ratio (3.4x).


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$6.9) is trading below our estimate of fair value (HK$26.2)

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


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1588's PEG Ratio to determine if it is good value.


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Future Growth

How is Chanjet Information Technology forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


5.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1588 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 1588 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 1588 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 1588's revenue (22.3% per year) is forecast to grow faster than the Hong Kong market (10.2% per year).

High Growth Revenue: 1588's revenue (22.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 1588's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Chanjet Information Technology performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-30.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1588 is currently unprofitable.

Growing Profit Margin: 1588 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1588 is unprofitable, and losses have increased over the past 5 years at a rate of 30% per year.

Accelerating Growth: Unable to compare 1588's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1588 is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (-13.9%).


Return on Equity

High ROE: 1588 has a negative Return on Equity (-20.04%), as it is currently unprofitable.


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Financial Health

How is Chanjet Information Technology's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 1588's short term assets (CN¥1.4B) exceed its short term liabilities (CN¥563.8M).

Long Term Liabilities: 1588's short term assets (CN¥1.4B) exceed its long term liabilities (CN¥137.2M).


Debt to Equity History and Analysis

Debt Level: 1588 is debt free.

Reducing Debt: 1588 has not had any debt for past 5 years.

Debt Coverage: 1588 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 1588 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Chanjet Information Technology current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1588's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1588'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 1588's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1588's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: 1588 is not paying a notable dividend for the Hong Kong market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 1588 has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

4.2yrs

Average management tenure


CEO

Yuchun Yang (47 yo)

5.42yrs

Tenure

CN¥9,879,000

Compensation

Mr. Yuchun Yang has been the Chief Executive Officer and President of Chanjet Information Technology Company Limited since January 9, 2017. Mr. Yang has been Executive Director of Chanjet Information Techn...


CEO Compensation Analysis

Compensation vs Market: Yuchun's total compensation ($USD1.48M) is above average for companies of similar size in the Hong Kong market ($USD305.47K).

Compensation vs Earnings: Yuchun's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: 1588's management team is considered experienced (4.2 years average tenure).


Board Members

Experienced Board: 1588's board of directors are considered experienced (8.2 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

Chanjet Information Technology Company Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Chanjet Information Technology Company Limited
  • Ticker: 1588
  • Exchange: SEHK
  • Founded: 2005
  • Industry: Application Software
  • Sector: Software
  • Implied Market Cap: HK$2.248b
  • Shares outstanding: 325.77m
  • Website: https://www.chanjet.com

Number of Employees


Location

  • Chanjet Information Technology Company Limited
  • Building 3
  • Floor 3
  • Beijing
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/25 00:00
End of Day Share Price2022/06/24 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.