Executive Summary
Chanjet Information Technology Company Limited provides cloud services and software to micro and small scale enterprises in Mainland China. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with limited growth.
Share Price & News
How has Chanjet Information Technology's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 1588 is more volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 11% a week.
Volatility Over Time: 1588's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of Hong Kong stocks.
Market Performance
7 Day Return
42.0%
1588
12.3%
HK Software
5.1%
HK Market
1 Year Return
180.7%
1588
221.7%
HK Software
17.5%
HK Market
Return vs Industry: 1588 underperformed the Hong Kong Software industry which returned 221.7% over the past year.
Return vs Market: 1588 exceeded the Hong Kong Market which returned 17.5% over the past year.
Shareholder returns
| 1588 | Industry | Market | |
|---|---|---|---|
| 7 Day | 42.0% | 12.3% | 5.1% |
| 30 Day | 105.1% | 38.2% | 15.0% |
| 90 Day | 64.0% | 69.8% | 19.7% |
| 1 Year | 194.4%180.7% | 223.2%221.7% | 22.1%17.5% |
| 3 Year | 135.1%111.2% | 261.9%257.9% | -1.4%-11.8% |
| 5 Year | 81.8%63.3% | 432.5%420.5% | 73.0%43.6% |
Long-Term Price Volatility Vs. Market
How volatile is Chanjet Information Technology's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Something To Consider Before Buying Chanjet Information Technology Company Limited (HKG:1588) For The 3.6% Dividend1 month ago | Simply Wall St
Introducing Chanjet Information Technology (HKG:1588), A Stock That Climbed 54% In The Last Year1 month ago | Simply Wall St
A Look At The Fair Value Of Chanjet Information Technology Company Limited (HKG:1588)Valuation
Is Chanjet Information Technology undervalued compared to its fair value and its price relative to the market?
227.31x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 1588 (HK$22.6) is trading above our estimate of fair value (HK$10.55)
Significantly Below Fair Value: 1588 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 1588 is poor value based on its PE Ratio (227.3x) compared to the HK Software industry average (29.6x).
PE vs Market: 1588 is poor value based on its PE Ratio (227.3x) compared to the Hong Kong market (12x).
Price to Earnings Growth Ratio
PEG Ratio: 1588 is poor value based on its PEG Ratio (21.1x)
Price to Book Ratio
PB vs Industry: 1588 is overvalued based on its PB Ratio (3.3x) compared to the HK Software industry average (0.9x).
Next Steps
Future Growth
How is Chanjet Information Technology forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
10.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 1588's forecast earnings growth (10.8% per year) is above the savings rate (1.5%).
Earnings vs Market: 1588's earnings (10.8% per year) are forecast to grow slower than the Hong Kong market (21.6% per year).
High Growth Earnings: 1588's earnings are forecast to grow, but not significantly.
Revenue vs Market: 1588's revenue (19.7% per year) is forecast to grow faster than the Hong Kong market (14.4% per year).
High Growth Revenue: 1588's revenue (19.7% per year) is forecast to grow slower 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
Next Steps
Past Performance
How has Chanjet Information Technology performed over the past 5 years?
36.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 1588 has a large one-off loss of CN¥16.5M impacting its June 30 2020 financial results.
Growing Profit Margin: 1588's current net profit margins (4.4%) are lower than last year (25%).
Past Earnings Growth Analysis
Earnings Trend: 1588's earnings have grown significantly by 36% per year over the past 5 years.
Accelerating Growth: 1588's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 1588 had negative earnings growth (-83.9%) over the past year, making it difficult to compare to the Software industry average (-7.4%).
Return on Equity
High ROE: 1588's Return on Equity (1.4%) is considered low.
Next Steps
Financial Health
How is Chanjet Information Technology's financial position?
Financial Position Analysis
Short Term Liabilities: 1588's short term assets (CN¥1.5B) exceed its short term liabilities (CN¥395.2M).
Long Term Liabilities: 1588's short term assets (CN¥1.5B) exceed its long term liabilities (CN¥2.9M).
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
Next Steps
Dividend
What is Chanjet Information Technology current dividend yield, its reliability and sustainability?
2.12%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 1588's dividend (2.12%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.06%).
High Dividend: 1588's dividend (2.12%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.48%).
Stability and Growth of Payments
Stable Dividend: 1588 has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: 1588's dividend payments have increased, but the company has only paid a dividend for 6 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (482.6%), 1588's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.4yrs
Average management tenure
CEO
Yuchun Yang (46 yo)
4yrs
Tenure
CN¥1,960,000
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 ($USD303.33K) is about average for companies of similar size in the Hong Kong market ($USD403.02K).
Compensation vs Earnings: Yuchun's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Executive Director | 4yrs | CN¥1.96m | no data | |
| CFO & Senior VP | 2.67yrs | no data | no data | |
| Senior Vice President | 9.33yrs | no data | no data | |
| Senior Vice President | 2.83yrs | no data | no data | |
| Senior Vice President | 1.83yrs | no data | no data | |
| Senior Vice President | 0.83yr | no data | no data | |
| VP & Joint Company Secretary | 9.33yrs | no data | no data | |
| Joint Company Secretary | 9.17yrs | no data | no data |
3.4yrs
Average Tenure
45.5yo
Average Age
Experienced Management: 1588's management team is considered experienced (3.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Executive Director | 4yrs | CN¥1.96m | no data | |
| Chairman of the Supervisory Committee | no data | no data | no data | |
| Non-Executive Director | 10.83yrs | no data | no data | |
| Chairman | 10.83yrs | no data | no data | |
| Independent Non-Executive Director | 3.33yrs | CN¥150.00k | no data | |
| Independent Supervisor | 6.75yrs | CN¥60.00k | no data | |
| Independent Non-Executive Director | 9.33yrs | CN¥150.00k | no data | |
| Independent Non-Executive Director | 9.33yrs | CN¥150.00k | no data | |
| Independent Supervisor | 6.75yrs | CN¥60.00k | no data | |
| Shareholder Representative Supervisor | 0.33yr | no data | no data | |
| Employee Representative Supervisor | 2.75yrs | no data | no data | |
| Employee Representative Supervisor | 0.33yr | no data | no data |
6.8yrs
Average Tenure
55.5yo
Average Age
Experienced Board: 1588's board of directors are considered experienced (6.8 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 company bio, 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
- Market Cap: HK$4.995b
- Shares outstanding: 217.18m
- Website: https://www.chanjet.com
Number of Employees
Location
- Chanjet Information Technology Company Limited
- Building 3
- Floor 3
- Beijing
- Beijing Province
- China
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 1588 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Foreign Shares Foreign Listed | HK | HKD | Jun 2014 |
| C7D | DB (Deutsche Boerse AG) | Yes | Foreign Shares Foreign Listed | DE | EUR | Jun 2014 |
Biography
Chanjet Information Technology Company Limited provides cloud services and software to micro and small scale enterprises in Mainland China. The company offers cloud services, including Chanjet Good Account...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/22 10:26 |
| End of Day Share Price | 2021/01/22 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.