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1985

Microware Group SEHK:1985 Stock Report

Last Price

HK$0.90

Market Cap

HK$270.0m

7D

-1.1%

1Y

-16.7%

Updated

27 Jun, 2022

Data

Company Financials
1985 fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance2/6
Financial Health5/6
Dividends3/6

1985 Stock Overview

Microware Group Limited, an investment holding company, provides information technology (IT) infrastructure solutions and IT managed services for the government, educational institutions, public bodies, non-profits organizations, and commercial organizations in Hong Kong.

Microware Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Microware Group
Historical stock prices
Current Share PriceHK$0.90
52 Week HighHK$1.10
52 Week LowHK$0.77
Beta0.82
1 Month Change9.76%
3 Month Change-1.10%
1 Year Change-16.67%
3 Year Change-4.26%
5 Year Change-45.12%
Change since IPO-77.50%

Recent News & Updates

Shareholder Returns

1985HK ITHK Market
7D-1.1%1.8%2.1%
1Y-16.7%-28.7%-23.3%

Return vs Industry: 1985 exceeded the Hong Kong IT industry which returned -28.7% over the past year.

Return vs Market: 1985 exceeded the Hong Kong Market which returned -23.3% over the past year.

Price Volatility

Is 1985's price volatile compared to industry and market?
1985 volatility
1985 Average Weekly Movement3.6%
IT Industry Average Movement7.2%
Market Average Movement7.0%
10% most volatile stocks in HK Market13.8%
10% least volatile stocks in HK Market3.3%

Stable Share Price: 1985 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 1985's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2016254Ming Ho Chuhttps://www.microware1985.com

Microware Group Limited, an investment holding company, provides information technology (IT) infrastructure solutions and IT managed services for the government, educational institutions, public bodies, non-profits organizations, and commercial organizations in Hong Kong. The company offers servers, data storage, and networking equipment; and connectivity, app management, and automation solutions, as well as app and data protection solutions. It also provides email, network, and cloud security solutions, as well as client devices and secure access solutions to protect sensitive data, account information, intellectual property, and network operations; and managed services, such as service desk, technical specialist, and onboarding services.

Microware Group Fundamentals Summary

How do Microware Group's earnings and revenue compare to its market cap?
1985 fundamental statistics
Market CapHK$270.00m
Earnings (TTM)HK$31.97m
Revenue (TTM)HK$1.15b

8.4x

P/E Ratio

0.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
1985 income statement (TTM)
RevenueHK$1.15b
Cost of RevenueHK$1.02b
Gross ProfitHK$132.62m
Other ExpensesHK$100.65m
EarningsHK$31.97m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.11
Gross Margin11.54%
Net Profit Margin2.78%
Debt/Equity Ratio4.8%

How did 1985 perform over the long term?

See historical performance and comparison

Dividends

8.9%

Current Dividend Yield

59%

Payout Ratio

Does 1985 pay a reliable dividends?

See 1985 dividend history and benchmarks
When do you need to buy 1985 by to receive an upcoming dividend?
Microware Group dividend dates
Ex Dividend DateAug 26 2022
Dividend Pay DateSep 09 2022
Days until Ex dividend59 days
Days until Dividend pay date73 days

Does 1985 pay a reliable dividends?

See 1985 dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is 1985 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings 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 1985?

Other financial metrics that can be useful for relative valuation.

1985 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/Revenue0.05x
Enterprise Value/EBITDA1.3x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does 1985's PE Ratio compare to its peers?

1985 PE Ratio vs Peers
The above table shows the PE ratio for 1985 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average5.4x
2176 CCID Consulting
5.2xn/aHK$248.5m
1900 China ITS (Holdings)
2.8xn/aHK$246.4m
1037 Maxnerva Technology Services
5.2xn/aHK$210.5m
1147 Edensoft Holdings
8.3xn/aHK$188.1m
1985 Microware Group
8.4xn/aHK$270.0m

Price-To-Earnings vs Peers: 1985 is expensive based on its Price-To-Earnings Ratio (8.4x) compared to the peer average (5.4x).


Price to Earnings Ratio vs Industry

How does 1985's PE Ratio compare vs other companies in the HK IT Industry?

Price-To-Earnings vs Industry: 1985 is good value based on its Price-To-Earnings Ratio (8.4x) compared to the Hong Kong IT industry average (11.4x)


Price to Earnings Ratio vs Fair Ratio

What is 1985's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1985 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 1985's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 1985 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1985 (HK$0.9) is trading above our estimate of fair value (HK$0.86)

Significantly Below Fair Value: 1985 is trading above our estimate of fair value.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1985's PEG Ratio to determine if it is good value.


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Future Growth

How is Microware Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


27.9%

Forecasted Software industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Microware Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Discover growth companies

  • Examine Microware Group's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  • Microware Group competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Microware Group performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


12.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1985 has high quality earnings.

Growing Profit Margin: 1985's current net profit margins (2.8%) are lower than last year (4.2%).


Past Earnings Growth Analysis

Earnings Trend: 1985's earnings have grown by 12.9% per year over the past 5 years.

Accelerating Growth: 1985's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1985 had negative earnings growth (-32.5%) over the past year, making it difficult to compare to the IT industry average (-4.1%).


Return on Equity

High ROE: 1985's Return on Equity (15.2%) is considered low.


Discover strong past performing companies

Financial Health

How is Microware Group's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 1985's short term assets (HK$522.5M) exceed its short term liabilities (HK$325.0M).

Long Term Liabilities: 1985's short term assets (HK$522.5M) exceed its long term liabilities (HK$7.4M).


Debt to Equity History and Analysis

Debt Level: 1985 has more cash than its total debt.

Reducing Debt: Insufficient data to determine if 1985's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1985's debt is well covered by operating cash flow (115.9%).

Interest Coverage: 1985's interest payments on its debt are well covered by EBIT (72.2x coverage).


Balance Sheet


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Dividend

What is Microware Group current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


8.89%

Current Dividend Yield

Upcoming Dividend Payment

TodayJun 27 2022Ex Dividend DateAug 26 2022Dividend Pay DateSep 09 202214 days from Ex DividendBuy in the next 59 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: 1985's dividend (8.89%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.75%).

High Dividend: 1985's dividend (8.89%) is in the top 25% of dividend payers in the Hong Kong market (7.9%)


Stability and Growth of Payments

Stable Dividend: 1985 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1985's dividend payments have increased, but the company has only paid a dividend for 5 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (59.1%), 1985's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (257.2%), 1985's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

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

6.1yrs

Average management tenure


CEO

Ming Ho Chu (52 yo)

6.08yrs

Tenure

HK$4,689,000

Compensation

Mr. Ming Ho Chu has been Chairman, Chief Executive Officer and Executive Director at Microware Group Limited since May 25, 2016. Since January 2006, Mr. Chu is the Managing Director of Microware Ltd. and h...


CEO Compensation Analysis

Compensation vs Market: Ming Ho's total compensation ($USD597.38K) is above average for companies of similar size in the Hong Kong market ($USD233.02K).

Compensation vs Earnings: Ming Ho's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 1985's management team is seasoned and experienced (6.1 years average tenure).


Board Members

Experienced Board: 1985's board of directors are considered experienced (5.3 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Microware Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Microware Group Limited
  • Ticker: 1985
  • Exchange: SEHK
  • Founded: 2016
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Implied Market Cap: HK$270.000m
  • Shares outstanding: 300.00m
  • Website: https://www.microware1985.com

Number of Employees


Location

  • Microware Group Limited
  • Century Centre
  • 1st Floor
  • Kwun Tong
  • Kowloon
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.