Valuation Update With 7 Day Price Move • Aug 06
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to HK$3.35, the stock trades at a trailing P/E ratio of 29.9x. Average trailing P/E is 25x in the IT industry in Hong Kong. Total returns to shareholders of 197% over the past three years. New Risk • Jul 30
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: HK$777.6m (US$99.1m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (20% average weekly change). Earnings have declined by 20% per year over the past 5 years. Minor Risks Significant insider selling over the past 3 months (HK$22m sold). Market cap is less than US$100m (HK$777.6m market cap, or US$99.1m). Buy Or Sell Opportunity • Jul 17
Now 28% undervalued Over the last 90 days, the stock has risen 108% to HK$2.95. The fair value is estimated to be HK$4.07, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.1% over the last 3 years. Earnings per share has declined by 33%. Buy Or Sell Opportunity • Jul 02
Now 23% undervalued Over the last 90 days, the stock has risen 172% to HK$3.40. The fair value is estimated to be HK$4.41, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.1% over the last 3 years. Earnings per share has declined by 33%. Announcement • Jul 01
Microware Group Limited, Annual General Meeting, Aug 27, 2026 Microware Group Limited, Annual General Meeting, Aug 27, 2026. Announcement • Jun 19
Microware Group Limited to Report Fiscal Year 2026 Results on Jun 30, 2026 Microware Group Limited announced that they will report fiscal year 2026 results at 4:00 PM, China Standard Time on Jun 30, 2026 New Risk • Jun 10
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Hong Kong stocks, typically moving 13% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 23% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (13% average weekly change). Market cap is less than US$100m (HK$634.5m market cap, or US$81.0m). Reported Earnings • Jan 02
First half 2026 earnings released: EPS: HK$0.008 (vs HK$0.045 in 1H 2025) First half 2026 results: EPS: HK$0.008 (down from HK$0.045 in 1H 2025). Revenue: HK$658.8m (down 8.6% from 1H 2025). Net income: HK$2.43m (down 80% from 1H 2025). Profit margin: 0.4% (down from 1.7% in 1H 2025). Over the last 3 years on average, earnings per share has fallen by 38% per year but the company’s share price has increased by 15% per year, which means it is well ahead of earnings. Reported Earnings • Nov 29
First half 2026 earnings released: EPS: HK$0.008 (vs HK$0.045 in 1H 2025) First half 2026 results: EPS: HK$0.008 (down from HK$0.045 in 1H 2025). Revenue: HK$658.8m (down 8.6% from 1H 2025). Net income: HK$2.43m (down 80% from 1H 2025). Profit margin: 0.4% (down from 1.7% in 1H 2025). Over the last 3 years on average, earnings per share has fallen by 38% per year but the company’s share price has increased by 12% per year, which means it is well ahead of earnings. Announcement • Nov 24
Microware Group Limited Provides Earning Guidance for the Year for the Six Months Ended September 30, 2025 Microware Group Limited provided earning guidance for the year for the six months ended September 30, 2025. For the period, group is expected to record a profit attributable to owners of approximately HKD 4.0 million for the six months ended 30 September 2025 as compared to the profit attributable to owners of the Company of approximately HKD 12.2 million for the corresponding period in 2024 (representing a decrease of approximately 67.2%). Such decrease was mainly due to the increase in operating expenses as a result of the business development in Chinese Mainland. Announcement • Nov 17
Microware Group Limited to Report First Half, 2026 Results on Nov 27, 2025 Microware Group Limited announced that they will report first half, 2026 results on Nov 27, 2025 Announcement • Aug 29
Microware Group Limited Approves Special Dividend, Payable on 19 September 2025 Microware Group Limited announced that at the AGM held on 29 August 2025, approved special dividend of HKD 0.10 per ordinary share, payable on 19 September 2025 to those Shareholders whose names appear on the register of members of the Company after the close of business on 8 September 2025, being the record date for determination of entitlements to the Special Dividend. For the purpose of ascertaining the Shareholders' entitlement to the Special Dividend, the register of members of the Company will be closed from 4 September 2025 to 8 September 2025, both days inclusive, during which no transfer of Shares will be registered. In order to be entitled to the Special Dividend, completed transfer forms accompanied by the relevant share certificates must be lodged with the Company's Hong Kong branch share registrar on 3 September 2025. Upcoming Dividend • Aug 26
Upcoming dividend of HK$0.10 per share Eligible shareholders must have bought the stock before 02 September 2025. Payment date: 19 September 2025. The company last paid an ordinary dividend in August 2017. The average dividend yield among industry peers is 1.5%. Announcement • Aug 14
Microware Group Limited Proposes Special Dividend Microware Group Limited announced that at the AGM to be held on 29 August 2025, proposed special dividend of HKD 0.10 per ordinary share. Valuation Update With 7 Day Price Move • Jul 17
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to HK$1.48, the stock trades at a trailing P/E ratio of 49x. Average trailing P/E is 23x in the IT industry in Hong Kong. Total returns to shareholders of 122% over the past three years. Reported Earnings • Jul 09
Full year 2025 earnings released: EPS: HK$0.03 (vs HK$0.12 in FY 2024) Full year 2025 results: EPS: HK$0.03 (down from HK$0.12 in FY 2024). Revenue: HK$1.49b (up 21% from FY 2024). Net income: HK$8.16m (down 78% from FY 2024). Profit margin: 0.5% (down from 2.9% in FY 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has increased by 23% per year, which means it is well ahead of earnings. Announcement • Jul 08
Microware Group Limited, Annual General Meeting, Aug 22, 2025 Microware Group Limited, Annual General Meeting, Aug 22, 2025. New Risk • Jun 29
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended September 2024. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 5.1% per year over the past 5 years. High level of non-cash earnings (61% accrual ratio). Minor Risks Latest financial reports are more than 6 months old (reported September 2024 fiscal period end). Market cap is less than US$100m (HK$421.2m market cap, or US$53.7m). Announcement • Jun 20
Microware Group Limited Appoints Lan Jia as a Member of the Nomination Committee, Effective June 12, 2025 The board of directors of Microware Group Limited announced that Ms. Lan Jia ("Ms. Lan"), an independent non-executive Director, has been appointed as a member of the nomination committee of the Company with effect from June 12, 2025. Other positions of Ms. Lan at the Board and the relevant Board committees remain unchanged. The Nomination Committee shall consist of four members, namely Mr. Wang Guagbo, Mr. Dai Bin, Mr. Xu Jianwen and Ms. Lan Jia, with Mr. Wang Guangbo serving as the chairman of the Nomination Committee. Valuation Update With 7 Day Price Move • Jun 18
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to HK$1.63, the stock trades at a trailing P/E ratio of 11.9x. Average trailing P/E is 15x in the IT industry in Hong Kong. Total returns to shareholders of 134% over the past three years. Announcement • Jun 16
Microware Group Limited to Report Fiscal Year 2025 Results on Jun 30, 2025 Microware Group Limited announced that they will report fiscal year 2025 results at 4:00 PM, China Standard Time on Jun 30, 2025 Valuation Update With 7 Day Price Move • May 22
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to HK$1.60, the stock trades at a trailing P/E ratio of 11.7x. Average trailing P/E is 13x in the IT industry in Hong Kong. Total returns to shareholders of 152% over the past three years. Announcement • Apr 16
Microware Group Limited Provides Group Earnings Guidance for the Year Ended 31 March 2025 Microware Group Limited provided group earnings guidance for the year ended 31 March 2025. For the year, the company is expected that the Group will record a profit attributable to owners of approximately HKD 18.7 million as compared to the profit attributable to owners of the Company of approximately HKD 36.2 million for the corresponding period in 2024 (a decrease of approximately 51.7%). Such decrease was mainly due to the share-based compensation expenses of approximately HKD 38.4 million primarily attributable to the share award scheme adopted by the Company on 16 January 2024, certain terms of which were amended on 23 December 2024. Announcement • Mar 22
Wang Guangbo proposed to acquire 69.66 % stake in Microware Group Limited (SEHK:1985) for approximately HKD 280 million. Wang Guangbo proposed to acquire 69.66 % stake in Microware Group Limited (SEHK:1985) for approximately HKD 280 million on March 20, 2025. The offer price is HKD1.36 per share. The offer is voluntary and conditional, meaning it will only proceed if certain conditions are met. The shares being offered must be free of any legal claims or debts. The offer will only go through if the Offeror ends up owning more than 50% of the company’s shares. If this condition isn't met by the closing date, the offer will lapse. The Offeror plans to finance the acquisition using a combination of its internal resources and a loan facility. Specifically, HKD35 million will come from the Offeror's own funds, while HKD192 million will be provided through a loan facility. The loan facility is granted by Astrum Capital, Gransing Securities, and Patrons Securities. These institutions are acting as lenders to the Offeror, providing the necessary funds to cover the maximum consideration payable if the offer is fully accepted. Certain shareholders, holding approximately 14.14% of the company's shares, have agreed not to accept the offer. This reduces the number of shares the Offeror needs to finance. Astrum Capital Management Limited and Red Sun Capital Limited act as financial advisor for Wang Guangbo. New Risk • Dec 02
New minor risk - Insider selling There has been significant insider selling in the company's shares over the past 3 months. Total value of shares sold: HK$13m This is considered a minor risk. There are several reasons why an insider may be selling, including to cover a tax obligation or pay for some other expense. However, we generally consider it a negative if insiders have been selling, especially if they do so below the current price. It implies that they considered a lower price to be reasonable. This is a weak signal, but if there is a pattern of unexplained selling, it can be a sign the insider believes the company's stock is overpriced. Note: We only include open market transactions and private dispositions of directly owned stock by individuals, not by corporations or trusts. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 5.1% per year over the past 5 years. Minor Risks Significant insider selling over the past 3 months (HK$13m sold). Market cap is less than US$100m (HK$330.0m market cap, or US$42.4m). Reported Earnings • Nov 28
First half 2025 earnings released: EPS: HK$0.045 (vs HK$0.038 in 1H 2024) First half 2025 results: EPS: HK$0.045 (up from HK$0.038 in 1H 2024). Revenue: HK$720.7m (up 45% from 1H 2024). Net income: HK$12.2m (up 5.7% from 1H 2024). Profit margin: 1.7% (down from 2.3% in 1H 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has increased by 5% per year. Announcement • Nov 27
Microware Group Limited Resolves Not to Declare Interim Dividend for the Six Months Ended 30 September 2024 The Board of Microware Group Limited resolved not to declared interim dividend for the six months ended 30 September 2024 (six months ended 30 September 2023: HKD 0.02 per share). Announcement • Nov 14
Microware Group Limited to Report First Half, 2025 Results on Nov 25, 2024 Microware Group Limited announced that they will report first half, 2025 results on Nov 25, 2024 Announcement • Oct 10
Microware Group Limited Announces Resignation of Zhang Ting as Executive Director The board of directors of Microware Group Limited announced that, with effect from 10 October 2024, Mr. Zhang Ting ("Mr. Zhang") has resigned as an executive Director due to job allocation and remains as a member of the senior management of the Group. Mr. Zhang will devote more time on human resources and administration of the Group, and will be responsible for, among other things, recruiting and staffing, strategic workforce planning, and policy development and implementation of human resources programs. Reported Earnings • Jul 20
Full year 2024 earnings released: EPS: HK$0.12 (vs HK$0.11 in FY 2023) Full year 2024 results: EPS: HK$0.12 (up from HK$0.11 in FY 2023). Revenue: HK$1.23b (up 5.8% from FY 2023). Net income: HK$36.2m (up 9.2% from FY 2023). Profit margin: 2.9% (up from 2.8% in FY 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Announcement • Jul 15
Microware Group Limited Resolves Not to Recommend the Payment of A Final Dividend for the Year Ended 31 March 2024 The Board of Microware Group Limited resolved not to recommend the payment of a final dividend for the year ended 31 March 2024 to the Shareholders (Previous Year: HKD 0.025 per Share). Announcement • Jun 21
Microware Group Limited, Annual General Meeting, Aug 15, 2024 Microware Group Limited, Annual General Meeting, Aug 15, 2024. Reported Earnings • Jun 21
Full year 2024 earnings released: EPS: HK$0.12 (vs HK$0.11 in FY 2023) Full year 2024 results: EPS: HK$0.12 (up from HK$0.11 in FY 2023). Revenue: HK$1.23b (up 5.8% from FY 2023). Net income: HK$36.2m (up 9.2% from FY 2023). Profit margin: 2.9% (up from 2.8% in FY 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Announcement • Jun 08
Microware Group Limited to Report Fiscal Year 2024 Results on Jun 20, 2024 Microware Group Limited announced that they will report fiscal year 2024 results on Jun 20, 2024 Valuation Update With 7 Day Price Move • May 10
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to HK$1.02, the stock trades at a trailing P/E ratio of 10.8x. Average trailing P/E is 14x in the IT industry in Hong Kong. Total returns to shareholders of 63% over the past three years. Board Change • Mar 01
High number of new directors There are 6 new directors who have joined the board in the last 3 years. Independent Non-Executive Director Jia Lan was the last director to join the board, commencing their role in 2024. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Announcement • Feb 28
Microware Group Limited Announces Board Changes Microware Group Limited announced that Mr. Wang Zhi () ("Mr. Wang") has been appointed as non-executive Director with effect from 26 February 2024. Mr. Wang, aged 44, is a PhD holder from Wuhan University, a postdoctoral fellow at Beijing Normal University, visiting scholar at the University of Hannover, Germany, and a professor at the Northeastern University in Shenyang, Liaoning, China.From October 2008 to June 2013, Mr. Wang served as a researcher at the Beijing Normal University in the field of geography. Since June 2008, Mr. Wang has been a professor at the School of Resources and Civil Engineering of the Northeastern University. Mr. Wang is also currently serving part-time as a director of the China Association of Remote Sensing Application, a part-time professor at the School of Environment and Spatial Informatics of the China University of Mining and Technology, the editorial board of the Geography and Geo-Information Science and the liaison officer of the Earthquake and Fire Disaster Assessment Working Group of the International Intergovernmental Organization for the Coordination of Earth Observations (GEO). Mr. Wang completed his undergraduate double degree in mechanical design manufacturing and automation and economics at the Wuhan University in June 2001. He then obtained a master's degree in measuring and testing technologies and instruments and a doctoral degree in photogrammetry and remote sensing at the Wuhan University in September 2004 and June 2008 respectively. From September 2007 to August 2008, he attended the Leibniz Universität Hannover in Germany as a PhD researcher in the field of photogrammetry and remote sensing. The Board announced that Ms. Lan Jia () ("Ms. Lan") has been appointed as independent non-executive Director and chairlady of the audit committee of the Company (the "AC Chairlady") with effect from 26 February 2024. Ms. Lan, aged 53, has extensive experience in the field of finance and auditing. Ms. Lan joined ADICON Holdings Limited, in October 2018 to serve as the vice president and compliance officer. In July 2021, she was promoted to serve as the senior vice president, chief executive officer and compliance officer at ADICON, where she is primarily responsible for overviewing the internal audit department, the administrative commerce department, the environmental, health and safety department, the legal affairs and compliance department, and the office of the president. From March 2017 to October 2018, she was the vice president of Meinian Onehealth Healthcare Holdings Co. Ltd. She served as the chief financial officer of Menian Onehealth from October 2015 to March 2017. From April 2009 to January 2013, Ms. Lan was the person-in-charge of internal audit at Zhejiang Jingxing Paper Joint Stock Co. Ltd. From May 2002 to June 2008, Ms. Lan served as the audit manager of Ernst & Young. From November 1996 to April 2002, she was a senior auditor at Dahua Certified Public Accountants Co. Ltd. Ms. Lan completed her undergraduate degree in accounting at the Shanghai University of Finance and Economics in July 1991. She then obtained a master's degree in business administration at the National University of Singapore in June 2020. Ms. Lan obtained the qualification of a certified public accountant issued by the Ministry of Finance of the People's Republic of China in 2001. Mr. Lu Junbo, the independent non-executive Director, has resigned as member of the audit committee and nomination committee of the Company with effect from 26 February 2024. Board Change • Feb 01
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Executive Director Ting Zhang was the last director to join the board, commencing their role in 2024. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Jan 29
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to HK$1.05, the stock trades at a trailing P/E ratio of 11.1x. Average trailing P/E is 11x in the IT industry in Hong Kong. Total returns to shareholders of 103% over the past three years. Announcement • Jan 10
Microware Group Limited Appoints Zhang Ting as Executive Director with Effect from 10 January 2024 Microware Group Limited announced that Mr. Zhang Ting has been appointed as executive Director with effect from 10 January 2024. The biographical details of Mr. Zhang are set out below. Mr. Zhang, aged 52, has extensive management experience in the field of information technology. He joined Shanghai Weiye Information Technology Co. Ltd. as the general manager since 2011 and joined Shanghai Weiye Investment Group Co. Ltd. as the vice president since 2015, where he is primarily responsible for formulating the group's development strategies and operational plans in accordance with the overall corporate strategy, and overseeing the daily operations of the group. Announcement • Dec 06
Microware Group Limited Announces Resignation of Chu Ming Ho as Chief Executive Officer The board of directors of Microware Group Limited announced that, with effect from 5 December 2023: Mr. Chu Ming Ho ("Mr. Chu") has resigned as chief executive officer of the Company due to re-allocation of work and re-designation within the Group; Following the resignation of Mr. Chu, the Company does not have a position of chief executive officer. Mr. Wang Guangbo, executive Director and chairman of the Board, together with Mr. Huang Tianlei, executive Director, will assume the duties and responsibilities of the chief executive officer of the Company in the overall management, strategic planning and the day-to-day business operation of the Group. Given their extensive experience and knowledge in the information technology industry, the Board believes that Mr. Wang Guangbo and Mr. Huang Tianlei will provide a broader perspective on strategic matters and enable efficient decision-making to meet the dynamic needs of the Group's business. Announcement • Dec 05
Microware Group Limited Announces Management Changes The board of directors of Microware Group Limited announced that, with effect from 5 December 2023: Mr. Chu Ming Ho ("Mr. Chu") has resigned as executive Director of the Company due to re-allocation of work and re-designation within the Group; Mr. Yang Peter Shun Tsing ("Mr. Yang") has resigned as executive Director due to his plan for retirement; Mr. Cheng Wing Fai ("Mr. Cheng") has resigned as executive Director due to re-allocation of work and re-designation within the Group; and Mr. Au Man Wah ("Mr. Au") has resigned as executive Director due to re-allocation of work and re-designation within the Group. Mr. Chu, Mr. Cheng and Mr. Au will remain as members of management the Group and will focus on the business of the Company's subsidiaries. The Board announced that Mr. Xu Jianwen () ("Mr. Xu") has been appointed as independent non-executive Director and member of each of the audit committee (the "Audit Committee"), remuneration committee (the "Remuneration Committee") and nomination committee of the Company, both with effect from 5 December 2023. Mr. Xu, aged 43, has extensive work experience in the financial industry. He has worked in several financial institutions, including China Merchants Securities (HK) Co., Limited, China Securities (International) Finance Holding Company Limited, Southwest Securities (HK) Financial Management Limited and Dongxing Securities (Hong Kong) Financial Holdings Limited, at which he was principally involved in the management in the aspects of legal, compliance and risk control. Currently, Mr. Xu serves as a consultant of China Goldlink Capital Group Limited, at which he previously held the positions of director and chief executive officer. Since 1 February 2022, Mr. Xu has been an independent non-executive director of Beijing Gas Blue Sky Holdings Limited, a company whose shares are listed on the Stock Exchange. From 11 May 2017 to 1 December 2021, Mr. Xu was a non-executive director of Sansheng Holdings (Group) Co. Ltd., a company whose shares are listed on the Stock Exchange. Mr. Xu obtained a Bachelor's Degree in Laws in June 2005 from Sun Yat-Sen University and a Master's Degree of Common Law in November 2007 from University of Hong Kong. Mr. Xu was awarded the Legal Professional Qualification Certificate in the People's Republic of China in February 2009. The Board further announces that upon his resignation as executive Director, Mr. Chu will cease to be an authorised representative of the Company under Rule 3.05 of the Listing Rules (the "Authorised Representative"), and Mr. Huang Tianlei will be appointed as the Authorised Representative in place of Mr. Chu with effect from 5 December 2023. Reported Earnings • Nov 29
First half 2024 earnings released: EPS: HK$0.038 (vs HK$0.054 in 1H 2023) First half 2024 results: EPS: HK$0.038 (down from HK$0.054 in 1H 2023). Revenue: HK$498.6m (down 12% from 1H 2023). Net income: HK$11.5m (down 29% from 1H 2023). Profit margin: 2.3% (down from 2.9% in 1H 2023). Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Announcement • Nov 29
Microware Group Limited Announces Interim Dividend for the Six Months Ended 30 September 2023, Payable on 29 December 2023 Microware Group Limited announced Interim dividend of HKD 0.02 per share for the six months Ended 30 September 2023. Ex-dividend date is 13 December 2023. Record date is 15 December 2023. Payment date is 29 December 2023. Announcement • Nov 17
Microware Group Limited to Report First Half, 2024 Results on Nov 27, 2023 Microware Group Limited announced that they will report first half, 2024 results on Nov 27, 2023 Announcement • Sep 27
Microware Group Limited Announces Board Changes Microware Group Limited announced that Mr. Wan Yiu Hon ("Mr. Wan") has resigned as non-executive Director with effect from 26 September 2023 in order to focus on taking care of his family. Mr. Wan has confirmed that he has no disagreement with the Board and there is no matter in relation to his resignation that needs to be brought to the attention of the shareholders of the Company or the Stock Exchange. The Board announced that Mr. Huang Tianlei ("Mr. Huang") has been appointed as executive Director with effect from 26 September 2023. The biographical details of Mr. Huang are set out below. Mr. Huang, aged 40, has over 18 years of experience in sales and marketing. From November 2005 to May 2007, he served as the Dazhong district sales manager at Ningbo Zhongjia Technology & Trading Co., Ltd, an indirect subsidiary of Gigabyte Technology Co. Ltd., a Taiwan-based company principally engaged in the production, processing and sales of information technology (IT) products. Since 2007, he has served as the deputy general manager at (Beijing Mengchuang Technology Co. Ltd.), a company based in Beijing, China, that focuses on the distribution of computer accessories, peripherals and other hardware products, where Mr. Huang oversees the company's daily operation management and the sales and marketing of storage products. Mr. Huang graduated from The Open University of China in January 2022 with a degree majoring in administration. Since September 2022, he has been pursuing his master's degree in business administration at the Hong Kong Asia Business College in Hong Kong. Announcement • Sep 13
Microware Group Limited Announces Board Changes The board of directors of Microware Group Limited announced that due to job reallocation and pursuant to code provision C.2.1 of the Corporate Governance Code as set out in Part 2 of Appendix 14 to the Rules Governing the Listing of Securities (the Listing Rules) on The Stock Exchange of Hong Kong Limited (the Stock Exchange), which states that the roles of chairman and chief executive officer should be separate and should not be performed by the same individual, with effect from 11 September 2023, Mr. Chu Ming Ho (Mr. Chu) will retire as chairman of the Board (the Chairman) and chairman of the nomination committee of the Company (the "NC Chairman"). He will continue to be the executive Director and chief executive officer of the Company after his retirement as the Chairman and NC Chairman. Mr. Wang Guangbo (Mr. Wang), executive Director and vice chairman of the Company, has been appointed as the Chairman and NC Chairman with effect from 11 September 2023. There is no additional remuneration for acting as Chairman and NC Chairman. The position of vice chairman will cease to exist with effect from 11 September 2023. Mr. Wang, aged 44, was appointed as an executive Director and the vice chairman of the Board on 6 July 2023. Mr. Wang currently serves as the chairman of the board of directors of Shanghai Weiye Investment Group Co. Ltd. and the vice chairman of the Shanghai Heilongjiang Chamber of Commerce. Mr. Wang has been in the field of information technology (IT) marketing since 2002 and has over 20 years of experience in the IT industry. Mr. Wang obtained a master's degree in business administration in 2008, and he has been pursuing an executive master's degree in business administration from the Business School of the National University of Singapore since 2020. Valuation Update With 7 Day Price Move • Sep 12
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to HK$1.01, the stock trades at a trailing P/E ratio of 9.1x. Average trailing P/E is 11x in the IT industry in Hong Kong. Total returns to shareholders of 60% over the past three years. Recent Insider Transactions • Aug 24
Executive Director recently sold HK$62k worth of stock On the 22nd of August, Man Wah Au sold around 50k shares on-market at roughly HK$1.24 per share. This transaction amounted to 56% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of HK$110k more than they bought in the last 12 months. Announcement • Aug 17
Microware Group Limited Approves Final Dividend for the Year Ended 31 March 2023 Microware Group Limited announced that at the AGM was held on 16 August 2023, the company approved the final dividend of HKD 0.025 per Share for the year ended 31 March 2023. Upcoming Dividend • Aug 11
Upcoming dividend of HK$0.025 per share at 5.5% yield Eligible shareholders must have bought the stock before 18 August 2023. Payment date: 01 September 2023. Payout ratio is a comfortable 63% and this is well supported by cash flows. Trailing yield: 5.5%. Lower than top quartile of Hong Kong dividend payers (7.6%). Higher than average of industry peers (3.7%). New Risk • Jul 21
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 22% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Significant insider selling over the past 3 months (HK$73m sold). Market cap is less than US$100m (HK$321.0m market cap, or US$41.1m). Valuation Update With 7 Day Price Move • Jul 20
Investor sentiment improves as stock rises 27% After last week's 27% share price gain to HK$1.09, the stock trades at a trailing P/E ratio of 9.9x. Average trailing P/E is 12x in the IT industry in Hong Kong. Total returns to shareholders of 20% over the past three years. Announcement • Jul 07
Microware Group Limited Announces Board Appointments The board of directors of Microware Group Limited announce that (i) Mr. Wang Guangbo has been appointed as an executive Director and the vice chairman of the Board (the "Vice Chairman"); and (ii) Mr. Lu Junbo ("Mr. Lu") has been appointed as an independent non-executive Director and a member of the nomination committee of the Company (the "Nomination Committee"), both with effect from 6 July 2023. Mr. Wang Guangbo, aged 44, was appointed as an executive Director and the vice chairman of the Board with effect from 6 July 2023. Mr. Wang currently serves as the chairman of the board of directors of Shanghai Weiye Investment Group Co. Ltd. and the vice chairman of the Shanghai Heilongjiang Chamber of Commerce. Mr. Wang has been in the field of information technology ("IT") marketing since 2002 and has over 20 years of experience in the IT industry. Mr. Wang has obtained a master's degree in business administration in 2008. Furthermore, he is pursuing an executive master's degree in business administration from the Business School of the National University of Singapore since 2020. Mr. Lu Junbo, aged 40, was appointed as an independent non-executive Director and a member of the Nomination Committee with effect from 6 July 2023. Since February 2020, Mr. Lu has been serving as the vice president of Guangdong Sunwah Technology Investment Limited and the director and general manager of Guizhou Xinhua Technology Industry Development Co. Ltd. From 16 April 2020 to 27 July 2021, he was an independent non-executive director of CBK Holdings Limited (stock code: 8428), a company listed on the GEM board of the Stock Exchange. From October 2017 to February 2020, Mr. Lu served as the director and general manager of Guiyang Ruishu Investment Management Co. Ltd., an investment consultant of Guiyang Comprehensive Bonded Zone Financial Investment Holding Co. Ltd. at the Guiyang Comprehensive Bonded Zone, Guizhou Province, and a financial consultant of Guangdong Xinhua South Intelligent Technology Co. Ltd., a member of Sunwah Tech Group From 2015 to 2017, Mr. Lu served as a senior partner and an executive director of Shanghai Haiding Asset Management Co. Ltd. From 2012 to 2015, he served as an assistant to the chairman and the director of the innovation business department of Shanghai Sameway Investment Management Co. Ltd. Mr. Lu graduated from the School of Management of the University of Leicester in 2006 with a master's degree in management. He has obtained the securities practitioner qualification certificate issued by the Securities Association of China in 2019 and the fund practitioner qualification certificate issued by the Asset Management Association of China in 2016. Mr. Lu was also awarded the board secretary certificate by the Shanghai Stock Exchange in 2018. Upcoming Dividend • Jul 03
Upcoming dividend of HK$0.08 per share at 7.4% yield Eligible shareholders must have bought the stock before 10 July 2023. Payment date: 26 July 2023. Trailing yield: 7.4%. Lower than top quartile of Hong Kong dividend payers (7.6%). Higher than average of industry peers (3.5%). Reported Earnings • Jun 20
Full year 2023 earnings released: EPS: HK$0.11 (vs HK$0.11 in FY 2022) Full year 2023 results: EPS: HK$0.11 (up from HK$0.11 in FY 2022). Revenue: HK$1.17b (up 1.6% from FY 2022). Net income: HK$33.2m (up 3.8% from FY 2022). Profit margin: 2.8% (in line with FY 2022). Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. New Risk • Jun 16
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended September 2022. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Minor Risks Latest financial reports are more than 6 months old (reported September 2022 fiscal period end). Dividend is not well covered by cash flows (130% cash payout ratio). Market cap is less than US$100m (HK$258.0m market cap, or US$33.0m). Announcement • Jun 09
Microware Group Limited to Report Fiscal Year 2023 Results on Jun 19, 2023 Microware Group Limited announced that they will report fiscal year 2023 results on Jun 19, 2023 Upcoming Dividend • Dec 09
Upcoming dividend of HK$0.045 per share Eligible shareholders must have bought the stock before 16 December 2022. Payment date: 30 December 2022. Payout ratio is on the higher end at 89%, however this is supported by cash flows. Trailing yield: 12%. Within top quartile of Hong Kong dividend payers (8.6%). Higher than average of industry peers (1.8%). Reported Earnings • Nov 30
First half 2023 earnings released First half 2023 results: Revenue: HK$569.0m (up 5.1% from 1H 2022). Net income: HK$16.3m (up 27% from 1H 2022). Profit margin: 2.9% (up from 2.4% in 1H 2022). The increase in margin was driven by higher revenue. Announcement • Nov 30
Microware Group Limited Declares Dividend for the Six Months Ended 30 September 2022, Payable on 30 December 2022 Microware Group Limited declared dividend of HKD 0.045 per share for the six months Ended 30 September 2022. Scheduled dates are as follows: Ex-dividend date 16 December 2022, Record date 20 December 2022 and Payment date 30 December 2022. Announcement • Nov 19
Microware Group Limited to Report First Half, 2023 Results on Nov 29, 2022 Microware Group Limited announced that they will report first half, 2023 results on Nov 29, 2022 Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 5 non-independent directors. Independent Non-Executive Director Richard Li was the last independent director to join the board, commencing their role in 2017. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Aug 25
Microware Group Limited Approves Final Dividend for the Year Ended 31 March 2022, Payable on or About 9 September 2022 Microware Group Limited at the AGM held on 24 August 2022, approved he proposal for the payment of the 2022 Final Dividend of HKD 0.06 per Share for the year ended 31 March 2022 to Shareholders whose names appear on the register of members of the Company on 30 August 2022 was approved at the AGM. The relevant cheques in respect of the 2022 Final Dividend will be posted by the Company's branch share registrar in Hong Kong by ordinary mail to Shareholders who are entitled to receive the 2022 Final Dividend on or about 9 September 2022. Upcoming Dividend • Aug 19
Upcoming dividend of HK$0.06 per share Eligible shareholders must have bought the stock before 26 August 2022. Payment date: 09 September 2022. Payout ratio is on the higher end at 94%, however this is supported by cash flows. Trailing yield: 11%. Within top quartile of Hong Kong dividend payers (8.3%). Higher than average of industry peers (1.7%). Announcement • Jul 16
Microware Group Limited, Annual General Meeting, Aug 24, 2022 Microware Group Limited, Annual General Meeting, Aug 24, 2022. Announcement • Jul 01
Microware Group Limited Appoints Au Man Wah as Executive Director Microware Group Limited announced at Mr. Au Man Wah has been appointed as an executive Director with effect from 1 July 2022.Mr. Au, aged 58, has been appointed as an executive Director with effect from 1 July 2022. Mr. Au joined the Group on 1 June 2011 as the director of technical services and outsourcing of Microware Ltd., where he was primarily responsible for maintenance and service sales of the Group. He has over 21 years of sales and marketing experience. Mr. Au received a bachelor's degree in business administration from Fu Jen Catholic University in Taiwan in June 1988. He has also received a master's degree in information systems from the Hong Kong Polytechnic University in November 2010 through distance learning. Mr. Au has entered into a service contract with the Company for a term of three years commencing from 1 July 2022, and is subject to retirement by rotation and re-election at the annual general meetings of the Company in accordance with the memorandum and articles of association of the Company. Pursuant to the service contract, Mr. Au will be entitled to receive an annual remuneration (including salary, bonus and contributions to retirement benefits scheme) of approximately HKD 93,600 for his role as executive Director, which is determined by the Board upon recommendation from the Remuneration Committee with reference to his qualification, level of duties and responsibilities undertaken in the Company and the prevailing market conditions. Reported Earnings • Jun 26
Full year 2022 earnings released: EPS: HK$0.11 (vs HK$0.16 in FY 2021) Full year 2022 results: EPS: HK$0.11 (down from HK$0.16 in FY 2021). Revenue: HK$1.15b (up 3.1% from FY 2021). Net income: HK$32.0m (down 33% from FY 2021). Profit margin: 2.8% (down from 4.2% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Announcement • Jun 25
Microware Group Limited Recommends Final Dividend for the Year Ended 31 March 2022, Payable on 9 September 2022 Microware Group Limited's Board recommended the payment of a final dividend of HKD 0.06 per Share for the Year ended 31 March 2022, subject to the approval by the Shareholders at the AGM to be held on 24 August 2022, the 2022 Final Dividend will be paid on or about 9 September 2022 to Shareholders whose names appear on the register of members of the Company on 30 August 2022. Announcement • Jun 15
Microware Group Limited to Report Fiscal Year 2022 Results on Jun 24, 2022 Microware Group Limited announced that they will report fiscal year 2022 results on Jun 24, 2022 Announcement • Jun 04
Microware Group Limited Provides Group Earnings Guidance for the Year Ended 31 March 2022 Microware Group Limited provided Group earnings guidance for the year ended 31 March 2022. For the year, it is expected that the Group will record a profit attributable to owners for the year ended 31 March 2022 of not more than approximately HKD 33.0 million as compared to the profit attributable to owners of the Company of approximately HKD 47.3 million for the corresponding period in 2021 (a decrease of approximately 30.2%). Such decrease was mainly because there were no government subsidies received by the Group during the year ended 31 March 2022 under the Employment Support Scheme from the Government's Anti-epidemic Fund established by the Hong Kong Government as a result of the outbreak of the coronavirus disease (previous period: approximately HKD 13.4 million). Board Change • Apr 27
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was not an independent director. The company's board is composed of: 1 new director. 6 experienced directors. No highly experienced directors. 3 independent directors (4 non-independent directors). Independent Non-Executive Director Richard Li was the last independent director to join the board, commencing their role in 2017. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Upcoming Dividend • Dec 08
Upcoming dividend of HK$0.04 per share Eligible shareholders must have bought the stock before 15 December 2021. Payment date: 30 December 2021. Payout ratio is a comfortable 70% and this is well supported by cash flows. Trailing yield: 7.8%. Within top quartile of Hong Kong dividend payers (7.2%). Higher than average of industry peers (1.2%). Reported Earnings • Nov 29
First half 2022 earnings: Revenues and EPS in line with analyst expectations First half 2022 results: EPS: HK$0.043 (down from HK$0.073 in 1H 2021). Revenue: HK$541.3m (down 6.3% from 1H 2021). Net income: HK$12.8m (down 41% from 1H 2021). Profit margin: 2.4% (down from 3.8% in 1H 2021). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Upcoming Dividend • Aug 19
Upcoming dividend of HK$0.05 per share Eligible shareholders must have bought the stock before 26 August 2021. Payment date: 10 September 2021. Trailing yield: 16%. Within top quartile of Hong Kong dividend payers (6.5%). Higher than average of industry peers (1.2%). Reported Earnings • Jul 24
Full year 2021 earnings released: EPS HK$0.16 (vs HK$0.14 in FY 2020) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2021 results: Revenue: HK$1.11b (down 18% from FY 2020). Net income: HK$47.3m (up 17% from FY 2020). Profit margin: 4.2% (up from 3.0% in FY 2020). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Announcement • Jul 24
Microware Group Limited Declares Special Dividend for the Year 2021, Payable on or About 30 July 2021 Microware Group Limited declared a special dividend of HKD 0.05 per Share for the year 2021 to the Shareholders (Previous Year: HKD 0.07 per Share). The 2021 Special Dividend will be paid on or about 30 July 2021 to Shareholders whose names appear on the register of members of the Company on 19 July 2021. Upcoming Dividend • Jul 08
Upcoming dividend of HK$0.05 per share Eligible shareholders must have bought the stock before 15 July 2021. Payment date: 30 July 2021. Trailing yield: 14%. Within top quartile of Hong Kong dividend payers (6.2%). Higher than average of industry peers (1.1%). Announcement • Jun 26
Microware Group Limited Declares Special Dividend for the Year Ended March 31, 2021, Payable on or About July 30, 2021 Microware Group Limited declared a special dividend of HKD 0.05 per Share for the Year to the Shareholders. The 2021 Special Dividend will be paid on or about July 30, 2021 to Shareholders whose names appear on the register of members of the Company on July 19, 2021.