SEHK:354

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Chinasoft International

Executive Summary

Chinasoft International Limited, together with its subsidiaries, develops and provides information technology (IT) solutions, IT outsourcing, and training services. More Details


Snowflake Analysis

Excellent balance sheet with moderate growth potential.

Share Price & News

How has Chinasoft International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 354 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 354's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

2.6%

354

-3.1%

HK IT

2.2%

HK Market


1 Year Return

60.3%

354

12.5%

HK IT

7.5%

HK Market

Return vs Industry: 354 exceeded the Hong Kong IT industry which returned 12.5% over the past year.

Return vs Market: 354 exceeded the Hong Kong Market which returned 7.5% over the past year.


Shareholder returns

354IndustryMarket
7 Day2.6%-3.1%2.2%
30 Day10.5%5.5%9.4%
90 Day38.2%10.8%15.8%
1 Year61.1%60.3%14.7%12.5%11.8%7.5%
3 Year53.9%51.8%-10.8%-15.3%-3.5%-13.6%
5 Year225.4%220.1%41.4%26.5%65.0%37.0%

Long-Term Price Volatility Vs. Market

How volatile is Chinasoft International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Chinasoft International undervalued compared to its fair value and its price relative to the market?

21.45x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 354 (HK$8.29) is trading above our estimate of fair value (HK$4.45)

Significantly Below Fair Value: 354 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 354 is poor value based on its PE Ratio (21.5x) compared to the HK IT industry average (13.4x).

PE vs Market: 354 is poor value based on its PE Ratio (21.5x) compared to the Hong Kong market (11.5x).


Price to Earnings Growth Ratio

PEG Ratio: 354 is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: 354 is overvalued based on its PB Ratio (2.4x) compared to the HK IT industry average (1.2x).


Next Steps

Future Growth

How is Chinasoft International forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

20.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 354's forecast earnings growth (20% per year) is above the savings rate (1.5%).

Earnings vs Market: 354's earnings (20% per year) are forecast to grow slower than the Hong Kong market (21% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 354's revenue (17.1% per year) is forecast to grow faster than the Hong Kong market (14.1% per year).

High Growth Revenue: 354's revenue (17.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 354's Return on Equity is forecast to be low in 3 years time (14.5%).


Next Steps

Past Performance

How has Chinasoft International performed over the past 5 years?

21.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 354 has high quality earnings.

Growing Profit Margin: 354's current net profit margins (6.3%) are lower than last year (6.4%).


Past Earnings Growth Analysis

Earnings Trend: 354's earnings have grown significantly by 21.7% per year over the past 5 years.

Accelerating Growth: 354's earnings growth over the past year (10.2%) is below its 5-year average (21.7% per year).

Earnings vs Industry: 354 earnings growth over the past year (10.2%) exceeded the IT industry -7.6%.


Return on Equity

High ROE: 354's Return on Equity (11%) is considered low.


Next Steps

Financial Health

How is Chinasoft International's financial position?


Financial Position Analysis

Short Term Liabilities: 354's short term assets (CN¥9.2B) exceed its short term liabilities (CN¥2.0B).

Long Term Liabilities: 354's short term assets (CN¥9.2B) exceed its long term liabilities (CN¥2.5B).


Debt to Equity History and Analysis

Debt Level: 354's debt to equity ratio (42%) is considered high.

Reducing Debt: 354's debt to equity ratio has reduced from 49.2% to 42% over the past 5 years.

Debt Coverage: 354's debt is well covered by operating cash flow (33.1%).

Interest Coverage: 354's interest payments on its debt are well covered by EBIT (4.9x coverage).


Balance Sheet


Next Steps

Dividend

What is Chinasoft International current dividend yield, its reliability and sustainability?

0.26%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 354's dividend (0.26%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.13%).

High Dividend: 354's dividend (0.26%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.66%).


Stability and Growth of Payments

Stable Dividend: 354 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 354 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 354 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 354's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

8.8yrs

Average board tenure


CEO

Henry Chen (57 yo)

no data

Tenure

CN¥16,776,000

Compensation

Dr. Yuhong Chen, also known as Henry, PhD serves as the Chief Executive Officer of Chinasoft International Limited. Dr. Chen is responsible for the overall business development. Dr. Chen served as Managing...


CEO Compensation Analysis

Compensation vs Market: Henry's total compensation ($USD2.59M) is above average for companies of similar size in the Hong Kong market ($USD697.58K).

Compensation vs Earnings: Henry's compensation has increased by more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Yuhong Chen
Chairman of the Board & CEOno dataCN¥16.78m9.75%
CN¥ 2.2b
Zhenming Tang
Senior VP & Executive Director15.17yrsCN¥12.40m0.43%
CN¥ 98.1m
Zhijie Zheng
Independent Non Executive Director17.75yrsCN¥106.00kno data
Ya-Qin Zhang
Non-Executive Director12.08yrsCN¥264.00k0.015%
CN¥ 3.3m
Liangyu Gao
Non-Executive Director3.5yrsCN¥264.00kno data
Guanrong Lai
Independent Non-Executive Director5.58yrsCN¥264.00kno data
Lai Lan Mo
Independent Non-Executive Director2.42yrsCN¥264.00kno data
Gavriella Schuster
Non-Executive Director2.33yrsCN¥686.00kno data

8.8yrs

Average Tenure

56yo

Average Age

Experienced Board: 354's board of directors are considered experienced (8.8 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 been diluted in the past year, with total shares outstanding growing by 13.8%.


Top Shareholders

Company Information

Chinasoft International Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Chinasoft International Limited
  • Ticker: 354
  • Exchange: SEHK
  • Founded: 2000
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: HK$22.638b
  • Shares outstanding: 2.73b
  • Website: https://www.chinasofti.com

Number of Employees


Location

  • Chinasoft International Limited
  • Raycom Infotech Park Tower C
  • 12th Floor, North Wing
  • Beijing
  • Beijing Province
  • 100190
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
354SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2003
CFTL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2003
354SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2003
354SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2003

Biography

Chinasoft International Limited, together with its subsidiaries, develops and provides information technology (IT) solutions, IT outsourcing, and training services. It operates through Technical Profession...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 10:28
End of Day Share Price2021/01/15 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.