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Chinasoft International

SEHK:354
Snowflake Description

Solid track record with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
354
SEHK
HK$10B
Market Cap
  1. Home
  2. HK
  3. Software
Company description

Chinasoft International Limited, together with its subsidiaries, develops and provides information technology (IT) solutions, IT outsourcing and emerging, and training services. The last earnings update was 175 days ago. More info.


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354 Share Price and Events
7 Day Returns
2.2%
SEHK:354
0.7%
HK IT
-0.1%
HK Market
1 Year Returns
-23.1%
SEHK:354
-14.9%
HK IT
-12.6%
HK Market
354 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Chinasoft International (354) 2.2% 8.8% -7.3% -23.1% 50.2% 77.5%
HK IT 0.7% 9.5% 5.8% -14.9% 8.6% 8.7%
HK Market -0.1% 3.7% 4.1% -12.6% 32.1% 13%
1 Year Return vs Industry and Market
  • 354 underperformed the IT industry which returned -14.9% over the past year.
  • 354 underperformed the Market in Hong Kong which returned -12.6% over the past year.
Price Volatility
354
Industry
5yr Volatility vs Market
Related Companies

Sorry, no analysis for Chinasoft International's competitors could be found in our database.

Value

 Is Chinasoft International undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Chinasoft International to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Chinasoft International.

SEHK:354 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 12 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.1%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:354
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 8%
IT Unlevered Beta Simply Wall St/ S&P Global 0.98
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.977 (1 + (1- 25%) (21.69%))
1.136
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.14
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.136 * 8%)
11.09%

Discounted Cash Flow Calculation for SEHK:354 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Chinasoft International is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:354 DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (CNY, Millions) 598.84 608.33 717.83 839.86 974.24
Source Analyst x3 Analyst x3 Est @ 18%, capped from 24.27% Est @ 17%, capped from 24.27% Est @ 16%, capped from 24.27%
Present Value
Discounted (@ 11.09%)
539.08 492.98 523.66 551.54 575.94
Present value of next 5 years cash flows CN¥2,683.21
SEHK:354 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= CN¥974.24 × (1 + 2%) ÷ (11.09% – 2%)
CN¥10,941.39
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= CN¥10,941.39 ÷ (1 + 11.09%)5
CN¥6,468.22
SEHK:354 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= CN¥2,683.21 + CN¥6,468.22
CN¥9,151.43
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥9,151.43 / 2,448.94
CN¥3.74
SEHK:354 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:354)
1.159
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥3.74 x 1.159
HK$4.33
Value per share (HKD) From above. HK$4.33
Current discount Discount to share price of HK$4.19
= -1 x (HK$4.19 - HK$4.33) / HK$4.33
3.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Chinasoft International is available for.
Intrinsic value
3%
Share price is HK$4.19 vs Future cash flow value of HK$4.33
Current Discount Checks
For Chinasoft International to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Chinasoft International's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Chinasoft International's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Chinasoft International's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Chinasoft International's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:354 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-06-30) in CNY CN¥0.28
SEHK:354 Share Price ** SEHK (2019-02-18) in HKD HK$4.19
SEHK:354 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.862 CN¥3.61
Hong Kong IT Industry PE Ratio Median Figure of 25 Publicly-Listed IT Companies 12.2x
Hong Kong Market PE Ratio Median Figure of 1,481 Publicly-Listed Companies 10.52x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Chinasoft International.

SEHK:354 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:354 Share Price ÷ EPS (both in CNY)

= 3.61 ÷ 0.28

12.82x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Chinasoft International is overvalued based on earnings compared to the HK IT industry average.
  • Chinasoft International is overvalued based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Chinasoft International's expected growth come at a high price?
Raw Data
SEHK:354 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 12.82x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
18.3%per year
Hong Kong IT Industry PEG Ratio Median Figure of 7 Publicly-Listed IT Companies 0.66x
Hong Kong Market PEG Ratio Median Figure of 465 Publicly-Listed Companies 0.75x

*Line of best fit is calculated by linear regression .

SEHK:354 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 12.82x ÷ 18.3%

0.7x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Chinasoft International is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Chinasoft International's assets?
Raw Data
SEHK:354 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-06-30) in CNY CN¥2.30
SEHK:354 Share Price * SEHK (2019-02-18) in HKD HK$4.19
SEHK:354 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.862 CN¥3.61
Hong Kong IT Industry PB Ratio Median Figure of 33 Publicly-Listed IT Companies 1.43x
Hong Kong Market PB Ratio Median Figure of 2,118 Publicly-Listed Companies 0.96x
SEHK:354 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:354 Share Price ÷ Book Value per Share (both in CNY)

= 3.61 ÷ 2.30

1.57x

* Primary Listing of Chinasoft International.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Chinasoft International is overvalued based on assets compared to the HK IT industry average.
X
Value checks
We assess Chinasoft International's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Chinasoft International has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Chinasoft International expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
18.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Chinasoft International expected to grow at an attractive rate?
  • Chinasoft International's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • Chinasoft International's earnings growth is expected to exceed the Hong Kong market average.
  • Chinasoft International's revenue growth is expected to exceed the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:354 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:354 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts 18.3%
SEHK:354 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 15.1%
Hong Kong IT Industry Earnings Growth Rate Market Cap Weighted Average 14%
Hong Kong IT Industry Revenue Growth Rate Market Cap Weighted Average 10.8%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.8%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:354 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:354 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 14,307 800 1,022 11
2019-12-31 12,419 594 855 12
2018-12-31 10,715 780 716 11
SEHK:354 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2018-06-30 9,912 81 679
2018-03-31 9,578 207 622
2017-12-31 9,244 332 566
2017-09-30 8,644 283 508
2017-06-30 8,043 235 451
2017-03-31 7,413 263 447
2016-12-31 6,783 292 442
2016-09-30 6,204 231 409
2016-06-30 5,625 170 377
2016-03-31 5,377 215 328
2015-12-31 5,129 260 280
2015-09-30 5,005 145 259

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Chinasoft International's earnings are expected to grow by 18.3% yearly, however this is not considered high growth (20% yearly).
  • Chinasoft International's revenue is expected to grow by 15.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:354 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from Chinasoft International Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:354 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 0.37 0.50 0.30 8.00
2019-12-31 0.31 0.36 0.27 9.00
2018-12-31 0.26 0.28 0.24 8.00
SEHK:354 Past Financials Data
Date (Data in CNY Millions) EPS *
2018-06-30 0.28
2018-03-31 0.26
2017-12-31 0.24
2017-09-30 0.22
2017-06-30 0.20
2017-03-31 0.20
2016-12-31 0.20
2016-09-30 0.19
2016-06-30 0.18
2016-03-31 0.16
2015-12-31 0.14
2015-09-30 0.13

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Chinasoft International is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Chinasoft International's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Chinasoft International has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Chinasoft International performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Chinasoft International's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Chinasoft International has delivered over 20% year on year earnings growth in the past 5 years.
  • Chinasoft International's 1-year earnings growth exceeds its 5-year average (50.4% vs 31.5%)
  • Chinasoft International's earnings growth has exceeded the HK IT industry average in the past year (50.4% vs 32.5%).
Earnings and Revenue History
Chinasoft International's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Chinasoft International Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:354 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-06-30 9,912.48 678.86 1,586.91 567.31
2018-03-31 9,578.08 622.21 1,534.41 567.31
2017-12-31 9,243.68 565.57 1,481.92 567.31
2017-09-30 8,643.58 508.44 1,409.69 456.29
2017-06-30 8,043.48 451.31 1,337.46 345.27
2017-03-31 7,413.42 446.70 1,190.53 345.27
2016-12-31 6,783.37 442.08 1,043.59 345.27
2016-09-30 6,204.34 409.35 987.62 270.29
2016-06-30 5,625.31 376.62 931.64 195.32
2016-03-31 5,377.21 328.34 899.77 195.32
2015-12-31 5,129.11 280.06 867.90 195.32
2015-09-30 5,004.71 259.25 913.69 129.74
2015-06-30 4,880.31 238.44 959.47 64.16
2015-03-31 4,654.76 219.24 935.43 64.16
2014-12-31 4,429.20 200.04 911.39 64.16
2014-09-30 4,100.58 188.65 855.77 58.16
2014-06-30 3,771.95 177.26 800.15 52.16
2014-03-31 3,488.97 162.78 755.99 52.16
2013-12-31 3,205.99 148.30 711.82 52.16
2013-09-30 3,086.16 147.04 699.13 54.61
2013-06-30 2,966.34 145.77 686.45 57.06
2013-03-31 2,867.25 139.48 658.74 57.06
2012-12-31 2,768.17 133.19 631.03 57.06
2012-09-30 2,619.92 148.42 574.03 51.52
2012-06-30 2,471.66 163.65 517.03 45.99
2012-03-31 2,357.71 137.12 496.29 45.99

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Chinasoft International has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Chinasoft International used its assets more efficiently than the HK IT industry average last year based on Return on Assets.
  • Chinasoft International has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Chinasoft International's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Chinasoft International has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Chinasoft International's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Chinasoft International's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Chinasoft International is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Chinasoft International's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Chinasoft International's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 3.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Chinasoft International Company Filings, last reported 7 months ago.

SEHK:354 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2018-06-30 5,639.82 1,855.12 1,393.16
2018-03-31 5,639.82 1,855.12 1,393.16
2017-12-31 5,229.97 1,698.55 2,141.01
2017-09-30 5,229.97 1,698.55 2,141.01
2017-06-30 4,774.27 1,536.57 1,306.92
2017-03-31 4,774.27 1,536.57 1,306.92
2016-12-31 4,332.64 1,399.23 1,573.19
2016-09-30 4,332.64 1,399.23 1,573.19
2016-06-30 3,720.10 1,844.45 972.31
2016-03-31 3,720.10 1,844.45 972.31
2015-12-31 3,486.27 1,684.80 1,459.55
2015-09-30 3,486.27 1,684.80 1,459.55
2015-06-30 3,244.58 1,596.26 809.34
2015-03-31 3,244.58 1,596.26 809.34
2014-12-31 2,701.03 1,495.96 1,018.77
2014-09-30 2,701.03 1,495.96 1,018.77
2014-06-30 2,556.18 1,213.73 524.51
2014-03-31 2,556.18 1,213.73 524.51
2013-12-31 2,441.20 1,187.83 1,116.04
2013-09-30 2,441.20 1,187.83 1,116.04
2013-06-30 2,236.90 695.16 666.20
2013-03-31 2,236.90 695.16 666.20
2012-12-31 2,062.28 536.58 893.32
2012-09-30 2,062.28 536.58 893.32
2012-06-30 1,926.96 422.29 609.81
2012-03-31 1,926.96 422.29 609.81
  • Chinasoft International's level of debt (32.9%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (31.3% vs 32.9% today).
  • Debt is not well covered by operating cash flow (4.4%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.7x coverage).
X
Financial health checks
We assess Chinasoft International's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Chinasoft International has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.4%
Current annual income from Chinasoft International dividends. Estimated to be 0.7% next year.
If you bought HK$2,000 of Chinasoft International shares you are expected to receive HK$8 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Chinasoft International's pays a lower dividend yield than the bottom 25% of dividend payers in Hong Kong (2.01%).
  • Chinasoft International's dividend is below the markets top 25% of dividend payers in Hong Kong (5.54%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:354 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
Hong Kong IT Industry Average Dividend Yield Market Cap Weighted Average of 11 Stocks 1.7%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 916 Stocks 3.6%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:354 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 0.03 6.00
2019-12-31 0.02 7.00
2018-12-31 0.02 8.00
SEHK:354 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2018-03-26 0.014 0.354
2017-03-27 0.010 0.256
2009-08-11 0.000 0.000
2009-08-07 0.000 0.000
2009-04-30 0.000 0.000
2009-02-19 0.004 0.897

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Chinasoft International is not paying a notable dividend for Hong Kong, therefore no need to check if the payments are stable.
  • Chinasoft International is not paying a notable dividend for Hong Kong, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Chinasoft International's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Chinasoft International's dividends as it is not paying a notable one for Hong Kong.
Future Payout to shareholders
  • No need to calculate the sustainability of Chinasoft International's dividends in 3 years as they are not expected to pay a notable one for Hong Kong.
X
Income/ dividend checks
We assess Chinasoft International's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Chinasoft International afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Chinasoft International has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Chinasoft International's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Henry Chen
COMPENSATION CN¥4,278,000
AGE 55
CEO Bio

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 Director and Compliance Officer of Chinasoft International Limited. Dr. Chen has over ten years experience in software development and corporate management. From June 1991 to October 1996, he was the Deputy General Manager of China Great Wall Computer Software Co., Ltd. He served as Vice President of CS&S since 2000 and was a Manager of the research department from October 1996 to April 2000. He has been the Chairman of the Board at Chinasoft International Limited since April 20, 2000 and also serves as its Executive Director. Dr. Chen served as a Director of Chinasoft Cyber Resources Software Technology (Tianjin) Company Limited from 1999 to March 2002. Dr. Chen was a Member of Advisory Board at China Soft Capital Group. He holds a Doctorate degree in Optics from Beijing Polytechnic University in 1991.

CEO Compensation
  • Henry's compensation has been consistent with company performance over the past year.
  • Henry's remuneration is about average for companies of similar size in Hong Kong.
Management Team

Henry Chen

TITLE
Chairman of the Board & CEO
COMPENSATION
CN¥4M
AGE
55

Donald Tang

TITLE
Senior VP & Executive Director
COMPENSATION
CN¥3M
AGE
55

Florence Leong

TITLE
Deputy CFO
AGE
39
TENURE
1.8 yrs

Simon Chung

TITLE
Chief Operating Officer
AGE
57

Simon Zhang

TITLE
Chief Human Resources Officer & Senior VP
AGE
55

Hui Wang

TITLE
Chief Strategic Officer and Senior Vice President
COMPENSATION
CN¥1M
AGE
45
Board of Directors Tenure

Average tenure and age of the Chinasoft International board of directors in years:

6.9
Average Tenure
54
Average Age
  • The tenure for the Chinasoft International board of directors is about average.
Board of Directors

Donald Tang

TITLE
Senior VP & Executive Director
COMPENSATION
CN¥3M
AGE
55
TENURE
13.3 yrs

Guanrong Lai

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥260K
AGE
55
TENURE
3.7 yrs

Henry Chen

TITLE
Chairman of the Board & CEO
COMPENSATION
CN¥4M
AGE
55
TENURE
18.8 yrs

Lai Mo

TITLE
Independent Non-Executive Director
AGE
59
TENURE
0.5 yrs

Ya-Qin Zhang

TITLE
Non-Executive Director
COMPENSATION
CN¥799K
AGE
52
TENURE
10.2 yrs

Zhi Jie Zeng

TITLE
Independent Non Executive Director
COMPENSATION
CN¥103K
AGE
48
TENURE
15.8 yrs

Liangyu Gao

TITLE
Non-Executive Director
AGE
53
TENURE
1.6 yrs

Gavriella Schuster

TITLE
Non-Executive Director
AGE
52
TENURE
0.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
18. Jan 19 Sell JPMorgan Chase & Co, Brokerage and Securities Investments Company 15. Jan 19 15. Jan 19 -20,943,670 HK$3.62 HK$-75,759,587
17. Jan 19 Buy JPMorgan Chase & Co, Brokerage and Securities Investments Company 14. Jan 19 14. Jan 19 28,265,201 HK$3.54 HK$100,140,809
25. Oct 18 Buy UBS Asset Management Company 22. Oct 18 22. Oct 18 10,290,000 HK$4.59 HK$47,187,864
14. Sep 18 Buy Yuhong Chen Individual 11. Sep 18 11. Sep 18 1,500,000 HK$4.84 HK$7,259,999
22. Aug 18 Buy UBS Asset Management Company 17. Aug 18 17. Aug 18 2,740,000 HK$5.48 HK$15,003,976
07. Aug 18 Sell UBS Asset Management Company 02. Aug 18 02. Aug 18 -480,000 HK$6.09 HK$-2,921,422
02. May 18 Buy UBS Asset Management Company 26. Apr 18 26. Apr 18 7,332,000 HK$5.51 HK$40,408,093
26. Apr 18 Buy Csi Profit Share Scheme Spc - Phase One Sp Company 26. Apr 18 26. Apr 18 134,630,690 HK$5.57 HK$749,892,466
25. Apr 18 Sell Harvest Fund Management Co. Ltd. Company 23. Apr 18 23. Apr 18 -2,212,000 HK$6.31 HK$-13,963,474
13. Apr 18 Buy Harvest Fund Management Co. Ltd. Company 12. Apr 18 12. Apr 18 1,000,000 HK$7.40 HK$7,401,002
X
Management checks
We assess Chinasoft International's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Chinasoft International has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Chinasoft International Limited (HKG:354): Commentary On Fundamentals

Help shape the future of investing tools and you could win a $250 gift card! … Chinasoft International Limited (HKG:354) is a company with exceptional fundamental characteristics. … is a company with great financial health as well as a

Simply Wall St -

Is Chinasoft International Limited's (HKG:354) Growth Strong Enough To Justify Its January Share Price?

Chinasoft International Limited (HKG:354) closed yesterday at HK$3.98, which left some investors asking whether the high earnings potential can still be justified at this price. … See our latest analysis for Chinasoft International? … The excitement around Chinasoft International's growth potential is not unfounded

Simply Wall St -

Is Chinasoft International Limited's (HKG:354) ROE Of 12% Impressive?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … That means that for every HK$1 worth of shareholders' equity, it generated HK$0.12 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Should You Be Tempted To Sell Chinasoft International Limited (HKG:354) Because Of Its P/E Ratio?

We'll look at Chinasoft International Limited's (HKG:354) P/E ratio and reflect on what it tells us about the company's share price. … Chinasoft International has a price to earnings ratio of 11.74, based on the last twelve months. … Price to Earnings Ratio = Price per Share (in the reporting currency) ÷ Earnings per Share (EPS)

Simply Wall St -

Can We See Significant Insider Ownership On The Chinasoft International Limited (HKG:354) Share Register?

If you want to know who really controls Chinasoft International Limited (HKG:354), then you'll have to look at the makeup of its share registry. … So it's nice to see some insider ownership, because it may suggest that management is owner-oriented. … With a market capitalization of HK$9.5b, Chinasoft International is a decent size, so it is probably on the radar of institutional investors.

Simply Wall St -

Did Chinasoft International Limited (HKG:354) Insiders Buy Up More Shares?

Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. … So we'll take a look at whether insiders have been buying or selling shares in Chinasoft International Limited (HKG:354). … But logic dictates you should pay some attention to whether insiders are buying or selling shares.

Simply Wall St -

What Should Investors Know About Chinasoft International Limited's (HKG:354) Return On Capital?

Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … Therefore, looking at how efficiently Chinasoft International is able to use capital to create earnings will help us understand your potential return.

Simply Wall St -

What does Chinasoft International Limited's (HKG:354) Balance Sheet Tell Us About Its Future?

Investors are always looking for growth in small-cap stocks like Chinasoft International Limited (HKG:354), with a market cap of HK$11.1b. … However, an important fact which most ignore is: how financially healthy is the business?

Simply Wall St -

Brief Commentary On Chinasoft International Limited's (HKG:354) Fundamentals

Chinasoft International Limited (HKG:354) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … In the case of 354, it

Simply Wall St -

Does Chinasoft International Limited's (HKG:354) Stock Price Account For Its Growth?

Chinasoft International Limited (HKG:354) is considered a high-growth stock, but its last closing price of HK$4.14 left some investors wondering if this high future earnings potential can be rationalized by its current price tag. … What can we expect from Chinasoft International in the future. … Chinasoft International's extremely high growth potential in the near future is attracting investors

Simply Wall St -

Company Info

Map
Description

Chinasoft International Limited, together with its subsidiaries, develops and provides information technology (IT) solutions, IT outsourcing and emerging, and training services. It operates through Technical Professional Services Group and Internet IT Services Group segments. The company offers ResourceOne and TopLink/TSA+ software, and Ark big data middleware platforms; strategic, business, and IT consulting services; and application software and solutions planning, design, development, integration, and operation and maintenance services. It also provides system integration, maintenance, and operation services; and product engineering, design, development, and quality assurance and testing services. In addition, the company offers enterprise application services; and packaged software implementation, customized development, maintenance and product upgradation, and business intelligence/data warehouse services. Further, it provides business, engineering, and knowledge process outsourcing services; mobile Internet product and service; cloud solutions; and big data related consulting, implementation, and development services. Additionally, the company offers JointForce, an Internet crowdsourcing platform; cloud migration, and operation and maintenance services; cloud consulting and SaaS customization services; and PaaS products that enables cloud development, integration, management, and serves as a portal to link with other cloud partners, as well as develops and trades standalone software and hardware products. It serves manufacturing and circulation, financial services and banking, insurance and securities, telecommunications and Internet, public services, energy, and high-technology business industries, as well as government and enterprises in the People's Republic of China, the United States, and Japan. The company was founded in 2000 and is headquartered in Beijing, the People's Republic of China.

Details
Name: Chinasoft International Limited
354
Exchange: SEHK
Founded: 2000
HK$9,918,225,897
2,448,944,666
Website: http://www.chinasofti.com
Address: Chinasoft International Limited
Raycon Infotech Park, Tower C,
North Wing 12th Floor,
Beijing,
100190,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 354 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 20. Jun 2003
OTCPK CFTL.F Ordinary Shares Pink Sheets LLC US USD 20. Jun 2003
SHSC 354 Ordinary Shares Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 20. Jun 2003
SZSC 354 Ordinary Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 20. Jun 2003
Number of employees
Current staff
Staff numbers
54,663
Chinasoft International employees.
Industry
IT Consulting and Other Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/02/18 12:32
End of day share price update: 2019/02/18 00:00
Last estimates confirmation: 2019/01/31
Last earnings filing: 2018/08/27
Last earnings reported: 2018/06/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.