Executive Summary
Chinasoft International Limited, together with its subsidiaries, develops and provides information technology (IT) solutions, IT outsourcing, and training services. More Details
Rewards
Risk Analysis
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
| 354 | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.6% | -3.1% | 2.2% |
| 30 Day | 10.5% | 5.5% | 9.4% |
| 90 Day | 38.2% | 10.8% | 15.8% |
| 1 Year | 61.1%60.3% | 14.7%12.5% | 11.8%7.5% |
| 3 Year | 53.9%51.8% | -10.8%-15.3% | -3.5%-13.6% |
| 5 Year | 225.4%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
1 week ago | Simply Wall St
The Chinasoft International (HKG:354) Share Price Is Up 203% And Shareholders Are Boasting About It3 weeks ago | Simply Wall St
Are Robust Financials Driving The Recent Rally In Chinasoft International Limited's (HKG:354) Stock?1 month ago | Simply Wall St
If You Like EPS Growth Then Check Out Chinasoft International (HKG:354) Before It's Too LateValuation
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman of the Board & CEO | no data | CN¥16.78m | 9.75% CN¥ 2.2b | |
| Senior VP & Executive Director | 15.17yrs | CN¥12.40m | 0.43% CN¥ 98.1m | |
| Independent Non Executive Director | 17.75yrs | CN¥106.00k | no data | |
| Non-Executive Director | 12.08yrs | CN¥264.00k | 0.015% CN¥ 3.3m | |
| Non-Executive Director | 3.5yrs | CN¥264.00k | no data | |
| Independent Non-Executive Director | 5.58yrs | CN¥264.00k | no data | |
| Independent Non-Executive Director | 2.42yrs | CN¥264.00k | no data | |
| Non-Executive Director | 2.33yrs | CN¥686.00k | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 354 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Jun 2003 |
| CFTL.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jun 2003 |
| 354 | SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Jun 2003 |
| 354 | SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Jun 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/16 10:28 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.