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Chinasoft International
(0354)
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Rating:47Neutral
Price Target:
HK$3.00
▼(-20.21% Downside)
Action:Reiterated
Date:10/21/26
The score is held down primarily by weakening financial performance, especially multi-year revenue decline, sharp margin compression, and negative free cash flow in the last two years. Technical indicators also reflect a weak trend (negative MACD, below key moving averages), though oversold readings provide a small offset. Valuation is only moderately supportive given the ~22.45 P/E alongside a modest ~1.24% dividend yield.
Positive Factors
Balance Sheet Stability
The company retains a reasonably stable balance sheet despite greater debt reliance, with moderate leverage and substantial equity supporting financial flexibility. This provides some capacity to maintain operations and fund priorities while profitability is under pressure, reducing immediate balance-sheet stress.
Negative Factors
Persistent Revenue Decline
Three consecutive years of revenue contraction point to weakening demand or reduced business momentum across the company’s services base. A sustained top-line decline can limit scale benefits, constrain investment capacity, and make it harder to rebuild earnings without renewed customer and project growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Stability
The company retains a reasonably stable balance sheet despite greater debt reliance, with moderate leverage and substantial equity supporting financial flexibility. This provides some capacity to maintain operations and fund priorities while profitability is under pressure, reducing immediate balance-sheet stress.
Read all positive factors
Chinasoft International (0354) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$8.72B
Dividend Yield1.44%
Average Volume (3M)10.33M
Price to Earnings (P/E)19.2
Beta (1Y)1.52
Revenue Growth3.18%
EPS Growth-31.38%
CountryHK
Employees78,030
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.14
Shares Outstanding2,732,079,300
10 Day Avg. Volume10,938,784
30 Day Avg. Volume10,326,052
Financial Highlights & Ratios
PEG Ratio-0.98
Price to Book (P/B)1.00
Price to Sales (P/S)0.69
P/FCF Ratio-567.61
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$4.48Price Target Upside19.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)0.23
Revenue Forecast (FY)HK$18.76B
Chinasoft International Business Overview & Revenue Model
Company Description
Chinasoft International Limited, operating through its subsidiaries, specializes in delivering a comprehensive array of information technology solutions, IT outsourcing, and professional training services. The company's activities are organized in...
How the Company Makes Money
Chinasoft International makes money primarily by selling IT services and project-based solutions to corporate and government customers. Its revenue model typically includes: (1) Project-based delivery fees for systems integration and custom softwa...
Chinasoft International Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
63
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 17.35B | 17.03B | 16.95B | 17.12B | 20.01B | 18.40B |
| Gross Profit | 3.50B | 3.47B | 3.74B | 4.00B | 4.60B | 4.90B |
| EBITDA | 636.22M | 518.33M | 700.61M | 1.36B | 1.09B | 1.25B |
| Net Income | 351.43M | 321.45M | 512.92M | 712.67M | 759.44M | 1.14B |
Balance Sheet | ||||||
| Total Assets | 20.19B | 18.74B | 18.43B | 17.07B | 16.96B | 16.90B |
| Cash, Cash Equivalents and Short-Term Investments | 3.74B | 3.82B | 3.92B | 4.44B | 5.14B | 5.79B |
| Total Debt | 6.06B | 4.82B | 4.58B | 3.17B | 2.21B | 2.39B |
| Total Liabilities | 8.33B | 6.92B | 6.99B | 5.30B | 4.83B | 5.28B |
| Stockholders Equity | 11.84B | 11.80B | 11.42B | 11.74B | 12.11B | 11.60B |
Cash Flow | ||||||
| Free Cash Flow | 288.40M | -20.69M | -139.46M | 318.06M | 568.08M | 674.99M |
| Operating Cash Flow | 800.38M | 491.30M | 603.09M | 719.94M | 764.78M | 962.14M |
| Investing Cash Flow | -1.05B | -821.13M | -1.28B | -1.44B | -649.68M | -529.52M |
| Financing Cash Flow | 880.27M | -24.77M | 50.49M | -514.03M | -780.74M | 1.38B |
Chinasoft International Technical Analysis
Negative
3.76
Price Trends
3.73
Negative
3.55
Negative
3.79
Negative
Market Momentum
-0.11
Positive
32.29
Neutral
7.40
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0354, the sentiment is Negative. The current price of 3.76 is above the 20-day moving average (MA) of 3.64, above the 50-day MA of 3.73, and below the 200-day MA of 3.79, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 32.29 is Neutral, neither overbought nor oversold. The STOCH value of 7.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0354.
Chinasoft International Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | HK$322.00M | 7.77 | 35.60% | 22.39% | -21.68% | -55.57% | |
62 Neutral | HK$504.27M | 5.47 | 6.36% | 4.56% | 8.36% | 286.36% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | HK$604.39M | -2.38 | -11.90% | 4.17% | 4.44% | -266.43% | |
53 Neutral | HK$3.25B | -40.63 | -0.96% | 1.85% | 16.16% | 83.77% | |
47 Neutral | HK$8.72B | 19.23 | 2.97% | 1.44% | 3.18% | -31.38% | |
42 Neutral | HK$128.42M | -1.02 | -266.25% | 5.33% | -40.17% | -123.05% |
* Technology Sector Average
HK:0354
Chinasoft International
3.23
-2.53
-43.99%
HK:0092
Champion Technology Holdings
0.12
-0.06
-33.14%
HK:0861
Digital China Holdings
1.95
-0.99
-33.72%
HK:2176
CCID Consulting Co. Ltd. Class H
0.46
-1.04
-69.25%
HK:1075
Capinfo Co., Ltd. Class H
1.74
-0.98
-35.96%
HK:0771
Automated Systems Holdings Limited
0.72
-0.05
-6.98%
Chinasoft International Corporate Events
Chinasoft Details Valuation Rationale for Controlling Stake in GISWAY
Oct 30, 2026
Chinasoft International has provided additional details on its previously announced acquisition of a 29.68% stake in Hangzhou GISWAY Information Technology, an SZSE-listed technology firm, for RMB943.7 million. The deal will give Chinasoft board c...
Chinasoft Wins Key AI Manufacturing Project in Guangdong Pilot Base
Sep 21, 2026
Chinasoft International has secured a RMB16 million contract for the 2025 Guangdong Industrial Internet Pilot Base Shenzhen AI-Assisted Design for Manufacturability project, a key component of China’s National Artificial Intelligence Applica...
Chinasoft to Take Control of Energy Services Firm Gisway in RMB943.7 Million Deal
Sep 16, 2026
Chinasoft International has agreed, via its wholly owned subsidiary Chinasoft Xian, to acquire 29.68% of A shares in Hangzhou Gisway Information Technology for RMB53 per share, valuing the deal at about RMB943.7 million to be funded with internal ...
Chinasoft Wins RMB35.5 Million OpenHarmony AI Smart Home Project in Foshan
Sep 8, 2026
Chinasoft International has secured a RMB35.5 million contract to build the Guangdong Industrial Robot and Smart Home Application Enablement Centre’s Pan-Home-Furnishing OpenHarmony Artificial Intelligence Innovation Centre in Foshan. The pr...
Chinasoft Wins RMB245 Million Xi’an Smart Transportation Contract, Advancing AI + OpenHarmony Strategy
Aug 25, 2026
Chinasoft International has secured a RMB245 million contract as lead member of a consortium to build Xi’an’s 2026–2027 smart transportation system, advancing its “AI + OpenHarmony” dual‑engine strategy in a cor...
Chinasoft International’s AI-Driven Interim Results Show Double-Digit Profit Growth
Aug 20, 2026
Chinasoft International reported solid interim results for the first half of 2026, with revenue rising 5.2% year-on-year to RMB 8.95 billion and service revenue up 4.1%. Net profit for the period increased 11.1% to RMB 349.9 million, while profit ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.