Chinasoft International (0354) AI Stock Analysis

• Market Cap: $15.44B
• Dividend Yield: 0.89%
• Average Volume (3M): 44.84M
• Price to Earnings (P/E): 24.4
• Beta (1Y): 1.49
• Revenue Growth: 5.43%
• EPS Growth: -6.88%
• Country: HK
• Employees: 74,989
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.13
• Shares Outstanding: 2,732,079,300
• 10 Day Avg. Volume: 53,729,128
• 30 Day Avg. Volume: 44,843,751
• PEG Ratio: -1.22
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 0.74
• P/FCF Ratio: -89.59
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 0.89
• Enterprise Value/Gross Profit: 4.04
• Enterprise Value/Ebitda: 26.79
• 1Y Price Target: $7.22
• Price Target Upside: 20.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 59 Neutral
• Price Target: HK$6.00 ▲(0.00% Upside)

The overall stock score of 59 reflects a combination of mixed financial performance, technical weakness, and moderate valuation. The company's financial stability is offset by challenges in revenue growth and cash flow volatility. Technical indicators suggest bearish momentum, while valuation metrics indicate the stock is fairly priced.

Chinasoft International Business Overview & Revenue Model

Company Description

Chinasoft International Limited, together with its subsidiaries, develops and provides information technology (IT) solutions, IT outsourcing, and training services. It operates through Technical Professional Services Group and Internet IT Services Group segments. The company offers CloudEasy, a cloud management platform; Huaxia Cloud, a cloud brokerage platform; Tencent Cloud that provides cloud consultation, migration, operation and maintenance management, and application development and integration; enterprise cloud disk; and cloud shop O2O platform. It also provides IT application development and maintenance, IT testing, infrastructure management, product development and services, digital consulting and implementation, system integration and services, IT consulting and outsourcing, business process outsourcing, and other customer services. In addition, the company offers Internet IT services comprising software industry Internet platform for enterprises. The company serves financial institution, banks, telecommunications and Internet, insurance and securities, retail, high-technology business, manufacturing, transportation, and other industries, as well as to the various government. Chinasoft International Limited was incorporated in 2000 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

Chinasoft International generates revenue through multiple streams, primarily from IT services, software development, and consulting fees. The company earns significant income by providing customized software solutions and system integration services to its clients. Key revenue streams include project-based contracts, long-term maintenance agreements, and recurring service fees from cloud solutions. Additionally, Chinasoft International has established strategic partnerships with major technology firms, enabling it to leverage advanced technologies and expand its service offerings, thereby enhancing its earning potential. The company's focus on digital transformation services also positions it to capture growing demand in the rapidly evolving tech landscape.

Chinasoft International Financial Statement Overview

Summary

The financial performance is mixed, with stable profitability metrics but declining revenue and operational efficiency. Strong equity base supports stability, despite increased debt and volatile cash flows.

Income Statement

The company's gross profit margin and EBIT margin have shown a decline over recent years, indicating some pressure on operational efficiency. However, the net profit margin remains relatively stable. Revenue has decreased in the most recent year, highlighting a potential challenge in maintaining growth momentum.

Balance Sheet

The company maintains a strong equity base with a healthy equity ratio, which suggests good financial stability. However, an increase in total debt over the last year raises some concerns about leverage. The debt-to-equity ratio remains manageable, supporting overall financial health.

Cash Flow

There is noticeable volatility in free cash flow, with recent years showing a decline. The operating cash flow to net income ratio is not available for the last year, making it difficult to assess cash generation efficiency. The static cash flow indicates potential challenges in maintaining operational liquidity.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.95B	17.12B	20.01B	18.40B	14.10B
Gross Profit	3.74B	4.00B	4.60B	4.90B	4.12B
EBITDA	564.80M	1.36B	809.76M	980.25M	1.08B
Net Income	512.92M	712.67M	759.44M	1.14B	954.93M
Balance Sheet
Total Assets	18.43B	17.07B	16.96B	16.90B	13.09B
Cash, Cash Equivalents and Short-Term Investments	3.92B	4.44B	5.14B	5.79B	3.96B
Total Debt	4.58B	3.17B	2.21B	2.39B	2.09B
Total Liabilities	6.99B	5.30B	4.83B	5.28B	4.31B
Stockholders Equity	11.42B	11.74B	12.11B	11.60B	8.75B
Cash Flow
Free Cash Flow	-139.46M	318.06M	568.08M	674.99M	976.82M
Operating Cash Flow	603.09M	719.94M	764.78M	962.14M	1.15B
Investing Cash Flow	-1.28B	-1.44B	-649.68M	-529.52M	-191.69M
Financing Cash Flow	50.49M	-514.03M	-780.74M	1.38B	361.82M

Chinasoft International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0354, the sentiment is Positive. The current price of 6 is above the 20-day moving average (MA) of 5.99, below the 50-day MA of 6.12, and above the 200-day MA of 5.51, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 50.83 is Neutral, neither overbought nor oversold. The STOCH value of 53.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0354.

Chinasoft International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0046	―	HK$393.14M	13.34	5.83%	6.67%	-1.26%	-10.80%
1460	―	HK$272.05M	10.58	4.67%	3.39%	5.87%	54.21%
1075	―	HK$828.85M	39.02	1.79%	2.65%	9.05%	―
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
0354	―	$15.44B	24.38	4.70%	0.89%	5.43%	-6.88%
1985	―	HK$438.00M	48.50	4.04%	7.14%	20.83%	-75.45%
0861	―	$4.30B	―	-4.20%	2.44%	-6.07%	86.55%

Chinasoft International Corporate Events

Chinasoft International’s Major Shareholder Increases Stake

Chinasoft International Limited announced that its major shareholder, Chairman, and Executive Director, Dr. Chen Yuhong, has increased his shareholding in the company by acquiring 1,000,000 ordinary shares on the open market. This move, representing approximately 0.04% of the total issued shares, is seen as a demonstration of Dr. Chen’s confidence in the company’s future growth potential and business development.

The most recent analyst rating on (HK:0354) stock is a Buy with a HK$7.50 price target. To see the full list of analyst forecasts on Chinasoft International stock, see the HK:0354 Stock Forecast page.

Chinasoft’s Major Shareholder Increases Stake, Signaling Confidence in Growth

Chinasoft International Limited announced a voluntary update regarding a significant shareholding increase by its major shareholder, Chairman, and Executive Director, Dr. Chen Yuhong. On 23 September 2025, Dr. Chen acquired an additional 1,500,000 shares, following a previous acquisition in July, reflecting his confidence in the company’s future growth and business development. This acquisition increases Dr. Chen’s holdings to approximately 11.68% of the total issued shares, signaling strong internal belief in the company’s value and potential.

The most recent analyst rating on (HK:0354) stock is a Buy with a HK$7.50 price target. To see the full list of analyst forecasts on Chinasoft International stock, see the HK:0354 Stock Forecast page.

Chinasoft International Adjusts Use of Proceeds for HarmonyOS Development

Chinasoft International Limited announced a change in the use of proceeds from its 2021 placing agreement, which initially raised approximately HK$1,970 million. The company has extended the timeline for utilizing the remaining HK$394 million of unutilized net proceeds for the development of HarmonyOS and OpenHarmony products and solutions, now expected to be used by the end of 2025. This strategic adjustment reflects Chinasoft’s ongoing commitment to enhancing its technological offerings and expanding its market presence in the HarmonyOS and OpenHarmony ecosystem.

The most recent analyst rating on (HK:0354) stock is a Buy with a HK$7.50 price target. To see the full list of analyst forecasts on Chinasoft International stock, see the HK:0354 Stock Forecast page.

Chinasoft International Secures Key Role in Sinochem Info’s Procurement Project

Chinasoft International Limited has been shortlisted for Sinochem Info’s 2025-2027 Centralized Procurement Project, which involves consulting, ERP, and implementation & operation and maintenance services. This achievement highlights Chinasoft’s capabilities in digital transformation and strengthens its strategic position in the energy sector, particularly among central state-owned enterprises, as it aims to contribute to the industry’s high-quality development.

The most recent analyst rating on (HK:0354) stock is a Hold with a HK$6.30 price target. To see the full list of analyst forecasts on Chinasoft International stock, see the HK:0354 Stock Forecast page.

Chinasoft International Leads OpenHarmony Smart Transportation Initiative in Xi’an

Chinasoft International Limited has been elected as the city partner for the OpenHarmony Innovative Applications and HarmonyOS Ecosystem Construction in Xi’an’s smart transportation sector. This recognition from the Xi’an Municipal Government highlights Chinasoft’s technological prowess and ecosystem-building capabilities. The company will collaborate with partners to implement a comprehensive smart transportation system, focusing on data management, platform integration, and system equipment transformation. This initiative is expected to accelerate the large-scale implementation of OpenHarmony technology and contribute to Xi’an’s development as a national smart transportation innovation pilot.

The most recent analyst rating on (HK:0354) stock is a Hold with a HK$6.00 price target. To see the full list of analyst forecasts on Chinasoft International stock, see the HK:0354 Stock Forecast page.

Chinasoft International Reports Strong H1 2025 Financial Performance

Chinasoft International Limited reported a positive financial performance for the first half of 2025, with a 7.3% increase in revenue and a 10.4% rise in profit compared to the same period in 2024. The company’s strategic focus on service revenue contributed to a 7.8% growth in this segment, and the basic earnings per share increased by 15.6%. Despite these gains, the directors decided not to recommend an interim dividend, reflecting a cautious approach to financial management.

The most recent analyst rating on (HK:0354) stock is a Hold with a HK$6.00 price target. To see the full list of analyst forecasts on Chinasoft International stock, see the HK:0354 Stock Forecast page.

Chinasoft International Schedules Board Meeting to Discuss Financial Results and Dividend

Chinasoft International Limited has announced a board meeting scheduled for August 25, 2025, to discuss several key matters, including the approval of the company’s unaudited results for the first half of 2025 and the consideration of an interim dividend. This meeting could impact the company’s financial strategy and stakeholder interests, as it will address important financial disclosures and potential shareholder returns.

The most recent analyst rating on (HK:0354) stock is a Hold with a HK$5.60 price target. To see the full list of analyst forecasts on Chinasoft International stock, see the HK:0354 Stock Forecast page.