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Chinasoft International Ltd. (HK:0354)
:0354
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Chinasoft International (0354) AI Stock Analysis

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HK:0354

Chinasoft International

(0354)

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Neutral 45 (OpenAI - Gpt-5.6Sol)
Rating:45Neutral
Price Target:
HK$4.00
▲(6.38% Upside)
Action:Reiterated
Date:07/21/26
The score is primarily weighed down by weakening fundamentals—multi-year revenue decline, substantial margin compression, and negative free cash flow in 2024–2025—despite a relatively stable balance sheet. Technical indicators also point to soft momentum (negative MACD and sub-40 RSI), while valuation is only moderately supportive given a mid-20s P/E and a modest ~1.3% dividend yield.
Positive Factors
Broad end-to-end IT services platform
An end-to-end offering across development, outsourcing, consulting, cloud, and industry solutions gives the company multiple ways to participate in customer technology spending. Coverage of telecom, finance, government, and large enterprises can broaden its addressable service base and support recurring client relationships.
Negative Factors
Multi-year revenue contraction
Three consecutive years of shrinking revenue point to a sustained weakening in demand, customer spending, or execution rather than a single-period setback. Continued contraction would reduce operating leverage, constrain investment capacity, and make it harder for the company to rebuild earnings over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Broad end-to-end IT services platform
An end-to-end offering across development, outsourcing, consulting, cloud, and industry solutions gives the company multiple ways to participate in customer technology spending. Coverage of telecom, finance, government, and large enterprises can broaden its addressable service base and support recurring client relationships.
Read all positive factors

Chinasoft International (0354) vs. iShares MSCI Hong Kong ETF (EWH)

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
Financial performance is pressured by three straight years of revenue declines (ending with ~5% down in 2025), sharp margin compression (gross margin ~29% in 2020 to ~20% in 2025; net margin ~6.8% to ~1.9%), and negative free cash flow in 2024–2025. The balance sheet is comparatively steadier with moderate leverage (debt-to-equity ~0.41), but declining profitability and cash conversion are the key constraints.
Income Statement
46
Neutral
Balance Sheet
63
Positive
Cash Flow
38
Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue17.35B17.03B16.95B17.12B20.01B18.40B
Gross Profit3.50B3.47B3.74B4.00B4.60B4.90B
EBITDA634.03M290.33M564.80M1.36B809.76M980.25M
Net Income351.43M321.45M512.92M712.67M759.44M1.14B
Balance Sheet
Total Assets20.19B18.74B18.43B17.07B16.96B16.90B
Cash, Cash Equivalents and Short-Term Investments3.74B3.82B3.92B4.44B5.14B5.79B
Total Debt6.06B4.82B4.58B3.17B2.21B2.39B
Total Liabilities8.33B6.92B6.99B5.30B4.83B5.28B
Stockholders Equity11.84B11.80B11.42B11.74B12.11B11.60B
Cash Flow
Free Cash Flow288.40M-20.69M-139.46M318.06M568.08M674.99M
Operating Cash Flow800.38M491.30M603.09M719.94M764.78M962.14M
Investing Cash Flow-1.05B-821.13M-1.28B-1.44B-649.68M-529.52M
Financing Cash Flow880.27M-24.77M50.49M-514.03M-780.74M1.38B

Chinasoft International Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.76
Price Trends
50DMA
3.55
Positive
100DMA
3.51
Positive
200DMA
4.03
Negative
Market Momentum
MACD
0.07
Positive
RSI
48.29
Neutral
STOCH
11.37
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 below the 20-day moving average (MA) of 3.77, above the 50-day MA of 3.55, and below the 200-day MA of 4.03, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 48.29 is Neutral, neither overbought nor oversold. The STOCH value of 11.37 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
HK$329.00M7.9935.60%21.91%-21.68%-55.57%
64
Neutral
HK$497.02M5.426.36%4.63%8.20%286.36%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
61
Neutral
HK$621.18M-2.45-11.90%4.05%4.44%-266.43%
53
Neutral
HK$3.45B-43.13-0.96%1.74%16.16%83.77%
45
Neutral
HK$9.99B22.172.97%1.26%3.18%-31.38%
42
Neutral
HK$205.25M-3.39-49.78%5.33%-50.92%54.58%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0354
Chinasoft International
3.70
-2.25
-37.86%
HK:0092
Champion Technology Holdings
0.19
<0.01
5.06%
HK:0861
Digital China Holdings
2.07
-1.13
-35.25%
HK:2176
CCID Consulting Co. Ltd. Class H
0.47
-1.25
-72.61%
HK:1075
Capinfo Co., Ltd. Class H
1.72
-1.45
-45.90%
HK:0771
Automated Systems Holdings Limited
0.74
-0.12
-13.95%

Chinasoft International Corporate Events

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&#8217;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&#8217;an&#8217;s 2026&#8211;2027 smart transportation system, advancing its &#8220;AI + OpenHarmony&#8221; dual&#8209;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 ...
Chinasoft International Sets August Board Meeting to Review Interim Results and Dividend
Jul 30, 2026
Chinasoft International Limited has scheduled a board meeting in Beijing on 20 August 2026 to review and approve its unaudited financial results for the six months ended 30 June 2026. The meeting will also consider declaring an interim dividend, w...
Chinasoft Partners with Moonshot AI to Drive Enterprise Agentic AI and Token-Based Revenue Model
Jul 20, 2026
Chinasoft International has signed a token revenue-sharing and joint innovation cooperation agreement with Beijing Moonshot AI Technology to accelerate the deployment of enterprise-grade Agentic AI solutions. The partnership will combine Chinasoft...
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.Date of analysis: Jul 21, 2026