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Microware Group Ltd.
(1985)
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Rating:53Neutral
Price Target:
HK$2.00
▲(55.04% Upside)
Action:Reiterated
Date:09/30/26
Overall score reflects mixed fundamentals with a key drag from volatile cash generation and recent revenue/margin pressure, alongside a clearly bearish technical setup (price below major moving averages and negative momentum). Valuation is neutral at ~21.95x earnings and does not materially offset the financial and technical risks.
Positive Factors
Improved Return on Equity
The sharp improvement in return on equity indicates that the company is converting its equity base into earnings more effectively than in the prior year. Continued positive profitability provides an internal foundation for reinvestment and supports financial resilience over the coming quarters.
Negative Factors
Revenue Contraction and Volatility
The latest revenue contraction interrupts the prior growth period and highlights uneven demand across the business. Sustained top-line volatility can make planning and resource allocation less predictable, while a smaller revenue base reduces the operating leverage available to support future earnings growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Return on Equity
The sharp improvement in return on equity indicates that the company is converting its equity base into earnings more effectively than in the prior year. Continued positive profitability provides an internal foundation for reinvestment and supports financial resilience over the coming quarters.
Read all positive factors
Microware Group Ltd. (1985) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$695.47M
Dividend Yield3.37%
Average Volume (3M)109.67K
Price to Earnings (P/E)23.3
Beta (1Y)-0.13
Revenue Growth-12.76%
EPS Growth234.22%
CountryHK
Employees270
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.10
Shares Outstanding306,374,000
10 Day Avg. Volume119,400
30 Day Avg. Volume109,666
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)1.60
Price to Sales (P/S)0.28
P/FCF Ratio26.57
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Microware Group Ltd. Business Overview & Revenue Model
Company Description
As an investment holding company, Microware Group Limited delivers comprehensive information technology (IT) infrastructure solutions and managed services across Hong Kong. Its diverse client base includes government agencies, educational establis...
Microware Group Ltd. Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
70
Positive
Cash Flow
45
Neutral
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.30B | 1.49B | 1.23B | 1.17B | 1.15B |
| Gross Profit | 172.44M | 188.26M | 144.96M | 121.57M | 132.62M |
| EBITDA | 47.00M | 39.15M | 57.59M | 45.17M | 51.67M |
| Net Income | 30.20M | 8.16M | 36.23M | 33.18M | 31.97M |
Balance Sheet | |||||
| Total Assets | 646.45M | 727.33M | 516.94M | 516.83M | 543.22M |
| Cash, Cash Equivalents and Short-Term Investments | 162.51M | 170.40M | 165.19M | 293.33M | 269.61M |
| Total Debt | 118.75M | 70.06M | 20.57M | 12.61M | 22.88M |
| Total Liabilities | 419.67M | 504.72M | 335.63M | 304.36M | 332.42M |
| Stockholders Equity | 226.78M | 222.62M | 181.31M | 212.47M | 211.76M |
Cash Flow | |||||
| Free Cash Flow | 13.66M | 79.19M | -24.86M | 74.92M | 43.77M |
| Operating Cash Flow | 14.13M | 86.78M | -24.62M | 77.21M | 45.97M |
| Investing Cash Flow | 4.24M | -60.99M | 4.26M | -1.48M | -1.38M |
| Financing Cash Flow | -90.80M | -24.67M | -68.10M | -52.06M | -42.56M |
Microware Group Ltd. Technical Analysis
Neutral
1.29
Price Trends
2.80
Negative
2.68
Negative
1.99
Positive
Market Momentum
-0.17
Positive
39.28
Neutral
18.03
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1985, the sentiment is Neutral. The current price of 1.29 is below the 20-day moving average (MA) of 2.53, below the 50-day MA of 2.80, and below the 200-day MA of 1.99, indicating a neutral trend. The MACD of -0.17 indicates Positive momentum. The RSI at 39.28 is Neutral, neither overbought nor oversold. The STOCH value of 18.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1985.
Microware Group Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | HK$488.33M | 5.33 | 6.36% | 4.73% | 8.36% | 286.36% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | HK$612.78M | -2.38 | -11.90% | 4.11% | 4.44% | -266.43% | |
60 Neutral | HK$278.67M | -0.90 | -14.17% | 13.93% | -7.04% | -163.40% | |
53 Neutral | HK$695.47M | 23.29 | 14.46% | 3.37% | -12.76% | 234.22% | |
48 Neutral | HK$294.86M | 14.11 | 4.30% | 8.47% | -4.91% | -27.51% | |
45 Neutral | HK$850.00M | 98.84 | 2.49% | ― | 11.85% | 1128.57% |
* Technology Sector Average
HK:1985
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Microware Group Ltd. Corporate Events
Microware Group Raises HK$21.4 Million Through Share Placing to Boost Liquidity
Sep 4, 2026
Microware Group Limited has completed a placing of 6,374,000 new shares under its general mandate, raising gross proceeds of about HK$21.4 million at HK$3.35 per share. The shares, representing just over 2% of the enlarged share capital, were plac...
Microware Shareholders Back Board, Mandates at 2026 AGM
Aug 27, 2026
Microware Group Limited announced the voting results of its annual general meeting held in Hong Kong on 27 August 2026, where all resolutions were decided by poll. The company confirmed that all 300 million issued shares were entitled to vote, wit...
Microware Group Clarifies CEO Compensation in Supplemental Filing
Aug 25, 2026
Microware Group Limited has issued a supplemental announcement clarifying the remuneration terms for its newly appointed chief executive officer, Lin Shiqing. Under his service contract with the group, Lin will receive a monthly salary of HK$220,0...
Microware Group Names Veteran IT Executive Lin Shiqing as CEO
Aug 20, 2026
Microware Group Limited has appointed Mr. Lin Shiqing as chief executive officer, effective 20 August 2026, as the company seeks to strengthen its technology and digital transformation capabilities. Mr. Lin brings more than two decades of experien...
Microware Extends Share Placing Deadline and Confirms Premium Pricing
Aug 17, 2026
Microware Group Limited has agreed with its placing agent to further extend the long stop date for completing a placing of new shares under its general mandate, moving the deadline from 17 August 2026 to 7 September 2026, or a later date if mutual...
Microware grants 6.6 million share options to incentivize key talent
Jul 28, 2026
Microware Group Limited has granted 6.6 million share options to three eligible participants under its share option scheme adopted in 2017, with each option entitling the holder to subscribe for one ordinary share at an exercise price of HK$3.162....
Microware Group Sets August AGM, Seeks 20% Share Issuance Mandate
Jul 27, 2026
Microware Group Limited has called its annual general meeting for 27 August 2026 in Hong Kong, where shareholders will review and adopt the audited consolidated financial statements for the year ended 31 March 2026. The agenda also includes reR...
Microware hires senior advisers to drive AI-led global expansion and M&A push
Jul 24, 2026
Microware Group Limited has appointed two high-profile consultants to support its global expansion and AI-driven strategy, underscoring its ambition to deepen its presence in advanced digital sectors. The company aims to leverage their expertise t...
Microware Extends Deadline for New Share Placing and Confirms Pricing Terms
Jul 23, 2026
Microware Group Limited has extended the long stop date for completing its placing of new shares under a general mandate, after agreeing a supplemental placing agreement with its placing agent. The deadline has been pushed from 27 July 2026 to 17 ...
Microware Group Plans HK$100 Million Share Placement to Fund AI Expansion
Jul 6, 2026
Microware Group Ltd. has entered into an agreement with Astrum Capital Management Ltd. to place up to 30 million new shares, equal to 10% of its existing share capital, at HK$3.35 per share. The price represents a small discount to recent market l...
Microware Profit Surges Despite Revenue Drop as Dividend Held Back
Jun 30, 2026
Microware Group Limited reported revenue of about HK$1.30 billion for the year ended 31 March 2026, a 12.8% decline from the prior year amid softer sales. Despite lower top-line performance, profit attributable to shareholders jumped to approximat...
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.