Chinasoft International (0354) AI Stock Analysis

• Market Cap: $15.38B
• Dividend Yield: 2.36%
• Average Volume (3M): 48.67M
• Price to Earnings (P/E): 26.2
• Beta (1Y): 1.44
• Revenue Growth: -2.86%
• EPS Growth: -20.72%
• Country: HK
• Employees: 74,989
• Sector: Technology
• Sector Strength: 94
• Industry: Information Technology Services
• EPS (TTM): 0.10
• Shares Outstanding: 2,732,079,300
• 10 Day Avg. Volume: 72,885,285
• 30 Day Avg. Volume: 48,674,623
• PEG Ratio: -1.45
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -16.71
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $5.49
• Price Target Upside: -3.43% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 57 Neutral
• Price Target: HK$6.00 ▲(5.45%Upside)

The overall score reflects a mixed outlook, with financial stability and short-term technical momentum offset by valuation concerns and operational challenges. While the strong equity position is a positive, high leverage and overbought technical signals introduce risks.

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 primarily through its IT services and solutions offerings. The company's revenue model is centered around providing software development, IT consulting, and system integration services to a diverse client base. Key revenue streams include IT outsourcing, where Chinasoft delivers end-to-end IT services to corporations and government entities, and digital transformation solutions, which involve modernizing clients' IT infrastructure and processes using cloud, AI, and big data technologies. Chinasoft also earns income through strategic partnerships with technology giants like Huawei and Microsoft, enhancing its service offerings and market reach. Additionally, the company benefits from long-term contracts and recurring service agreements, which provide a stable and predictable source of income.

Chinasoft International Financial Statement Overview

Summary

The company demonstrates strong financial stability due to a robust equity base, but faces challenges with declining revenue and operational efficiency. Increased debt levels and volatile cash flows further highlight areas for improvement.

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	5.39B	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: 5.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 5.69 is above the 20-day moving average (MA) of 5.01, above the 50-day MA of 5.05, and above the 200-day MA of 5.36, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 72.07 is Negative, neither overbought nor oversold. The STOCH value of 72.62 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
Sector *	63 Neutral	$34.60B	5.43	-11.64%	1.84%	5.30%	-18.55%
0354	57 Neutral	$15.38B	26.22	4.43%	2.36%	-2.86%	-20.72%
DCHIF	―	$609.05M	―	-4.20%	3.91%	―	―
CF90	―	€70.85M	―	-1.19%	3.39%	―	―
1460	78 Outperform	HK$258.89M	10.07	4.67%	3.39%	7.39%	142.61%
0046	74 Outperform	HK$383.43M	13.22	5.78%	6.96%	1.39%	-11.89%
1985	68 Neutral	HK$453.00M	50.33	4.04%	2.88%	32.84%	36.36%

Chinasoft International Corporate Events

Chinasoft Partners with SiliconFlow to Boost AI and Intelligent Transformation

Chinasoft International Limited has announced a strategic cooperation agreement with Beijing SiliconFlow Technology Co., Ltd. to jointly develop solutions aimed at enhancing enterprise digital and intelligent transformation. This partnership focuses on leveraging computing acceleration and AI services to create high-performance AI platforms, improve model deployment efficiency, and facilitate the large-scale deployment of intelligent applications. The collaboration is expected to lower barriers to intelligent transformation and drive digital intelligence across various industries, including energy, finance, and public utilities.

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.

Chinasoft International Launches Hongyun Virtual Machine for HarmonyOS

Chinasoft International Limited has launched the Hongyun Virtual Machine, a Harmony-version virtual machine designed to enhance the HarmonyOS ecosystem. This innovation allows Harmony PCs to integrate seamlessly with Windows applications, addressing ecosystem bottlenecks and offering dual-system intelligent interaction and cross-terminal flow. The Hongyun Virtual Machine features a secure Windows operating environment, a comprehensive app store, and robust data protection measures, showcasing Chinasoft’s technical prowess in domestic operating systems and application ecosystem integration.

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.

Chinasoft Launches Kaihong Bot Series for OpenHarmony Developers

Chinasoft International Limited, in collaboration with Shenzhen Kaihong Digital Industry Development Co., Ltd., has launched the Kaihong Bot series, a national OpenHarmony learning platform for developers. This initiative marks a significant step in software-hardware integration, offering a desktop operating system based on OpenHarmony and supporting multi-device collaboration, enhanced security, and AI integration. The launch aims to accelerate the development and popularization of OpenHarmony-related business, extending services to critical industries such as manufacturing, finance, and transportation.

The most recent analyst rating on (HK:0354) stock is a Hold with a HK$4.90 price target. To see the full list of analyst forecasts on Chinasoft International stock, see the HK:0354 Stock Forecast page.

Chinasoft International Secures Shareholder Approval for Key Resolutions at AGM

Chinasoft International Limited announced that all resolutions proposed at its Annual General Meeting held on May 20, 2025, were approved by shareholders. The resolutions included the re-election of directors, authorization of board remuneration, re-appointment of auditors, and granting of mandates for issuing and repurchasing shares, reflecting strong shareholder support and potentially enhancing the company’s governance and operational flexibility.

The most recent analyst rating on (HK:0354) stock is a Hold with a HK$4.90 price target. To see the full list of analyst forecasts on Chinasoft International stock, see the HK:0354 Stock Forecast page.

Chinasoft International Proposes Issuance Mandate for Share Flexibility

Chinasoft International Limited announced a proposal for an Issuance Mandate to be discussed at its Annual General Meeting. This mandate would allow the company to issue new shares and manage treasury shares, with a maximum discount of 10% to the benchmarked price, enhancing its flexibility in financial operations.

Chinasoft International Announces 2025 Annual General Meeting

Chinasoft International Limited has announced its upcoming annual general meeting scheduled for May 20, 2025, in Hong Kong. The meeting will address several key agenda items, including the consideration of the company’s audited financial statements for 2024, the re-election of directors, and the authorization of the board to fix directors’ and auditors’ remuneration. Additionally, the meeting will propose ordinary resolutions to empower the directors to manage the company’s share capital, including the issuance and transfer of shares, which could impact the company’s market operations and shareholder value.