Chinasoft International (0354) AI Stock Analysis

• Market Cap: HK$15.38B
• Dividend Yield: 0.96%
• Average Volume (3M): 49.07M
• Price to Earnings (P/E): 26.2
• Beta (1Y): 1.41
• Revenue Growth: -2.86%
• EPS Growth: -20.72%
• Country: HK
• Employees: 74,989
• Sector: Technology
• Sector Strength: 92
• Industry: Information Technology Services
• EPS (TTM): 0.10
• Shares Outstanding: 2,732,079,300
• 10 Day Avg. Volume: 47,018,739
• 30 Day Avg. Volume: 49,066,608
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: HK$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 Ltd. (0354.HK) is a leading global IT services provider headquartered in China. The company operates across several sectors, including technology, telecommunications, finance, and government services, offering a wide range of products and services such as IT consulting, software development, and IT outsourcing. Chinasoft International is known for its end-to-end solutions that cater to the digital transformation needs of businesses, leveraging cutting-edge technologies like cloud computing, big data, and artificial intelligence.

How the Company Makes Money

Chinasoft International generates revenue primarily through its IT services, which include consulting, software development, and outsourcing services. The company offers customized IT solutions to a broad spectrum of industries, ensuring a steady stream of income from various sectors. Key revenue streams include long-term service contracts with large enterprises and government bodies, as well as project-based engagements. Chinasoft International also benefits from strategic partnerships with global technology giants such as Huawei, which help expand its market reach and enhance its service offerings. These partnerships, along with the company's focus on emerging technologies, contribute significantly to its earnings.

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: 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 5.69 is above the 20-day moving average (MA) of 5.46, above the 50-day MA of 5.14, and above the 200-day MA of 5.36, indicating a bullish trend. The MACD of 0.16 indicates Positive momentum. The RSI at 60.46 is Neutral, neither overbought nor oversold. The STOCH value of 25.00 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
1460	78 Outperform	HK$293.99M	11.26	4.67%	3.03%	5.87%	54.21%
0046	74 Outperform	HK$402.85M	13.89	5.78%	6.63%	1.39%	-11.89%
1985	66 Neutral	HK$489.00M	54.33	4.04%	2.88%	20.83%	-75.53%
1075	64 Neutral	HK$739.01M	―	-1.19%	2.86%	2.17%	80.59%
0354	57 Neutral	HK$15.38B	26.22	4.43%	0.96%	-2.86%	-20.72%
Sector *	57 Neutral	HK$14.02B	9.49	-2.83%	4.86%	9.29%	-48.65%
0861	43 Neutral	HK$4.63B	―	-4.20%	2.29%	-10.06%	86.09%

Chinasoft International Corporate Events

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.

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.