Chinasoft International (0354) AI Stock Analysis

• Market Cap: HK$13.65B
• Dividend Yield: 1.06%
• Average Volume (3M): 20.77M
• Price to Earnings (P/E): 21.6
• Beta (1Y): 1.48
• 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: 13,758,249
• 30 Day Avg. Volume: 20,766,058
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.31
• Revenue Forecast (FY): HK$20.56B

• Rating: 54 Neutral
• Price Target: HK$5.50 ▲(1.48% Upside)

The overall stock score for Chinasoft International is primarily influenced by its mixed financial performance and bearish technical indicators. The company's stable equity base is a positive, but challenges in revenue growth and cash flow generation are concerns. The technical analysis suggests weak market momentum, and the valuation indicates moderate pricing with limited dividend yield.

Positive Factors

Strategic Partnerships

Strategic partnerships with major tech firms enable Chinasoft to leverage advanced technologies, enhancing service offerings and competitive edge.

Equity Stability

A strong equity base and healthy equity ratio suggest good financial stability, providing a solid foundation for future growth and investment.

Market Demand

Chinasoft's focus on digital transformation services aligns with industry trends, positioning it to benefit from increasing demand in the tech sector.

Negative Factors

Revenue Growth Challenges

A decrease in revenue highlights challenges in maintaining growth momentum, which could impact long-term business expansion and market share.

Cash Flow Volatility

Volatility in free cash flow suggests potential challenges in maintaining operational liquidity, which could affect the company's ability to invest in growth.

Debt Levels

Rising debt levels can strain financial resources and limit flexibility, potentially impacting long-term financial health and investment capacity.

Chinasoft International Business Overview & Revenue Model

Company Description

Chinasoft International (0354) is a leading IT services and solutions provider based in China, specializing in software development, IT consulting, and system integration. The company operates primarily in the technology and telecommunications sectors, offering a wide range of services including cloud computing, big data analytics, and enterprise digital transformation. Chinasoft International serves a diverse clientele, including government agencies, financial institutions, and various industries, delivering tailored solutions to meet their technological needs.

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

Chinasoft International shows a mixed financial picture. While there is strength in its equity and stability, there are notable challenges in maintaining revenue growth and operational profitability. Increased debt levels and uncertain cash flow generation indicate 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.53B	16.95B	17.12B	20.01B	18.40B	14.10B
Gross Profit	3.79B	3.74B	4.00B	4.60B	4.90B	4.12B
EBITDA	569.88M	564.80M	1.36B	809.76M	980.25M	1.08B
Net Income	540.99M	512.92M	712.67M	759.44M	1.14B	954.93M
Balance Sheet
Total Assets	18.54B	18.43B	17.07B	16.96B	16.90B	13.09B
Cash, Cash Equivalents and Short-Term Investments	2.66B	3.92B	4.44B	5.14B	5.79B	3.96B
Total Debt	4.57B	4.58B	3.17B	2.21B	2.39B	2.09B
Total Liabilities	6.81B	6.99B	5.30B	4.83B	5.28B	4.31B
Stockholders Equity	11.71B	11.42B	11.74B	12.11B	11.60B	8.75B
Cash Flow
Free Cash Flow	89.82M	-139.46M	318.06M	568.08M	674.99M	976.82M
Operating Cash Flow	299.31M	603.09M	719.94M	764.78M	962.14M	1.15B
Investing Cash Flow	-1.03B	-1.28B	-1.44B	-649.68M	-529.52M	-191.69M
Financing Cash Flow	191.91M	50.49M	-514.03M	-780.74M	1.38B	361.82M

Chinasoft International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 5.42 is above the 20-day moving average (MA) of 5.16, below the 50-day MA of 5.51, and below the 200-day MA of 5.50, indicating a bearish trend. The MACD of -0.15 indicates Negative momentum. The RSI at 43.38 is Neutral, neither overbought nor oversold. The STOCH value of 45.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0354.

Chinasoft International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0046	70 Outperform	HK$373.73M	12.69	5.83%	7.14%	-1.26%	-10.80%
1075	64 Neutral	HK$892.61M	42.02	1.79%	2.46%	8.90%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1460	61 Neutral	HK$254.50M	14.95	2.96%	3.62%	8.45%	-30.47%
1985	55 Neutral	HK$360.00M	-179.10	-0.83%	8.33%	-1.86%	-105.19%
0354	54 Neutral	HK$13.65B	21.56	4.70%	1.06%	5.43%	-6.88%
0861	44 Neutral	$3.99B	-14.47	-4.20%	2.65%	-6.07%	86.55%

Chinasoft International Corporate Events

Chinasoft Partners with Shen Kaihong and ESWIN for Dual-Open-Source Ecosystem

Chinasoft International has announced a strategic cooperation with Shen Kaihong and ESWIN Computing to develop a dual-open-source ecosystem based on ‘OpenHarmony + RISC-V’. This collaboration aims to enhance digital economy scenarios by leveraging the strengths of each partner, including Chinasoft’s software expertise, Shen Kaihong’s R&D experience, and ESWIN’s RISC-V chip solutions. The partnership will focus on developing edge computing products, expanding market reach in sectors like smart transportation, and participating in open-source community building. This initiative is set to challenge existing global architectural monopolies and foster a competitive third-generation software-hardware ecosystem, contributing to China’s technological self-reliance.

Chinasoft International Partners to Develop Independent Technology Ecosystem

Chinasoft International Limited has entered into a strategic cooperation agreement with Shenzhen Kaihong Digital Industry Development Co., Ltd. and Loongson Technology Corporation Limited to develop the ‘LoongHong Ecosystem,’ an independent and controllable new information technology ecology. This collaboration aims to integrate technology, products, market, and ecology to accelerate the industrialization of the ecosystem, focusing on technology adaptation, product development, market expansion, and ecological participation. The initiative is designed to enhance national digital sovereignty and network security, with an emphasis on creating long-term value for shareholders and contributing to technological self-reliance.

Chinasoft International Unveils New Company Logo

Chinasoft International Limited has announced a change in its company logo, which will be implemented immediately across all corporate documents and the company’s website. This change will not impact the rights of existing shareholders, as current share certificates with the old logo remain valid for all trading and registration purposes.

Chinasoft Signs Agreement to Propel Wuhan’s AI Industry

Chinasoft International Limited announced the signing of a three-year operation agreement for the Wuhan Cybersecurity Base Intelligent Computing Center, aiming to boost Wuhan’s AI industry cluster. As the exclusive domestic agency operator, Chinasoft will manage computing, storage, and network resources, providing full-lifecycle AI services to governments, enterprises, and research institutions. This initiative is part of Chinasoft’s strategy to promote the large-scale adoption of AI technologies and establish Wuhan as a leading AI hub in Central China.

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.

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.

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.