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Chanjet Information Technology Co., Ltd. Class H (HK:1588)
:1588
Hong Kong Market

Chanjet Information Technology Co., Ltd. Class H (1588) AI Stock Analysis

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HK

Chanjet Information Technology Co., Ltd. Class H

(1588)

Rating:65Neutral
Price Target:
Chanjet Information Technology Co., Ltd. presents a mixed investment case. The company shows strong revenue growth and a robust balance sheet, which are significant strengths. However, challenges in operational efficiency and cash flow stability weigh on its financial performance. The technical analysis suggests potential bearish momentum, and the high P/E ratio indicates overvaluation concerns. These factors collectively contribute to a moderate overall stock score.

Chanjet Information Technology Co., Ltd. Class H (1588) vs. iShares MSCI Hong Kong ETF (EWH)

Chanjet Information Technology Co., Ltd. Class H Business Overview & Revenue Model

Company DescriptionChanjet Information Technology Co., Ltd. Class H (1588) is a leading provider of enterprise software solutions in China, primarily catering to small and medium-sized enterprises (SMEs). The company specializes in offering cloud-based and on-premise software designed to streamline business operations, including financial and accounting management, supply chain management, and customer relationship management (CRM). With a strong focus on innovation and user-friendly solutions, Chanjet helps businesses improve efficiency and competitiveness in an increasingly digital economy.
How the Company Makes MoneyChanjet Information Technology Co., Ltd. generates revenue through the sale of its software products and services to SMEs. The company's key revenue streams include subscription fees for its cloud-based software solutions, licensing fees for its on-premise software, and maintenance and support services. Additionally, Chanjet may engage in strategic partnerships with other technology companies to expand its product offerings and market reach, further enhancing its revenue potential. The company's ability to continuously innovate and meet the evolving needs of SMEs is a critical factor in sustaining its earnings growth.

Chanjet Information Technology Co., Ltd. Class H Financial Statement Overview

Summary
Chanjet Information Technology Co., Ltd. shows promising revenue growth and improving net profitability. The balance sheet is strong with low leverage and a solid equity position. However, operational efficiency needs attention due to negative EBIT and EBITDA margins. Cash flow stability remains a concern despite positive free cash flow, suggesting areas for improvement in cash management and operational execution.
Income Statement
78
Positive
Chanjet Information Technology Co., Ltd. has shown a strong revenue growth rate of 19.8% in the latest year, supported by a notable increase in gross profit margin to 72.1%. However, the company is experiencing negative EBIT and EBITDA margins, indicating challenges in operational efficiency. Despite these issues, net profit margin has improved significantly to 3.5%, suggesting a positive trend in profitability.
Balance Sheet
82
Very Positive
The balance sheet of Chanjet Information Technology is robust, with a low debt-to-equity ratio of 0.003, indicating minimal financial leverage. The equity ratio stands at 53.3%, highlighting a strong capital structure. Return on equity has improved to 3.7%, showcasing better profitability despite past challenges.
Cash Flow
65
Positive
Cash flow metrics present a mixed picture. Free cash flow has seen fluctuations, but the company has managed to maintain a positive free cash flow position in recent years. However, the operating cash flow to net income ratio has been inconsistent, signaling potential volatility in cash generation relative to earnings.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
959.27M800.62M680.15M590.32M509.42M
Gross Profit
692.05M538.60M413.61M410.35M425.98M
EBIT
-9.70M0.00-252.55M-225.55M-21.27M
EBITDA
-8.87M37.75M-248.23M-222.31M47.23M
Net Income Common Stockholders
33.46M15.88M-212.09M-185.07M33.39M
Balance SheetCash, Cash Equivalents and Short-Term Investments
942.67M1.04B1.18B1.30B1.39B
Total Assets
1.69B1.59B1.52B1.62B1.61B
Total Debt
2.42M6.76M12.75M1.96M5.90M
Net Debt
-931.55M-880.09M-1.16B-1.19B-1.28B
Total Liabilities
791.39M715.92M806.46M700.96M343.92M
Stockholders Equity
903.27M869.66M712.31M923.39M1.27B
Cash FlowFree Cash Flow
0.00-43.16M-162.45M-99.83M89.43M
Operating Cash Flow
0.00-42.05M-159.12M-90.73M90.52M
Investing Cash Flow
0.00-65.69M519.93M364.26M-214.76M
Financing Cash Flow
0.00-7.43M-7.18M-27.84M-95.41M

Chanjet Information Technology Co., Ltd. Class H Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6.98
Price Trends
50DMA
6.48
Positive
100DMA
6.56
Positive
200DMA
5.43
Positive
Market Momentum
MACD
0.03
Negative
RSI
54.15
Neutral
STOCH
76.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1588, the sentiment is Positive. The current price of 6.98 is above the 20-day moving average (MA) of 6.59, above the 50-day MA of 6.48, and above the 200-day MA of 5.43, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 54.15 is Neutral, neither overbought nor oversold. The STOCH value of 76.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1588.

Chanjet Information Technology Co., Ltd. Class H Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
HK$46.77B26.577.07%0.42%19.66%169.54%
65
Neutral
HK$2.18B61.613.79%17.66%97.73%
62
Neutral
$11.80B10.31-7.45%2.91%7.43%-7.78%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1588
Chanjet Information Technology Co., Ltd. Class H
6.98
3.42
96.07%
HK:3888
Kingsoft
34.40
8.67
33.68%

Chanjet Information Technology Co., Ltd. Class H Corporate Events

Chanjet Information Technology Announces AGM and Key Resolutions
Apr 25, 2025

Chanjet Information Technology Co., Ltd. has announced its upcoming Annual General Meeting (AGM) scheduled for May 20, 2025, in Beijing. The meeting will address several key resolutions, including the approval of the company’s financial reports for 2024, the appointment of Ernst & Young as auditors for 2025, and a mandate for the board to issue new shares. These resolutions are significant as they reflect the company’s ongoing financial management and strategic planning efforts, potentially impacting its market position and shareholder value.

Chanjet Information Technology Plans H Share Repurchase
Apr 25, 2025

Chanjet Information Technology Co., Ltd. has announced a special resolution for the H Shareholders’ Class Meeting scheduled for May 2025. The resolution seeks approval for the Board to repurchase up to 10% of the H Shares in issue, excluding treasury shares. This move is aimed at enhancing shareholder value and optimizing the company’s capital structure, with potential implications for market perception and investor confidence.

Chanjet Information Technology Plans H Share Repurchase
Apr 25, 2025

Chanjet Information Technology Co., Ltd. has announced a domestic shareholders’ class meeting scheduled for May 2025 to discuss a special resolution. The resolution seeks approval for the Board to repurchase up to 10% of the company’s H Shares, which could impact the company’s market positioning and shareholder value.

Chanjet Information Technology Reports Strong Q1 2025 Financial Performance
Apr 25, 2025

Chanjet Information Technology Co., Ltd. reported a significant financial turnaround in the first quarter of 2025, with an 11% increase in operating revenue and a shift from a net loss to a net profit of RMB18.61 million. This improvement is attributed to the company’s strategic focus on cloud subscriptions, which now account for 72% of total revenue, and its commitment to enhancing product competitiveness through AI technology. The company’s efforts in expanding its market presence and improving operational efficiency have bolstered its position in the industry, particularly in serving micro and small enterprises.

Chanjet Information Technology Reports Strong Financial Growth in 2024
Mar 27, 2025

Chanjet Information Technology Co., Ltd. reported a significant increase in its financial performance for the year ended December 31, 2024, with revenue rising by 20% to RMB 959,273,000 and profit attributable to owners of the parent more than doubling to RMB 33,464,000. Despite the strong financial results, the board did not recommend the distribution of any final dividend for the year. The company’s improved profitability and revenue growth highlight its strengthened market position and operational efficiency, although the decision to withhold dividends may impact shareholder sentiment.

Chanjet Information Technology Announces Upcoming Board Meeting
Mar 14, 2025

Chanjet Information Technology Co., Ltd. has announced a board meeting scheduled for March 27, 2025, to consider and approve the audited annual results for the year ending December 31, 2024, and discuss the potential recommendation of a final dividend. This meeting is significant as it will determine the company’s financial performance and potential shareholder returns, impacting its market positioning and stakeholder interests.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.