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

• Market Cap: HK$2.18B
• Dividend Yield: N/A
• Average Volume (3M): 38.89K
• Price to Earnings (P/E): 61.6
• Beta (1Y): 0.60
• Revenue Growth: 17.66%
• EPS Growth: 97.73%
• Country: HK
• Employees: 982
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Application
• EPS (TTM): 0.15
• Shares Outstanding: 82,500,000
• 10 Day Avg. Volume: 50,900
• 30 Day Avg. Volume: 38,886
• PEG Ratio: 0.15
• Price to Book (P/B): 2.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 41.45
• 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$11.88
• Price Target Upside: 70.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• 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 Business Overview & Revenue Model

Company Description

Chanjet 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 Money

Chanjet 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

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

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

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
959.27M	800.62M	680.15M	590.32M	509.42M
	Gross Profit
692.05M	538.60M	413.61M	410.35M	425.98M
	EBIT
-9.70M	0.00	-252.55M	-225.55M	-21.27M
	EBITDA
-8.87M	37.75M	-248.23M	-222.31M	47.23M
	Net Income Common Stockholders
33.46M	15.88M	-212.09M	-185.07M	33.39M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
942.67M	1.04B	1.18B	1.30B	1.39B
	Total Assets
1.69B	1.59B	1.52B	1.62B	1.61B
	Total Debt
2.42M	6.76M	12.75M	1.96M	5.90M
	Net Debt
-931.55M	-880.09M	-1.16B	-1.19B	-1.28B
	Total Liabilities
791.39M	715.92M	806.46M	700.96M	343.92M
	Stockholders Equity
903.27M	869.66M	712.31M	923.39M	1.27B
Cash Flow		Free Cash Flow
0.00	-43.16M	-162.45M	-99.83M	89.43M
	Operating Cash Flow
0.00	-42.05M	-159.12M	-90.73M	90.52M
	Investing Cash Flow
0.00	-65.69M	519.93M	364.26M	-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 Price: 6.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3888	67 Neutral	HK$46.77B	26.57	7.07%	0.42%	19.66%	169.54%
1588	65 Neutral	HK$2.18B	61.61	3.79%	―	17.66%	97.73%
Sector *	62 Neutral	$11.80B	10.31	-7.45%	2.91%	7.43%	-7.78%

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

Chanjet Information Technology Announces AGM and Key Resolutions

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

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

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

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

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

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.