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

• Market Cap: HK$2.90B
• Dividend Yield: N/A
• Average Volume (3M): 1.64M
• Price to Earnings (P/E): 34.3
• Beta (1Y): 0.50
• Revenue Growth: 12.46%
• EPS Growth: N/A
• Country: HK
• Employees: 982
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.15
• Shares Outstanding: 135,901,210
• 10 Day Avg. Volume: 61,140
• 30 Day Avg. Volume: 1,642,721
• PEG Ratio: 0.49
• Price to Book (P/B): 1.82
• Price to Sales (P/S): 1.72
• P/FCF Ratio: 18.25
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: HK$9.50 ▲(6.86% Upside)

Chanjet Information Technology Co., Ltd. shows strong financial performance with promising revenue growth and a robust balance sheet. However, challenges in operational efficiency and cash flow stability, combined with a high valuation, weigh on the overall score. Technical indicators suggest mixed momentum, further influencing the stock's attractiveness.

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

Company Description

Chanjet Information Technology Co., Ltd. is a leading provider of cloud-based financial and business management solutions in China. The company primarily serves small and medium-sized enterprises (SMEs) across various sectors, offering products such as accounting software, enterprise resource planning (ERP) systems, and online invoicing solutions. Chanjet aims to enhance operational efficiency for its clients through its innovative technology and user-friendly platforms, while also contributing to the digital transformation of the financial services industry.

How the Company Makes Money

Chanjet generates revenue primarily through subscription fees for its cloud-based software solutions, which provide businesses with essential tools for accounting, invoicing, and financial management. Additionally, the company earns income from value-added services, including data analytics, consulting, and technical support. Key revenue streams include recurring monthly or annual subscriptions, as well as one-time fees for specific services or upgrades. Strategic partnerships with financial institutions and technology providers further bolster its revenue, as these collaborations often lead to bundled offerings that enhance Chanjet's market reach and customer acquisition.

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

Summary

Chanjet Information Technology Co., Ltd. demonstrates strong revenue growth and improved net profitability. The balance sheet is robust with low leverage and a solid equity position. However, operational efficiency is challenged by negative EBIT and EBITDA margins, and cash flow stability is a concern despite positive free cash flow.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	989.50M	959.27M	800.62M	680.15M	590.32M	509.42M
Gross Profit	701.82M	692.05M	538.60M	413.61M	410.35M	425.98M
EBITDA	22.24M	-8.87M	37.75M	-248.23M	-222.31M	-18.07M
Net Income	76.86M	33.46M	15.88M	-212.09M	-185.07M	33.39M
Balance Sheet
Total Assets	1.81B	1.69B	1.59B	1.52B	1.62B	1.61B
Cash, Cash Equivalents and Short-Term Investments	1.22B	942.67M	1.04B	1.18B	1.30B	1.38B
Total Debt	12.39M	2.42M	6.76M	12.75M	1.96M	5.90M
Total Liabilities	872.18M	791.39M	715.92M	806.46M	700.96M	343.92M
Stockholders Equity	936.78M	903.27M	869.66M	712.31M	923.39M	1.27B
Cash Flow
Free Cash Flow	122.27M	90.23M	-43.16M	-162.45M	-99.83M	89.43M
Operating Cash Flow	125.73M	91.30M	-42.05M	-159.12M	-90.73M	90.52M
Investing Cash Flow	-53.18M	-378.56M	-65.69M	519.93M	364.26M	-214.76M
Financing Cash Flow	-7.24M	-7.88M	-7.43M	-7.18M	-27.84M	-95.41M

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

• Technical Analysis Sentiment: Neutral
• Last Price: 8.89
• 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:1588, the sentiment is Neutral. The current price of 8.89 is below the 20-day moving average (MA) of 9.49, above the 50-day MA of 8.77, and above the 200-day MA of 7.44, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 46.81 is Neutral, neither overbought nor oversold. The STOCH value of 55.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
1588	―	HK$2.90B	34.34	8.51%	―	12.46%	―
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1675	―	€8.20B	18.82	6.90%	2.91%	-17.90%	56.67%
3738	―	HK$12.54B	57.29	8.42%	―	22.86%	5105.88%
0268	―	$52.47B	-2,146.38	-0.26%	―	9.71%	84.42%
0909	―	HK$5.98B	-89.66	-1.31%	3.05%	-17.48%	83.80%
2013	―	$8.67B	-5.44	-55.81%	―	-34.07%	-29.27%

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

Chanjet’s Controlling Shareholder Reduces Stake to Enhance Liquidity

Chanjet Information Technology Co., Ltd. announced a decrease in shareholding by its controlling shareholder, Yonyou Network Technology Co., Ltd., which sold a portion of its shares to meet its development needs. Despite this disposal, Yonyou remains the majority shareholder and maintains confidence in Chanjet’s business operations. The transaction is expected to enhance the company’s shareholder base and liquidity without negatively impacting its operations.

The most recent analyst rating on (HK:1588) stock is a Buy with a HK$11.88 price target. To see the full list of analyst forecasts on Chanjet Information Technology Co., Ltd. Class H stock, see the HK:1588 Stock Forecast page.

Chanjet Information Technology Reports Positive Turnaround in H1 2025 Results

Chanjet Information Technology Co., Ltd. reported its interim results for the first half of 2025, showing a 7% increase in revenue to RMB 483,109,000 and a significant turnaround in profitability with a profit attributable to owners of the parent at RMB 33,513,000, compared to a loss in the same period last year. Despite the improved financial performance, the board did not recommend the distribution of any interim dividend, which may impact investor sentiment.

The most recent analyst rating on (HK:1588) stock is a Buy with a HK$11.88 price target. To see the full list of analyst forecasts on Chanjet Information Technology Co., Ltd. Class H stock, see the HK:1588 Stock Forecast page.

Chanjet Information Technology Reschedules Board Meeting to Discuss Interim Results

Chanjet Information Technology Co., Ltd. has announced a further change in the date of its board meeting, now rescheduled to 26 August 2025. This meeting will address the company’s unaudited interim results for the first half of 2025, indicating a focus on financial transparency and operational updates.

The most recent analyst rating on (HK:1588) stock is a Buy with a HK$11.88 price target. To see the full list of analyst forecasts on Chanjet Information Technology Co., Ltd. Class H stock, see the HK:1588 Stock Forecast page.

Chanjet Information Technology Reschedules Board Meeting to Discuss Interim Results

Chanjet Information Technology Co., Ltd. has announced a change in the date of its upcoming board meeting, initially scheduled for August 29, 2025, now moved to August 28, 2025. This meeting is intended to consider and approve the unaudited interim results for the first half of 2025, among other matters, which could impact the company’s operational strategies and stakeholder interests.

The most recent analyst rating on (HK:1588) stock is a Buy with a HK$11.88 price target. To see the full list of analyst forecasts on Chanjet Information Technology Co., Ltd. Class H stock, see the HK:1588 Stock Forecast page.

Chanjet Information Technology Schedules Board Meeting for Interim Results

Chanjet Information Technology Co., Ltd. has announced a board meeting scheduled for August 29, 2025, to discuss and approve the unaudited interim results for the first half of the year. This meeting is crucial for stakeholders as it will provide insights into the company’s financial performance and strategic direction for the upcoming months.

The most recent analyst rating on (HK:1588) stock is a Buy with a HK$11.54 price target. To see the full list of analyst forecasts on Chanjet Information Technology Co., Ltd. Class H stock, see the HK:1588 Stock Forecast page.