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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:1588

Chanjet Information Technology Co., Ltd. Class H

(1588)

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Neutral 64 (OpenAI - 4o)
Rating:64Neutral
Price Target:
HK$9.50
▲(17.87% 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.
Positive Factors
Revenue Growth
Sustained revenue growth at 19.8% indicates robust demand for Chanjet's products, enhancing its market position and supporting long-term business expansion.
Balance Sheet Health
A strong balance sheet with minimal leverage provides financial stability and flexibility, allowing Chanjet to invest in growth opportunities and weather economic fluctuations.
Gross Profit Margin
An improved gross profit margin of 72.1% reflects efficient cost management and pricing power, which can lead to better profitability and competitive advantage over time.
Negative Factors
Operational Efficiency
Negative EBIT and EBITDA margins suggest inefficiencies in operations, which could hinder profitability and require strategic adjustments to improve cost structures.
Cash Flow Stability
Inconsistent cash flow relative to earnings indicates potential volatility in cash generation, which may impact the company's ability to fund operations and growth initiatives reliably.
Net Profit Margin
While net profit margin improved, it remains low, suggesting limited profitability. Enhancing this margin is crucial for long-term financial health and shareholder returns.

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 Company Limited engages in the cloud service and software businesses in Mainland China. The company offers Chanjet Good Accountant, a digital intelligent finance and taxation SaaS product that integrates invoice, finance, tax, fee, bank, and filing for micro and small scale enterprises; Chanjet Easy Accounting Agent, a digital intelligent finance and taxation SaaS product for account agencies; Chanjet Reimbursement, a reimbursement SaaS product; Chanjet Good Business, a marketing-based purchase-sale-stock SaaS product for micro-commerce and retail enterprises; T+Cloud, an integrated SaaS product for small enterprises in industry; and Chanjet Intelligent+, a SaaS product for small enterprises in commerce, retail and service industries. It is also involved in the technical development, consulting, transfer, service, and training of computer software, hardware, and external devices; sale of typing paper, computer consumables, computer software, and hardware and external devices; provision of database and internet information services; agency bookkeeping; and design, manufacturing, agency, and publication of advertisements. The company was formerly known as Chanjet Software Company Limited. Chanjet Information Technology Company Limited was founded in 2005 and is headquartered in Beijing, China. Chanjet Information Technology Company Limited is a subsidiary of Yonyou Network Technology Co., Ltd.
How the Company Makes MoneyChanjet 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
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue989.50M959.27M800.62M680.15M590.32M509.42M
Gross Profit701.82M692.05M538.60M413.61M410.35M425.98M
EBITDA22.24M-8.87M37.75M-248.23M-222.31M-18.07M
Net Income76.86M33.46M15.88M-212.09M-185.07M33.39M
Balance Sheet
Total Assets1.81B1.69B1.59B1.52B1.62B1.61B
Cash, Cash Equivalents and Short-Term Investments1.22B942.67M1.04B1.18B1.30B1.38B
Total Debt12.39M2.42M6.76M12.75M1.96M5.90M
Total Liabilities872.18M791.39M715.92M806.46M700.96M343.92M
Stockholders Equity936.78M903.27M869.66M712.31M923.39M1.27B
Cash Flow
Free Cash Flow122.27M90.23M-43.16M-162.45M-99.83M89.43M
Operating Cash Flow125.73M91.30M-42.05M-159.12M-90.73M90.52M
Investing Cash Flow-53.18M-378.56M-65.69M519.93M364.26M-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
Negative
Last Price8.06
Price Trends
50DMA
8.84
Negative
100DMA
8.51
Negative
200DMA
7.75
Positive
Market Momentum
MACD
-0.18
Positive
RSI
39.96
Neutral
STOCH
25.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1588, the sentiment is Negative. The current price of 8.06 is below the 20-day moving average (MA) of 8.38, below the 50-day MA of 8.84, and above the 200-day MA of 7.75, indicating a neutral trend. The MACD of -0.18 indicates Positive momentum. The RSI at 39.96 is Neutral, neither overbought nor oversold. The STOCH value of 25.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1588.

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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
HK$2.63B31.138.51%12.46%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
61
Neutral
HK$7.21B16.536.90%3.29%-17.90%56.67%
56
Neutral
HK$10.90B49.728.42%22.86%5105.88%
50
Neutral
HK$46.83B-1,915.94-0.26%9.71%84.42%
43
Neutral
HK$5.76B-86.31-1.31%3.24%-17.48%83.80%
40
Underperform
HK$7.54B-4.52-55.81%-34.07%-29.27%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1588
Chanjet Information Technology Co., Ltd. Class H
8.06
2.66
49.26%
HK:0268
Kingdee International Software Group Co
13.22
4.19
46.40%
HK:3738
Vobile Group
4.40
1.01
29.79%
HK:2013
Weimob
1.92
0.39
25.49%
HK:1675
AsiaInfo Technologies Limited
7.67
2.18
39.78%
HK:0909
Ming Yuan Cloud Group Holdings Limited
3.09
0.45
17.05%

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

Chanjet Information Technology Co., Ltd. Announces RMB 70 Million Loan to Yonyou
Dec 4, 2025

Chanjet Information Technology Co., Ltd. has announced a loan agreement with its controlling shareholder, Yonyou, providing a loan of RMB 70 million for a one-year term starting December 2025. This transaction is classified as both a discloseable and connected transaction under the Hong Kong Listing Rules, requiring reporting and announcement but exempt from shareholder approval. The loan is intended to supplement Yonyou’s working capital, with an interest rate of 3% per annum and no collateral required.

Chanjet Information Technology Enhances Remuneration Governance
Nov 27, 2025

Chanjet Information Technology Co., Ltd. has revised the working rules for its Remuneration and Appraisal Committee to enhance corporate governance and establish a transparent remuneration system. The committee, comprising mainly independent non-executive directors, is tasked with reviewing and recommending remuneration policies for directors and senior management, ensuring alignment with industry standards and corporate goals.

Chanjet Announces Share Repurchase and Capital Reserve Utilization
Nov 27, 2025

Chanjet Information Technology Co., Ltd. has announced a repurchase and cancellation of domestic shares under its 2020 Employee Share Ownership Scheme, resulting in a reduction of its registered capital. This move aims to provide an exit mechanism for scheme participants. Additionally, the company plans to use its capital reserve to offset accumulated losses, as approved in recent board and shareholder meetings. These actions are expected to streamline the company’s capital structure and address financial losses, potentially impacting its financial stability and stakeholder interests.

Chanjet Information Technology Updates Audit Committee Rules to Enhance Governance
Nov 27, 2025

Chanjet Information Technology Co., Ltd. has revised its working rules for the Audit Committee of the Board to strengthen decision-making and corporate governance. The updated rules aim to enhance communication between the company and external audit firms, improve internal audit monitoring, and assess risk management systems, thereby potentially impacting the company’s operational efficiency and stakeholder confidence.

Chanjet Information Technology Updates Nomination Committee Rules
Nov 27, 2025

Chanjet Information Technology Co., Ltd. has revised its working rules for the Nomination Committee of the Board to standardize procedures for selecting directors and senior management, thereby enhancing corporate governance. The committee, comprising mainly independent non-executive directors, is tasked with advising on criteria and procedures for selection, reviewing candidates, and ensuring diverse perspectives and skills are represented, which could impact the company’s strategic direction and stakeholder confidence.

Chanjet IT Co. Announces EGM Results, All Resolutions Passed
Nov 27, 2025

Chanjet Information Technology Co., Ltd. announced the results of its Extraordinary General Meeting (EGM) and class meetings held on November 27, 2025. All proposed resolutions were passed, with significant shareholder participation, indicating strong support for the company’s strategic decisions, including the repurchase and cancellation of shares under the Employee Share Ownership Scheme.

Chanjet Information Technology to Hold EGM for Key Resolutions
Nov 11, 2025

Chanjet Information Technology Co., Ltd. has announced an Extraordinary General Meeting (EGM) scheduled for November 27, 2025, to address several key resolutions. The agenda includes the approval of using capital reserves to offset losses, the repurchase and cancellation of domestic shares under the Employee Share Ownership Scheme, and amendments to the Articles of Association and various procedural rules. These measures are aimed at improving the company’s financial structure and governance, potentially impacting stakeholders by enhancing operational efficiency and aligning corporate governance with strategic objectives.

Chanjet Information Technology Announces H Shareholders’ Class Meeting with Key Resolutions
Nov 11, 2025

Chanjet Information Technology Co., Ltd. has announced the upcoming H Shareholders’ Class Meeting scheduled for November 27, 2025, in Beijing. The meeting will address several key resolutions, including the proposed repurchase and cancellation of Domestic Shares under the Employee Share Ownership Scheme, a reduction of registered capital, and amendments to the Articles of Association and Rules of Procedures for General Meetings. These resolutions, if passed, could significantly impact the company’s capital structure and governance, potentially affecting its market positioning and shareholder value.

Chanjet Information Technology Announces Key Shareholder Meeting
Nov 11, 2025

Chanjet Information Technology Co., Ltd. has announced a Domestic Shareholders’ Class Meeting scheduled for November 27, 2025, to discuss and vote on several key resolutions. These include the proposed repurchase and cancellation of Domestic Shares under the Employee Share Ownership Scheme, amendments to the Articles of Association, and changes to the Rules of Procedures for General Meetings. The outcomes of these resolutions could significantly impact the company’s governance structure and shareholder relations.

Chanjet Information Technology Announces Strategic Share Repurchase and Capital Adjustments
Nov 5, 2025

Chanjet Information Technology Co., Ltd. has announced a series of strategic initiatives, including the repurchase and cancellation of domestic shares under its Employee Share Ownership Scheme, aiming to reduce registered capital and enhance operational flexibility. These moves, alongside proposed amendments to its Articles of Association and the use of capital reserves to offset losses, are designed to optimize the company’s financial structure and align with market practices, potentially impacting stakeholders by improving the company’s market positioning and financial health.

Chanjet Information Technology’s Strategic Focus Yields Financial Turnaround in Q3 2025
Oct 30, 2025

Chanjet Information Technology Co., Ltd. reported a significant financial turnaround in the third quarter of 2025, with a net profit of RMB42.55 million, compared to a net loss in the previous year. This improvement is attributed to the company’s strategic focus on cloud services, which saw a 9% increase in revenue, and efficient operational practices that reduced costs. The company also expanded its market presence and product innovation, particularly in AI applications, to support the digital transformation of MSEs, thereby enhancing its competitive positioning in the industry.

Chanjet’s Controlling Shareholder Reduces Stake to Enhance Liquidity
Sep 17, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Oct 23, 2025