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Microware Group Ltd. (HK:1985)
:1985
Hong Kong Market
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Microware Group Ltd. (1985) AI Stock Analysis

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HK:1985

Microware Group Ltd.

(1985)

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Neutral 58 (OpenAI - 4o)
Rating:58Neutral
Price Target:
HK$1.50
▲(20.00% Upside)
Microware Group Ltd. has a solid financial foundation with strong cash flow generation and a stable balance sheet. However, the stock is currently experiencing bearish technical indicators, and the high P/E ratio suggests overvaluation. The attractive dividend yield provides some compensation for the valuation concerns.

Microware Group Ltd. (1985) vs. iShares MSCI Hong Kong ETF (EWH)

Microware Group Ltd. Business Overview & Revenue Model

Company DescriptionMicroware Group Limited, an investment holding company, provides information technology (IT) infrastructure solutions and IT managed services for the government, educational institutions, public bodies, non-profits organizations, and commercial organizations in Hong Kong. The company offers consultancy and advisory; and hardware and software procurement services, as well as cyber securities training programs. In addition, it engages in the management and maintenance of the IT infrastructure solutions. The company was incorporated in 2016 and is headquartered in Kwun Tong, Hong Kong. Microware Group Limited is a subsidiary of Microware International Holdings Limited.
How the Company Makes MoneyMicroware Group Ltd. generates revenue through several key streams. Primarily, the company earns money by licensing its software products to manufacturers of embedded systems, charging clients for the use of its operating systems and development tools. Additionally, the company offers professional services, including technical support, consulting, and training, which further contribute to its revenue. Strategic partnerships with hardware manufacturers and technology integrators allow Microware to enhance its market reach and provide integrated solutions, thereby increasing its sales opportunities. The company may also engage in custom software development projects, providing tailored solutions for specific client needs, which can add significant value to its revenue model.

Microware Group Ltd. Financial Statement Overview

Summary
Microware Group Ltd. demonstrates moderate financial health with consistent revenue growth and strong cash flow generation. The company maintains a stable balance sheet with low leverage, though profitability margins have faced pressure. The overall financial position is solid, with opportunities for improving operational efficiency and profitability.
Income Statement
65
Positive
Microware Group Ltd. has shown consistent revenue growth over the years, with a recent growth rate of 2.4%. However, profitability margins such as net profit margin and EBIT margin have declined, indicating pressure on operational efficiency. The gross profit margin has improved slightly, suggesting better cost management. Overall, the income statement reflects moderate growth with some profitability challenges.
Balance Sheet
70
Positive
The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.31, indicating low leverage and financial stability. Return on equity has decreased to 3.66%, reflecting reduced profitability. The equity ratio remains strong, suggesting a solid capital structure. Overall, the balance sheet is stable with low financial risk.
Cash Flow
75
Positive
Microware Group Ltd. has significantly improved its free cash flow, with a growth rate of over 1000%, indicating strong cash generation capabilities. The operating cash flow to net income ratio is positive, reflecting efficient cash conversion. However, the free cash flow to net income ratio has decreased, suggesting potential reinvestment or operational challenges. Overall, the cash flow statement shows robust cash generation with some areas for improvement.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.46B1.49B1.23B1.17B1.15B1.11B
Gross Profit154.76M188.26M144.96M121.57M132.62M142.03M
EBITDA53.31M39.15M57.59M45.17M51.67M64.97M
Net Income36.88M8.16M36.23M33.18M31.97M47.33M
Balance Sheet
Total Assets636.95M727.33M516.94M516.83M543.22M489.47M
Cash, Cash Equivalents and Short-Term Investments89.72M170.40M165.19M293.33M269.61M267.57M
Total Debt139.24M70.06M20.57M12.61M22.88M7.27M
Total Liabilities445.70M504.72M335.63M304.36M332.42M268.65M
Stockholders Equity191.25M222.62M181.31M212.47M211.76M221.79M
Cash Flow
Free Cash Flow6.82M79.19M-24.86M74.92M43.77M82.99M
Operating Cash Flow10.09M86.78M-24.62M77.21M45.97M86.47M
Investing Cash Flow-91.72M-60.99M4.26M-1.48M-1.38M6.84M
Financing Cash Flow35.88M-24.67M-68.10M-52.06M-42.56M-67.72M

Microware Group Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.25
Price Trends
50DMA
1.48
Negative
100DMA
1.49
Negative
200DMA
1.36
Negative
Market Momentum
MACD
-0.06
Positive
RSI
20.99
Positive
STOCH
5.79
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1985, the sentiment is Negative. The current price of 1.25 is below the 20-day moving average (MA) of 1.40, below the 50-day MA of 1.48, and below the 200-day MA of 1.36, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 20.99 is Positive, neither overbought nor oversold. The STOCH value of 5.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1985.

Microware Group Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
HK$723.52M3.966.75%6.96%7.39%2.23%
70
Outperform
HK$378.58M12.855.83%7.10%-1.26%-10.80%
64
Neutral
HK$910.00M42.841.79%2.42%9.05%
64
Neutral
HK$750.33M4.916.77%3.45%5.84%94.89%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
58
Neutral
HK$390.00M43.194.04%8.00%20.83%-75.45%
46
Neutral
HK$1.20B1,714.290.21%1.52%-83.72%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1985
Microware Group Ltd.
1.25
0.02
1.63%
HK:1075
Capinfo Co., Ltd. Class H
3.14
1.04
49.31%
HK:1204
BoardWare Intelligence Technology Limited
2.40
-0.37
-13.36%
HK:1522
BII Railway Transportation Technology Holdings Co., Ltd.
0.34
0.10
41.67%
HK:0046
Computer & Technologies Holdings Ltd.
1.55
-0.15
-8.82%
HK:0771
Automated Systems Holdings Limited
0.87
0.24
38.10%

Microware Group Ltd. Corporate Events

Microware Group Faces Delay in 2025 Annual Results Due to Expansion Challenges
Oct 14, 2025

Microware Group Limited announced a delay in the publication of its 2025 Annual Results due to challenges in collecting necessary information from suppliers, creditors, and investees. The delay is attributed to the company’s business expansion into Mainland China and the need for additional time to complete due diligence and valuation processes. To prevent future delays, the company plans to commence valuation work earlier, improve communication, and inform auditors of new business developments in advance.

The most recent analyst rating on (HK:1985) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on Microware Group Ltd. stock, see the HK:1985 Stock Forecast page.

Microware Group Announces AGM Results and Special Dividend
Aug 29, 2025

Microware Group Limited announced the results of its Annual General Meeting held on August 29, 2025, where all proposed resolutions were passed with overwhelming support. Key resolutions included the re-election of directors, the re-appointment of auditors, and the approval of a special dividend payment of HK$0.10 per share. This decision reflects the company’s robust financial health and commitment to returning value to its shareholders.

The most recent analyst rating on (HK:1985) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Microware Group Ltd. stock, see the HK:1985 Stock Forecast page.

Microware Group Limited Grants 15 Million Share Options
Aug 15, 2025

Microware Group Limited announced the grant of 15,000,000 share options to five eligible participants under its Share Option Scheme. This move is part of the company’s strategic initiatives to incentivize and retain key personnel, potentially impacting its operational dynamics and market positioning positively.

Microware Group Announces AGM Postponement and Special Dividend
Aug 14, 2025

Microware Group Limited has announced a postponement of its Annual General Meeting (AGM) to 29 August 2025. Additionally, the company plans to declare and pay a one-off special dividend of HK$0.10 per ordinary share to shareholders, as approved by the board of directors. This move is likely to impact shareholder value positively and reflects the company’s commitment to returning value to its investors.

Microware Group Limited Announces Special Cash Dividend
Aug 14, 2025

Microware Group Limited has announced a one-off special cash dividend of HKD 0.1 per share, set to be paid out of the company’s share premium account. The dividend will be paid on September 19, 2025, with the record date set for September 8, 2025. This move is likely to impact the company’s shareholders positively, offering them a direct financial benefit. The announcement reflects the company’s current financial strategy and may enhance its attractiveness to investors.

Microware Group Proposes Special Dividend to Reward Shareholders
Aug 14, 2025

Microware Group Limited has announced a proposed one-off special dividend of HK$0.10 per share, amounting to approximately HK$30 million, subject to shareholder approval at the upcoming annual general meeting. The company aims to reward shareholders for their support, leveraging its strong financial reserves and cash flow, without impacting its financial position or share capital structure.

Microware Group Ltd. Postpones AGM and Adjusts Register Closure Dates
Aug 12, 2025

Microware Group Limited has announced the postponement of its Annual General Meeting (AGM) from August 22, 2025, to August 29, 2025, due to adjustments in work arrangements. Consequently, the period for closure of the register of members has also been changed to ensure shareholder eligibility for the AGM. This adjustment reflects the company’s commitment to maintaining transparent communication with its stakeholders while ensuring operational flexibility.

Microware Group Announces Leadership Changes
Aug 11, 2025

Microware Group Limited announced the resignation of Mr. Huang Tianlei as an executive director, effective August 11, 2025, as he plans to focus more on the company’s operations in his new role as vice president. Concurrently, Mr. Wang Guangbo, the current executive director and chairman, will replace Mr. Huang as the authorised representative, reflecting a strategic internal shift aimed at strengthening the company’s leadership structure.

Microware Group Limited Announces Board Composition and Roles
Aug 11, 2025

Microware Group Limited, incorporated in the Cayman Islands, has announced the composition of its board of directors and their roles within the company. The board consists of executive, non-executive, and independent non-executive directors, with Mr. Wang Guangbo serving as the Chairman. The announcement also details the membership of the board committees, highlighting the leadership roles within the audit, remuneration, and nomination committees. This organizational update is crucial for stakeholders as it outlines the governance structure and leadership roles that will guide the company’s strategic direction.

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: Nov 05, 2025