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Microware Group Ltd.
(1985)
Select Model
Select Model
Rating:57Neutral
Price Target:
HK$3.50
▲(171.32% Upside)
Action:Reiterated
Date:08/01/26
The score is held back primarily by weak and volatile cash flow, despite generally acceptable profitability and a reasonable (though rising) leverage profile. Technicals are mildly supportive longer-term but show near-term softness, while valuation is a modest negative due to the high P/E, only partly offset by the dividend yield.
Positive Factors
Business model
Microware’s focus on enterprise IT solutions and professional services points to a B2B services model with durable commercial clients, repeatable project and services revenue, and opportunities for cross-sell of solutions—supporting stable demand over a multi-month horizon.
Negative Factors
Cash-flow volatility
A steep swing in operating cash flow and a ~63% FCF decline materially reduce the company’s short-term financial flexibility. Persistent cash-conversion swings raise refinancing and investment risk, making capital allocation and dividend sustainability uncertain.
Read all positive and negative factors
Positive Factors
Negative Factors
Business model
Microware’s focus on enterprise IT solutions and professional services points to a B2B services model with durable commercial clients, repeatable project and services revenue, and opportunities for cross-sell of solutions—supporting stable demand over a multi-month horizon.
Read all positive factors
Microware Group Ltd. (1985) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$891.00M
Dividend Yield3.37%
Average Volume (3M)151.40K
Price to Earnings (P/E)29.5
Beta (1Y)-0.19
Revenue Growth-12.76%
EPS Growth234.22%
CountryHK
Employees270
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.10
Shares Outstanding300,000,000
10 Day Avg. Volume259,000
30 Day Avg. Volume151,400
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)1.60
Price to Sales (P/S)0.28
P/FCF Ratio26.57
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Microware Group Ltd. Business Overview & Revenue Model
Company Description
As an investment holding company, Microware Group Limited delivers comprehensive information technology (IT) infrastructure solutions and managed services across Hong Kong. Its diverse client base includes government agencies, educational establis...
How the Company Makes Money
null...
Microware Group Ltd. Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
70
Positive
Cash Flow
45
Neutral
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.30B | 1.49B | 1.23B | 1.17B | 1.15B |
| Gross Profit | 172.44M | 188.26M | 144.96M | 121.57M | 132.62M |
| EBITDA | 47.00M | 39.15M | 57.59M | 45.17M | 51.67M |
| Net Income | 30.20M | 8.16M | 36.23M | 33.18M | 31.97M |
Balance Sheet | |||||
| Total Assets | 646.45M | 727.33M | 516.94M | 516.83M | 543.22M |
| Cash, Cash Equivalents and Short-Term Investments | 162.51M | 170.40M | 165.19M | 293.33M | 269.61M |
| Total Debt | 118.75M | 70.06M | 20.57M | 12.61M | 22.88M |
| Total Liabilities | 419.67M | 504.72M | 335.63M | 304.36M | 332.42M |
| Stockholders Equity | 226.78M | 222.62M | 181.31M | 212.47M | 211.76M |
Cash Flow | |||||
| Free Cash Flow | 13.66M | 79.19M | -24.86M | 74.92M | 43.77M |
| Operating Cash Flow | 14.13M | 86.78M | -24.62M | 77.21M | 45.97M |
| Investing Cash Flow | 4.24M | -60.99M | 4.26M | -1.48M | -1.38M |
| Financing Cash Flow | -90.80M | -24.67M | -68.10M | -52.06M | -42.56M |
Microware Group Ltd. Technical Analysis
Neutral
1.29
Price Trends
3.11
Negative
2.25
Positive
1.77
Positive
Market Momentum
>-0.01
Positive
45.45
Neutral
35.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1985, the sentiment is Neutral. The current price of 1.29 is below the 20-day moving average (MA) of 3.13, below the 50-day MA of 3.11, and below the 200-day MA of 1.77, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.45 is Neutral, neither overbought nor oversold. The STOCH value of 35.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1985.
Microware Group Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | HK$298.50M | 16.21 | 3.68% | 7.87% | -7.58% | -36.30% | |
64 Neutral | HK$501.37M | 3.43 | 10.45% | 2.52% | 13.62% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | HK$579.21M | 6.98 | 3.52% | 3.66% | 9.79% | -44.84% | |
60 Neutral | HK$318.23M | 3.97 | 3.70% | 9.12% | 13.15% | 197.79% | |
57 Neutral | HK$891.00M | 29.49 | 14.46% | 8.55% | -12.76% | 234.22% | |
45 Neutral | HK$950.00M | 116.56 | 2.39% | ― | 13.26% | 757.89% |
* Technology Sector Average
HK:1985
Microware Group Ltd.
2.97
1.41
90.38%
HK:1075
Capinfo Co., Ltd. Class H
1.73
-1.16
-40.16%
HK:1204
BoardWare Intelligence Technology Limited
1.90
0.42
28.38%
HK:1900
China ITS Holdings Co., Ltd.
0.19
-0.02
-7.50%
HK:0046
Computer & Technologies Holdings Ltd.
1.23
-0.37
-23.13%
HK:0771
Automated Systems Holdings Limited
0.69
-0.22
-24.26%
Microware Group Ltd. Corporate Events
Microware grants 6.6 million share options to incentivize key talent
Jul 28, 2026
Microware Group Limited has granted 6.6 million share options to three eligible participants under its share option scheme adopted in 2017, with each option entitling the holder to subscribe for one ordinary share at an exercise price of HK$3.162....
Microware Group Sets August AGM, Seeks 20% Share Issuance Mandate
Jul 27, 2026
Microware Group Limited has called its annual general meeting for 27 August 2026 in Hong Kong, where shareholders will review and adopt the audited consolidated financial statements for the year ended 31 March 2026. The agenda also includes reR...
Microware hires senior advisers to drive AI-led global expansion and M&A push
Jul 24, 2026
Microware Group Limited has appointed two high-profile consultants to support its global expansion and AI-driven strategy, underscoring its ambition to deepen its presence in advanced digital sectors. The company aims to leverage their expertise t...
Microware Extends Deadline for New Share Placing and Confirms Pricing Terms
Jul 23, 2026
Microware Group Limited has extended the long stop date for completing its placing of new shares under a general mandate, after agreeing a supplemental placing agreement with its placing agent. The deadline has been pushed from 27 July 2026 to 17 ...
Microware Group Plans HK$100 Million Share Placement to Fund AI Expansion
Jul 6, 2026
Microware Group Ltd. has entered into an agreement with Astrum Capital Management Ltd. to place up to 30 million new shares, equal to 10% of its existing share capital, at HK$3.35 per share. The price represents a small discount to recent market l...
Microware Profit Surges Despite Revenue Drop as Dividend Held Back
Jun 30, 2026
Microware Group Limited reported revenue of about HK$1.30 billion for the year ended 31 March 2026, a 12.8% decline from the prior year amid softer sales. Despite lower top-line performance, profit attributable to shareholders jumped to approximat...
Microware forecasts profit surge on AI-fuelled revenue growth
Jun 18, 2026
Microware Group Limited, a Hong Kong–listed technology-focused company, reported that its financial performance for the year ended 31 March 2026 is set to improve sharply on the back of AI-driven business growth. The group’s emphasis o...
Microware Group Sets Board Meeting to Approve FY2026 Results and Consider Dividend
Jun 17, 2026
Microware Group Limited has scheduled a board meeting for 30 June 2026 to review and approve the audited consolidated final results for the financial year ended 31 March 2026. The board will also consider whether to recommend a final dividend and ...
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.