Microware Group Ltd. (1985) AI Stock Analysis

• Market Cap: HK$384.00M
• Dividend Yield: 8.55%
• Average Volume (3M): 151.40K
• Price to Earnings (P/E): 48.1
• Beta (1Y): -0.11
• Revenue Growth: -1.86%
• EPS Growth: -105.19%
• Country: HK
• Employees: 273
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): <0.01
• Shares Outstanding: 300,000,000
• 10 Day Avg. Volume: 259,000
• 30 Day Avg. Volume: 151,400
• PEG Ratio: -0.58
• Price to Book (P/B): 1.60
• Price to Sales (P/S): 0.24
• P/FCF Ratio: 4.49
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: HK$1.50 ▲(16.28% Upside)
• Action: Reiterated Date: 03/24/26
• Date: Action: Reiterated 03/24/26

The score is held back mainly by the sharp 2025 profitability/ROE decline and weak technical momentum (negative MACD, RSI below 50, price below key moving averages). These are partly offset by strong 2025 operating/free cash flow recovery, a still-manageable leverage profile, and an elevated dividend yield despite a high P/E.

Positive Factors

Free cash flow recovery

A strong free cash flow rebound to ~79.2m after negative FCF in 2024 indicates the business can internally fund operations, dividends and selective investments. Over 2-6 months this improves financial flexibility, supports capital allocation and reduces dependence on external financing if cash generation holds.

Negative Factors

Sharp ROE and margin decline

A dramatic drop in ROE and net margin signals weakened profitability and returns on invested capital. Structurally lower margins constrain reinvestment, reduce retained earnings growth, and can force tougher capital-allocation choices; persistent margin pressure would impair medium-term value creation.

Microware Group Ltd. Business Overview & Revenue Model

Company Description

Microware 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 or...

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Microware 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 or...

Microware Group Ltd. Financial Statement Overview

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	1.43B	1.49B	1.23B	1.17B	1.15B	1.11B
Gross Profit	196.13M	188.26M	144.96M	121.57M	132.62M	142.03M
EBITDA	36.35M	39.15M	57.59M	45.17M	51.67M	64.97M
Net Income	-1.59M	8.16M	36.23M	33.18M	31.97M	47.33M
Balance Sheet
Total Assets	576.39M	727.33M	516.94M	516.83M	543.22M	489.47M
Cash, Cash Equivalents and Short-Term Investments	128.62M	170.40M	165.19M	293.33M	269.61M	267.57M
Total Debt	131.29M	70.06M	20.57M	12.61M	22.88M	7.27M
Total Liabilities	385.30M	504.72M	335.63M	304.36M	332.42M	268.65M
Stockholders Equity	191.09M	222.62M	181.31M	212.47M	211.76M	221.79M
Cash Flow
Free Cash Flow	37.41M	79.19M	-24.86M	74.92M	43.77M	82.99M
Operating Cash Flow	44.90M	86.78M	-24.62M	77.21M	45.97M	86.47M
Investing Cash Flow	47.49M	-60.99M	4.26M	-1.48M	-1.38M	6.84M
Financing Cash Flow	-72.44M	-24.67M	-68.10M	-52.06M	-42.56M	-67.72M

Microware Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 1.29 is below the 20-day moving average (MA) of 1.33, below the 50-day MA of 1.33, and below the 200-day MA of 1.39, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 43.40 is Neutral, neither overbought nor oversold. The STOCH value of 2.78 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1522	72 Outperform	HK$629.14M	5.80	6.59%	7.27%	7.39%	2.23%
0046	62 Neutral	HK$315.48M	21.21	5.85%	7.24%	-1.26%	-10.80%
0771	62 Neutral	HK$663.15M	3.67	6.63%	3.66%	5.84%	94.89%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1204	56 Neutral	HK$905.00M	191.08	0.21%	―	1.52%	-83.72%
1985	51 Neutral	HK$384.00M	48.09	-0.77%	8.55%	-1.86%	-105.19%
1075	51 Neutral	HK$828.85M	14.63	1.74%	2.52%	8.90%	―

Microware Group Ltd. Corporate Events