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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)

Rating:66Neutral
Price Target:
HK$2.00
▲(21.21% Upside)
Microware Group Ltd. shows moderate financial health with strong cash flow and a stable balance sheet, but faces profitability challenges. The technical analysis indicates positive momentum, though caution is advised due to potential overvaluation as suggested by the high P/E ratio. The absence of earnings call and corporate events data limits further insights.

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

Microware Group Ltd. Business Overview & Revenue Model

Company DescriptionMicroware Group Ltd. is a technology company established in 1985, specializing in providing software solutions for embedded systems. The company operates primarily in the sectors of telecommunications, automotive, and industrial automation, offering a range of products including real-time operating systems, middleware, and development tools designed to optimize performance and reliability in embedded applications.
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
Positive
Last Price1.65
Price Trends
50DMA
1.56
Positive
100DMA
1.45
Positive
200DMA
1.35
Positive
Market Momentum
MACD
0.02
Negative
RSI
56.20
Neutral
STOCH
38.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1985, the sentiment is Positive. The current price of 1.65 is above the 20-day moving average (MA) of 1.58, above the 50-day MA of 1.56, and above the 200-day MA of 1.35, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 56.20 is Neutral, neither overbought nor oversold. The STOCH value of 38.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1985.

Microware Group Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
HK$388.29M13.395.78%6.87%1.39%-11.89%
66
Neutral
HK$486.00M55.004.04%2.88%20.83%-75.53%
65
Neutral
HK$692.06M4.136.11%7.38%1.20%-3.85%
64
Neutral
€794.08M-1.19%2.49%2.17%80.59%
61
Neutral
HK$850.37M5.706.70%2.94%0.53%13.71%
55
Neutral
HK$795.00M836.840.28%-9.70%-78.89%
50
Neutral
C$3.52B0.80-5.03%7.64%16.88%-2.22%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1985
Microware Group Ltd.
1.65
0.34
25.95%
HK:0771
Automated Systems Holdings Limited
1.02
0.50
96.15%
HK:0046
Computer & Technologies Holdings Ltd.
1.66
-0.17
-9.29%
HK:1522
BII Railway Transportation Technology Holdings Co., Ltd.
0.34
0.07
25.93%
HK:1204
BoardWare Intelligence Technology Limited
1.59
-1.54
-49.20%
HK:1075
Capinfo Co., Ltd. Class H
3.05
0.93
43.73%

Microware Group Ltd. Corporate Events

Microware Group Considers Special Dividend Amid Shareholder Feedback
Aug 4, 2025

Microware Group Limited has announced that its Board of Directors will convene on August 14, 2025, to consider and approve the recommendation for a special dividend to its shareholders. The decision follows feedback from shareholders regarding the company’s financial position. The approval of the special dividend is contingent upon the Board’s decision and subsequent shareholder approval at the annual general meeting. Shareholders and prospective investors are advised to exercise caution in dealing with the company’s securities.

Microware Group Limited Announces 2025 Annual General Meeting
Jul 29, 2025

Microware Group Limited has announced its upcoming Annual General Meeting scheduled for August 22, 2025, in Hong Kong. The meeting will address ordinary resolutions, including the adoption of the company’s audited financial statements, the re-election of directors, and the re-appointment of auditors. Additionally, a special resolution will be considered to authorize the company’s directors to issue additional shares, enhancing the company’s flexibility in capital management.

Microware Group Announces Executive Leadership Changes
Jul 10, 2025

Microware Group Limited has announced a significant change in its executive team with the resignation of Ms. Chan Wai Hing Gloria from her roles as Chief Financial Officer, Company Secretary, Authorised Representative, and Process Agent, effective 11 July 2025. Ms. Chan will continue to serve as a consultant for the company. The board has appointed Mr. Fok Wai Hung, who brings over 20 years of experience in auditing, accounting, and financial management, to fill these roles. This transition marks a strategic shift in the company’s leadership, potentially impacting its operational dynamics and stakeholder relations.

Microware Group Reports Revenue Growth but Decline in Profit for 2025
Jul 8, 2025

Microware Group Limited reported a significant increase in revenue for the year ending March 31, 2025, with a total of approximately HK$1,491.4 million, marking a 20.8% rise from the previous year. However, the company’s profit and total comprehensive income saw a sharp decline of 82.3%, amounting to HK$6.4 million, leading the board to decide against recommending a final dividend payment for the year. This financial performance highlights challenges in maintaining profitability despite revenue growth, impacting the company’s financial strategy and shareholder returns.

Microware Group Announces Trading Suspension Pending Annual Results
Jul 2, 2025

Microware Group Limited has announced a temporary suspension of trading in its shares on the Hong Kong Stock Exchange. This suspension, effective from July 2, 2025, is due to the pending publication of the company’s annual results for the fiscal year ending March 31, 2025. The move is likely to impact stakeholders as they await the financial disclosures, which are crucial for assessing the company’s performance and future prospects.

Microware Group Announces Delay in 2025 Annual Results and Trading Suspension
Jun 30, 2025

Microware Group Limited has announced a delay in the publication of its 2025 annual results due to the need for additional time to collect and collate necessary financial information and complete audit procedures. As a result, the company’s board meeting has been postponed, and trading of its shares will be suspended starting 2 July 2025 until the results are published. This delay may impact the company’s compliance with listing rules and could affect shareholder and investor confidence.

Microware Group Enhances Governance with New Nomination Committee Appointment
Jun 18, 2025

Microware Group Limited, a company incorporated in the Cayman Islands, has announced the appointment of Ms. Lan Jia as a member of its Nomination Committee, effective from June 12, 2025. This appointment reflects the company’s ongoing efforts to strengthen its governance structure, with Ms. Lan joining the committee alongside three other members, under the leadership of Mr. Wang Guangbo.

Microware Group Ltd. Announces Board Composition and Roles
Jun 18, 2025

Microware Group Ltd. 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 specific members serving on the audit, remuneration, and nomination committees. This announcement provides clarity on the governance structure of the company, which is crucial for stakeholders in assessing the company’s management and operational oversight.

Microware Group Ltd. Enhances Governance with Revised Nomination Committee Terms
Jun 18, 2025

Microware Group Limited has revised the terms of reference for its Nomination Committee, emphasizing the inclusion of a majority of independent non-executive directors and at least one director of a different gender. This move is aimed at enhancing governance and diversity within the company’s leadership structure. The committee will meet at least once a year, with resolutions requiring more than half of the attending members’ approval, reflecting a commitment to structured and transparent decision-making processes.

Microware Group Schedules Board Meeting for Financial Results and Dividend Consideration
Jun 16, 2025

Microware Group Limited has announced a board meeting scheduled for June 30, 2025, to approve the audited consolidated final results for the year ending March 31, 2025, and to consider a final dividend payment. This meeting is significant as it will influence the company’s financial strategies and potentially impact shareholder returns.

Microware Group’s Cash Offer Concludes with Significant Share Acceptance
Jun 2, 2025

Microware Group Limited, in collaboration with Weiye Holdings Group Limited, has announced the closure of a voluntary unconditional cash offer made by Astrum Capital Management Limited to acquire all issued shares of Microware Group, excluding those already owned by the offeror and its associates. The offer, which became unconditional on May 19, 2025, closed on June 2, 2025, with valid acceptances for approximately 24.93% of the company’s issued share capital. Settlement for the offer shares will occur within seven business days following the completion of necessary documentation.

Microware Group’s Ownership Structure Shifts with Successful Cash Offer
May 19, 2025

Microware Group Limited has announced that a voluntary conditional cash offer by Astrum Capital Management Limited, on behalf of Weiye Holdings Group Limited, has become unconditional. The Offeror and its concert parties now hold over 55% of the company’s voting rights, following valid acceptances representing approximately 24.87% of the issued share capital. This development marks a significant shift in the company’s ownership structure, potentially impacting its strategic direction and stakeholder interests.

Microware Group Limited Dispatches Revised Acceptance Form for Share Acquisition Offer
May 6, 2025

Microware Group Limited has announced the dispatch of a revised form of acceptance related to a voluntary conditional cash offer by Astrum Capital Management Limited, acting on behalf of Weiye Holdings Group Limited. This offer aims to acquire all issued shares of Microware Group Limited not already owned by the offeror. The revised form was sent to independent shareholders on May 6, 2025, and stakeholders are advised to review the accompanying documents carefully before making any decisions. The offer’s outcome remains conditional, and shareholders are encouraged to consider the independent financial adviser’s advice.

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: Aug 06, 2025