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Microware Group Ltd.
(1985)
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Rating:51Neutral
Price Target:
HK$1.50
▲(16.28% Upside)
Action:Reiterated
Date: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 material FCF rebound in 2025 indicates the business can generate operating cash after investments, improving financial flexibility. Durable cash generation supports dividends, capex and debt servicing over the medium term, reducing reliance on external financing.
Negative Factors
Sharp profitability and ROE decline
A dramatic drop in profitability and return on equity signals weakening core earnings power and inefficient capital use. Persistently low ROE can limit reinvestment returns and shareholder value creation, pressuring long-term growth and capital allocation choices.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow recovery
A material FCF rebound in 2025 indicates the business can generate operating cash after investments, improving financial flexibility. Durable cash generation supports dividends, capex and debt servicing over the medium term, reducing reliance on external financing.
Read all positive factors
Microware Group Ltd. (1985) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$885.00M
Dividend Yield8.55%
Average Volume (3M)151.40K
Price to Earnings (P/E)29.3
Beta (1Y)-0.19
Revenue Growth-12.76%
EPS Growth234.55%
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 Ratio0.00
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...
Microware Group Ltd. Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
63
Positive
Cash Flow
56
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 | 0.00 | 79.19M | -24.86M | 74.92M | 43.77M |
| Operating Cash Flow | 0.00 | 86.78M | -24.62M | 77.21M | 45.97M |
| Investing Cash Flow | 0.00 | -60.99M | 4.26M | -1.48M | -1.38M |
| Financing Cash Flow | 0.00 | -24.67M | -68.10M | -52.06M | -42.56M |
Microware Group Ltd. Technical Analysis
Neutral
1.29
Price Trends
2.46
Positive
1.89
Positive
1.61
Positive
Market Momentum
0.25
Positive
46.61
Neutral
33.88
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 3.40, below the 50-day MA of 2.46, and below the 200-day MA of 1.61, indicating a neutral trend. The MACD of 0.25 indicates Positive momentum. The RSI at 46.61 is Neutral, neither overbought nor oversold. The STOCH value of 33.88 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | HK$587.60M | 7.09 | 3.52% | 3.66% | 9.79% | -44.84% | |
64 Neutral | HK$495.57M | 3.42 | 1.74% | 2.52% | 13.62% | ― | |
63 Neutral | HK$305.78M | 16.60 | 3.68% | 7.24% | -7.58% | -36.30% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | HK$323.39M | 4.07 | 3.70% | 9.12% | 13.15% | 197.79% | |
51 Neutral | HK$885.00M | 29.29 | -0.77% | 8.55% | -12.76% | 234.55% | |
46 Neutral | HK$700.00M | 85.89 | 2.39% | ― | 13.26% | 757.89% |
* Technology Sector Average
HK:1985
Microware Group Ltd.
2.95
1.49
102.05%
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Capinfo Co., Ltd. Class H
1.71
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-17.07%
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BoardWare Intelligence Technology Limited
1.40
0.06
4.48%
HK:1900
China ITS Holdings Co., Ltd.
0.19
-0.01
-5.53%
HK:0046
Computer & Technologies Holdings Ltd.
1.26
-0.25
-16.33%
HK:0771
Automated Systems Holdings Limited
0.70
-0.17
-19.35%
Microware Group Ltd. Corporate Events
Microware Adds Pricing Details on 29.9 Million Share Awards in 2025 Report
Mar 13, 2026
Microware Group Limited has issued a supplemental announcement to its annual report for the year ended 31 March 2025, providing additional details on its share award scheme. The board clarified that 29,998,000 awarded shares granted under the sche...
Microware Replaces Deloitte With HLB to Cut Audit Costs Amid PRC Expansion
Feb 23, 2026
Microware Group Limited has announced a change of auditor after failing to reach agreement with Deloitte Touche Tohmatsu on audit fees for the year ending 31 March 2026, citing additional audit work arising from its business expansion in the mainl...
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.