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Chinasoft International Limited (0354) Fair Value & Analysis

Technology · HK · Market cap HK$7.3B

CI Chinasoft International Limited 0354 · HK
PriceHK$3.48
Fair ValueHK$2.54
Upside-27.0%
Quality54/100
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Expensive Growth
Thin margins · 1.9% net margin
Low debt · negative free cash flow
1.41% dividend yield
Trails peers (3/14)
Narrow moat 17/100
Evidence: High Range HK$1.90 – HK$3.16 Share as image

Fair value as of: Aug 13, 2026

From 17 valuation models · updated 2 days ago

Fair value updated Aug 13, 2026, revised from HK$2.53 to HK$2.54 (+0.4%) since Aug 2, 2026. Share price +15.2% over the past month.

A solid business, but screening 27% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (HK$3.16). The favourable scenario is already priced in.
  • Solid but not exceptional quality (54/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

HK$15.12 HK$2.90 Fair Value HK$2.54 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range HK$2.90 – HK$15.12 · fair‑value band HK$1.90 – HK$3.16 · the HK$3.48 price screens above the HK$2.54 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Chinasoft International Limited (0354) currently trades at HK$3.48, while our model-based Fair Value estimate is HK$2.54, implying the stock looks roughly 27.0% overvalued today. The Quality Score stands at 54/100 (solid quality), in the Technology sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Chinasoft International Limited generated revenue of HK$17.0B at a net margin of 1.9%. Revenue declined 5.6% year over year. It earns a return on equity of 2.8%. Net debt stands at HK$2.0B. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$1.90 (bear case) to HK$3.16 (bull case); at HK$3.48, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 50% below its 52-week high and 20% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at 0% fair-value upside, at -27%, 0354 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income HK$3.33 HK$3.20 HK$2.60 76
ROIC Compounder HK$0.9900 HK$1.04 HK$1.10 72
Gordon GGM HK$0.4300 HK$0.8500 HK$1.29 70
All 17 models by family
DCF Models
Owner Earnings HK$1.35 HK$2.11 HK$3.56 31
Earnings-Based
Graham-Dodd HK$0.8700 HK$5.33 HK$7.43 54
Lynch FV HK$1.53 HK$2.18 HK$2.83 50
PEG = 1.0 HK$1.53 HK$2.18 HK$2.83 46
EPV HK$0.9900 HK$1.04 HK$1.10 59
Dividend Discount
Gordon GGM HK$0.4300 HK$0.8500 HK$1.29 70
DDM Multi-Stage HK$0.4300 HK$0.7400 HK$0.9000 61
Multiples
P/E Multiple HK$2.69 HK$3.59 HK$4.48 63
P/S Multiple HK$1.63 HK$2.18 HK$2.72 58
P/B Multiple HK$1.63 HK$2.18 HK$2.72 55
EV/EBIT HK$1.91 HK$2.34 HK$2.77 53
EV/EBITDA HK$3.33 HK$4.23 HK$5.14 54
EV/Revenue HK$1.27 HK$1.55 HK$1.83 43
Asset-Based
NCAV (Graham) HK$2.35 HK$3.15 HK$4.70 50
Economic Profit
Residual Income HK$3.33 HK$3.20 HK$2.60 76
ROIC Compounder HK$0.9900 HK$1.04 HK$1.10 72
Growth Earnings
Growth-Adj P/E HK$2.54 HK$3.62 HK$4.71 68

Widest divergence: Growth Earnings (HK$3.62) versus Dividend Discount (HK$0.7400). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) HK$17.0B
Revenue growth (YoY) -5.6%
Net margin 1.9%
Return on equity 2.8%
Free cash flow −HK$20.7M FY2025
P/E ratio 20.7 as of Jul 1, 2026
More key figures
Operating margin -0.8%
EPS (TTM) HK$0.1200
Dividend yield 1.4%
EPS growth (YoY) -97.4%
Net debt HK$2.0B FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 54/100

Of which business quality 53 · Market factors (momentum, volatility) 30

Profitability 34
Margins and returns on capital today
Quality Growth 34
Are margins and returns improving?
Cashflow 27
Earnings quality: real cash, not paper profit
Fin. Strength 63
Balance sheet, leverage, solvency risk
Investment 93
Disciplined investing over empire-building
Low Volatility 60
Calm price path (market factor)
Momentum 23
Price trend over the last 3–12 months (market factor)
52W Momentum 7
Distance to the 52-week high (market factor)
Net Issuance 97
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Chinasoft International Limited, together with its subsidiaries, operates as a software and information technology services company in the People's Republic of China, Malaysia, Japan, Saudi Arabia, Singapore, India, and Indonesia.

Full company description

Chinasoft International Limited, together with its subsidiaries, operates as a software and information technology services company in the People's Republic of China, Malaysia, Japan, Saudi Arabia, Singapore, India, and Indonesia. The company offers cloud services, such as cloud management services, cloud solutions, cloud training, and Huawei cloud products; consulting services for market insight, problem discovery, solution development, and enterprise efficiency; human resource solutions; and data engineering services, including consulting and evaluation, implementation and development, asset management, and value operation for the construction of enterprise data infrastructure. It also provides banking, securities, insurance, government and enterprises, and special solutions; independent intellectual property rights and OEM software, data warehouse implementation toolkit, and data asset management platform; application software development and maintenance services; and IT management services. In addition, the company offers product engineering comprising product design, product development, and quality testing and assurance; testing solutions consisting of financial and insurance, retail, e-commerce, intelligent terminal, smart home, vehicle and central control systems, games, and multilingual businesses; and ResourceOne, a middleware platform based on cloud computing. Further, it provides Ark, a big data middleware product; TopLink, a payment platform product; and business process outsourcing, which includes personnel and accounting, DTP desktop publishing, banking transactions, webpage making, data entry, and client assistance, as well as CAD architectural, production, and engineering design. The company was incorporated in 2000 and is headquartered in Beijing, the People's Republic of China.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Chinasoft International Limited reported revenue of HK$17.0B in FY2025 versus HK$18.4B in FY2021, a compound −1.9%/yr. Reported net income was HK$321M in FY2025, compounding −27.1%/yr from FY2021.

Growth Quality 34/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
HK$17.0B
Latest YoY
+0.5%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−5.2%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+3.8%
Avg. growth/yr (23Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+24.3%
Revenue −1.9%/yr
FY21 HK$18.4B
FY22 HK$20.0B
FY23 HK$17.1B
FY24 HK$17.0B
FY25 HK$17.0B
Net income −27.1%/yr
FY21 HK$1.1B
FY22 HK$759M
FY23 HK$713M
FY24 HK$513M
FY25 HK$321M
Character of growth · EPS growth decomposed (2014-2025) +3.2 % p.a.
Revenue per share +10.5 pp

of which total revenue +13.5 pp · buybacks/dilution −3.0 pp

EBIT margin −12.7 pp
Tax rate +1.6 pp
Residual (interest, one-offs) +3.8 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

0354 screens 27% overvalued. Compare with International Business Machines Corporation →

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Cite: Fair Value Calculator (2026). "Chinasoft International Limited Fair Value". https://www.fairvalue-calculator.com/stock/0354

Peer Group

Information Technology Services · 487 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 54 · Below median
Fair Value upside −27% · Below median
Return on equity (TTM) 3% · Below median
Return on assets 1% · Below median
Net margin (TTM) 2% · Below median
Operating margin (TTM) -1% · Bottom 25%
Revenue growth -6% · Bottom 25%
Dividend yield (TTM) 1.4% · Below median
Debt / equity 0.11× · Higher than median

Valuation Multiples vs Information Technology Services median · lower = cheaper

P/E (TTM) 20.7× · Pricier than median
P/B 0.62× · Cheaper than 75% of peers
P/S (TTM) 0.43× · Cheaper than median
EV/EBITDA 19.8× · Pricier than 75% of peers
PEG 0.92× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 33
FUTURE 0 · sector 31
PAST 11 · sector 35
HEALTH 95 · sector 97
DIVIDEND 28 · sector 40

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Information Technology Services stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
International Business Machines Corporation IBM $235.98 $175.76 -26%
Accenture plc ACNN 2,460 MXN 300.07 MXN -88%
Tata Consultancy Services Limited TCS ₹2,350 ₹3,473 +48%
Infosys Limited INFY ₹1,176 ₹1,998 +70%
HCL Technologies Limited HCLTECH ₹1,365 ₹1,722 +26%
Wipro Limited WIPRO ₹183.94 ₹314.26 +71%
Tech Mahindra Limited TECHM ₹1,625 ₹1,521 -6%
Samsung SDS Co 018260 235,500 KRW 235,321 KRW -0%
Persistent Systems Limited PERSISTENT ₹5,474 ₹3,259 -40%
Hyundai Autoever Corporation 307950 433,000 KRW 186,323 KRW -57%

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Frequently asked questions

Is Chinasoft International Limited (0354) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$2.54 versus a price of HK$3.48, about −27% (overvalued).
What is the fair value of 0354?
Our model-based fair value for Chinasoft International Limited is HK$2.54 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$3.48.
What is the quality score of 0354?
Chinasoft International Limited has a Quality Score of 54/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Chinasoft International Limited (0354)?
Chinasoft International Limited reported trailing-twelve-month revenue of about HK$17.0B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 0354?
The net profit margin of Chinasoft International Limited is about 1.9%, meaning it keeps roughly 1.9% of revenue as net income. Based on the latest reported figures.
Does Chinasoft International Limited pay a dividend?
Chinasoft International Limited currently shows a dividend yield of about 1.41% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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