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Neusoft Corporation (600718) Fair Value & Analysis

Technology · CN · Market cap 9.9B CNY

NC Neusoft Corporation 600718 · SHG
Price¥8.28
Fair Value¥4.37
Upside-47.2%
Quality52/100
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Mixed Growth
Loss-making · -4.1% net margin
Low debt · generates free cash flow
Trails peers (4/13)
Narrow moat 12/100
Evidence: High Range ¥3.63 – ¥5.10 Share as image

Fair value as of: Aug 9, 2026

From 15 valuation models · updated yesterday

Share price +10.8% over the past month.

A solid business, but screening 47% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥5.10). The favourable scenario is already priced in.
  • Solid but not exceptional quality (52/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

¥15.77 ¥6.40 Fair Value ¥4.37 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 9, 2026.

How to read this chart

60‑month range ¥6.40 – ¥15.77 · fair‑value band ¥3.63 – ¥5.10 · the ¥8.28 price screens above the ¥4.37 fair value. Dashed = 300-day average. As of Aug 9, 2026.

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Analysis

Neusoft Corporation (600718) currently trades at ¥8.28, while our model-based Fair Value estimate is ¥4.37, implying the stock looks roughly 47.2% overvalued today. The Quality Score stands at 52/100 (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, Neusoft Corporation generated revenue of 12.1B CNY at a net margin of -4.1%. Revenue grew 2.5% year over year. It earns a return on equity of -5.2%. The balance sheet holds a net cash position of 1.7B CNY. Fundamentals as of Aug 9, 2026

Our scenario range runs from ¥3.63 (bear case) to ¥5.10 (bull case); at ¥8.28, 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 35% below its 52-week high and 8% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at -27% fair-value upside, at -47%, 600718 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 BearBaseBull Evidence
Highest evidence
Growth DCF ¥3.84 ¥5.34 ¥7.71 80
Rev-Margin DCF ¥3.31 ¥4.42 ¥5.82 74
ROIC Compounder ¥2.88 ¥3.09 ¥3.26 72
All 15 models by family
DCF Models
FCF DCF ¥3.85 ¥5.48 ¥8.13 38
5Y Revenue Exit ¥3.31 ¥4.42 ¥5.90 39
5Y EBITDA Exit ¥5.01 ¥7.87 ¥11.42 41
10Y Revenue Exit ¥3.43 ¥4.53 ¥6.13 36
10Y EBITDA Exit ¥4.58 ¥6.97 ¥10.56 37
Earnings-Based
EPV ¥2.88 ¥3.09 ¥3.26 59
Dividend Discount
Gordon GGM ¥1.52 ¥3.02 ¥4.58 70
DDM Multi-Stage ¥1.52 ¥2.61 ¥3.19 61
Multiples
EV/EBIT ¥3.78 ¥4.52 ¥5.25 53
EV/EBITDA ¥6.00 ¥7.47 ¥8.94 54
EV/Revenue ¥3.06 ¥3.70 ¥4.34 43
Asset-Based
NCAV (Graham) ¥3.77 ¥5.05 ¥7.54 50
Growth DCF
Growth DCF ¥3.84 ¥5.34 ¥7.71 80
Rev-Margin DCF ¥3.31 ¥4.42 ¥5.82 74
Economic Profit
ROIC Compounder ¥2.88 ¥3.09 ¥3.26 72

Widest divergence: DCF Models (¥5.48) versus Dividend Discount (¥2.61). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 12.1B CNY
Revenue growth (YoY) +2.5%
Net margin -4.1%
Return on equity -5.2%
Free cash flow 229M CNY FY2025
Operating margin -3.5%
More key figures
EPS (TTM) ¥-0.4300
EPS growth (YoY) -19.3%
Net cash 1.7B CNY FY2024

Figures from reported company fundamentals · as of Aug 9, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 52/100

Of which business quality 51 · Market factors (momentum, volatility) 35

Profitability 17
Margins and returns on capital today
Quality Growth 44
Are margins and returns improving?
Cashflow 25
Earnings quality: real cash, not paper profit
Fin. Strength 59
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 82
Calm price path (market factor)
Momentum 14
Price trend over the last 3–12 months (market factor)
52W Momentum 19
Distance to the 52-week high (market factor)
Net Issuance 96
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

Neusoft Corporation engages in the provision of software and information technology solutions and services worldwide. It offers healthcare solutions, such as hospital management, and medical study cloud platform; automotive solutions, including cockpit systems, navigation, communication, intelligent vehicle cloud platform, safety, and software engineering …

Full company description

Neusoft Corporation engages in the provision of software and information technology solutions and services worldwide. It offers healthcare solutions, such as hospital management, and medical study cloud platform; automotive solutions, including cockpit systems, navigation, communication, intelligent vehicle cloud platform, safety, and software engineering services; and data integration, automated testing, data analysis, IT monitoring operation, cloud operation management, and application performance management platforms. The company also provides enterprise applications comprising human capital management, archives management, financial management, network security, and e-commerce solutions. In addition, it provides software engineering, BPO, product engineering, testing and performance, industrial, and cloud services. The company serves healthcare, transportation, environmental protection, telecom, education, food and drug safety, energy, manufacturing, finance, and media industries. Neusoft Corporation was founded in 1991 and is headquartered in Shenyang, the People's Republic of China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Neusoft Corporation reported revenue of ¥12.0B in FY2025 versus ¥8.7B in FY2021, a compound +8.3%/yr. Reported net income was −¥358M in FY2025.

Growth Quality 52/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
12.0B CNY
Latest YoY
+4.1%
Avg. growth/yr (3Y)
+8.3%
Avg. growth/yr (5Y)
+9.6%
Avg. growth/yr (32Y)
+22.4%
Revenue +8.3%/yr
FY21 ¥8.7B
FY22 ¥9.5B
FY23 ¥10.5B
FY24 ¥11.6B
FY25 ¥12.0B
Net income
FY21 ¥1.2B
FY22 −¥343M
FY23 ¥73.9M
FY24 ¥63.0M
FY25 −¥358M

600718 screens 47% overvalued. Compare with SAP SE →

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Cite: Fair Value Calculator (2026). "Neusoft Corporation Fair Value". https://www.fairvalue-calculator.com/stock/600718

Peer Group

Software - Application · 709 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 52 · Below median
Fair Value upside −47% · Below median
Return on assets -1% · Below median
Net margin (TTM) -4% · Below median
Operating margin (TTM) -3% · Below median
Revenue growth 3% · Below median
Dividend yield (TTM) 0.0% · Bottom 25%
Debt / equity 0.08× · Higher than median

Valuation Multiples vs Software - Application median · lower = cheaper

P/B 0.16× · Cheaper than 75% of peers
P/S (TTM) 0.12× · Cheaper than 75% of peers
P/FCF 6.4× · Cheaper than median
PEG 0.69× · Cheaper than 75% of peers

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 0
FUTURE 13 · sector 38
PAST 0 · sector 13
HEALTH 96 · sector 98
DIVIDEND 0 · sector 28

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 Software - Application stocks, each showing price versus our Fair Value estimate (as of Aug 9, 2026).

Stock Price Fair Value vs Fair Value
SAP SE SAPS C$12.69 C$16.26 +28%
Shopify Inc SHOP C$173.23 C$20.54 -88%
Uber Technologies, Inc UBER $72.67 $51.11 -30%
Salesforce, Inc CRM $170.77 $182.10 +7%
ServiceNow, Inc NOW $107.71 $33.12 -69%
Cadence Design Systems, Inc CDNS $384.17 $80.41 -79%
Snowflake Inc SNOW $271.87 $34.04 -87%
Adobe Inc ADBE $230.61 $379.48 +65%
Automatic Data Processing, Inc ADP $241.92 $177.51 -27%
Intuit Inc INTU $291.09 $258.69 -11%

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Frequently asked questions

Is Neusoft Corporation (600718) overvalued or undervalued?
As of Aug 9, 2026, our model estimates a fair value of ¥4.37 versus a price of ¥8.28, about −47% (overvalued).
What is the fair value of 600718?
Our model-based fair value for Neusoft Corporation is ¥4.37 (as of Aug 9, 2026), built from audited fundamentals. The current price is ¥8.28.
What is the quality score of 600718?
Neusoft Corporation has a Quality Score of 52/100. 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 Neusoft Corporation (600718)?
Neusoft Corporation reported trailing-twelve-month revenue of about 12.1B CNY (latest available figure, as of Aug 9, 2026).
What is the net profit margin of 600718?
The net profit margin of Neusoft Corporation is about -4.1%, meaning it is currently running at a net loss. Based on the latest reported figures.

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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