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Sinosoft Co (603927) Fair Value & Analysis

Technology · CN · Market cap 12.2B CNY

SC Sinosoft Co 603927 · SHG
Price¥13.78
Fair Value¥9.70
Upside-29.6%
Quality48/100
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Weak Growth
Thin margins · 3.8% net margin
generates free cash flow
2.05% dividend yield
Trails peers (4/13)
Narrow moat 30/100
Evidence: High Range ¥7.27 – ¥12.13 Share as image

Fair value as of: Jul 11, 2026

From 26 valuation models · updated 30 days ago

Fair value updated Jul 11, 2026, revised from ¥8.89 to ¥9.70 (+9.1%) since Jun 24, 2026. Share price +7.2% over the past month.

Below-average quality, and screening another 30% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥12.13). The favourable scenario is already priced in.
  • Solid but not exceptional quality (48/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

¥31.02 ¥12.43 Fair Value ¥9.70 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 11, 2026.

How to read this chart

60‑month range ¥12.43 – ¥31.02 · fair‑value band ¥7.27 – ¥12.13 · the ¥13.78 price screens above the ¥9.70 fair value. Dashed = 300-day average. As of Jul 11, 2026.

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Analysis

Sinosoft Co (603927) currently trades at ¥13.78, while our model-based Fair Value estimate is ¥9.70, implying the stock looks roughly 29.6% overvalued today. The Quality Score stands at 48/100 (below-average 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, Sinosoft Co generated revenue of 5.9B CNY at a net margin of 3.8%. Revenue declined 7.7% year over year. It earns a return on equity of 7.0%. The balance sheet holds a net cash position of 3.9B CNY. Fundamentals as of Jul 11, 2026

Our scenario range runs from ¥7.27 (bear case) to ¥12.13 (bull case); at ¥13.78, 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 39% below its 52-week high, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at -27% fair-value upside, at -30%, 603927 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
Residual Income ¥3.15 ¥3.33 ¥3.56 76
Growth DCF ¥6.53 ¥7.91 ¥10.18 72
Gordon GGM ¥3.57 ¥7.43 ¥11.79 70
All 26 models by family
DCF Models
FCF DCF ¥6.53 ¥7.99 ¥10.44 38
Owner Earnings ¥8.25 ¥10.96 ¥15.51 31
5Y Revenue Exit ¥7.10 ¥9.14 ¥11.87 39
5Y EBITDA Exit ¥7.43 ¥9.79 ¥12.71 41
5Y P/E Exit ¥7.66 ¥10.25 ¥13.16 38
10Y Revenue Exit ¥6.79 ¥8.64 ¥11.42 36
10Y EBITDA Exit ¥7.10 ¥9.11 ¥12.10 37
10Y P/E Exit ¥7.25 ¥9.45 ¥12.47 35
Earnings-Based
Graham-Dodd ¥1.83 ¥7.65 ¥10.43 54
Lynch FV ¥1.94 ¥2.76 ¥3.59 50
PEG = 1.0 ¥1.94 ¥2.76 ¥3.59 46
EPV ¥7.28 ¥7.74 ¥8.14 59
Dividend Discount
Gordon GGM ¥3.57 ¥7.43 ¥11.79 70
DDM Multi-Stage ¥3.57 ¥6.27 ¥7.80 61
Multiples
P/E Multiple ¥4.04 ¥5.39 ¥6.74 63
P/S Multiple ¥3.44 ¥4.58 ¥5.73 58
P/B Multiple ¥3.44 ¥4.58 ¥5.73 55
EV/EBIT ¥8.86 ¥10.31 ¥11.76 53
EV/EBITDA ¥8.19 ¥9.42 ¥10.64 54
EV/Revenue ¥7.45 ¥8.70 ¥9.96 43
Asset-Based
NCAV (Graham) ¥1.92 ¥2.57 ¥3.84 50
Growth DCF
Growth DCF ¥6.53 ¥7.91 ¥10.18 72
Rev-Margin DCF ¥7.10 ¥9.08 ¥11.54 67
Economic Profit
Residual Income ¥3.15 ¥3.33 ¥3.56 76
ROIC Compounder ¥7.28 ¥7.74 ¥8.14 67
Growth Earnings
Growth-Adj P/E ¥3.21 ¥4.59 ¥5.97 68

Widest divergence: DCF Models (¥9.14) versus Asset-Based (¥2.57). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 5.9B CNY
Revenue growth (YoY) -7.7%
Net margin 3.8%
Return on equity 7.0%
Free cash flow 134M CNY FY2025
P/E ratio 54.2
More key figures
Operating margin -3.3%
EPS (TTM) ¥0.2700
Dividend yield 2.1%
EPS growth (YoY) -23.2%
Net cash 3.9B CNY FY2024

Figures from reported company fundamentals · as of Jul 11, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 48/100

Of which business quality 50 · Market factors (momentum, volatility) 29

Profitability 36
Margins and returns on capital today
Quality Growth 17
Are margins and returns improving?
Cashflow 36
Earnings quality: real cash, not paper profit
Fin. Strength 91
Balance sheet, leverage, solvency risk
Investment 83
Disciplined investing over empire-building
Low Volatility 84
Calm price path (market factor)
Momentum 9
Price trend over the last 3–12 months (market factor)
52W Momentum 0
Distance to the 52-week high (market factor)
Net Issuance 37
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

Sinosoft Co.,Ltd engages in the research and development of computer software, applications, and services in China and internationally.

Full company description

Sinosoft Co.,Ltd engages in the research and development of computer software, applications, and services in China and internationally. The company offers consulting services and wealth of industry application software products to insurance industry; national public health information platform to health care industry; and professional technical services, securities solutions, design brokerage business, fixed income, prime broke, data warehouse and business intelligence, financial capital management, company collaborative office management, and other businesses to financial sector. It also provides high-quality integrated services to government field; information processing technologies, software products, comprehensive solutions, and value-added services to media sector; information service, flood forecasting and dispatching, wind prevention, drought resistance, consultation, human and material dispatching, and a three-dimensional simulation systems, as well as integrated wiring engineering to energy sector; and application software development, mainframe, storage, database, middleware, backup, network security, and other products to postal fields. In addition, the company offers computer and communication integration technology and call center application platform to call center sectors; professional transportation informatization planning and consulting, architecture and solution design, software and hardware implementation and operation, and maintenance services to transportation sector; consulting, planning and designing of information technology architecture, information system integration implementation, optimization, operation and maintenance, and training services to civil aviation sector. Further, the company develops standardization, automation, networking and intelligence platform; and provides its products to organization and enterprise industry, as well as other agent products. Sinosoft Co.,Ltd was founded in 1996 and is based in Beijing, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Sinosoft Co reported revenue of ¥6.0B in FY2025 versus ¥6.3B in FY2021, a compound −1.0%/yr. Reported net income was ¥224M in FY2025, compounding −21.1%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
6.0B CNY
Latest YoY
−9.6%
Avg. growth/yr (3Y)
−3.5%
Avg. growth/yr (5Y)
+0.8%
Avg. growth/yr (22Y)
+18.3%
Revenue −1.0%/yr
FY21 ¥6.3B
FY22 ¥6.7B
FY23 ¥6.5B
FY24 ¥6.7B
FY25 ¥6.0B
Net income −21.1%/yr
FY21 ¥577M
FY22 ¥638M
FY23 ¥655M
FY24 ¥355M
FY25 ¥224M

603927 screens 30% overvalued. Compare with SAP SE →

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Cite: Fair Value Calculator (2026). "Sinosoft Co Fair Value". https://www.fairvalue-calculator.com/stock/603927

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 48 · Below median
Fair Value upside −30% · Above median
Return on equity (TTM) 7% · Above median
Return on assets 1% · Below median
Net margin (TTM) 4% · Above median
Operating margin (TTM) -3% · Below median
Revenue growth -8% · Bottom 25%
Dividend yield (TTM) 2.1% · Above median

Valuation Multiples vs Software - Application median · lower = cheaper

P/E (TTM) 54.2× · Pricier than 75% of peers
P/B 3.81× · Pricier than median
P/S (TTM) 2.05× · Pricier than median
P/FCF 13.4× · Pricier than median
EV/EBITDA 60.8× · Pricier 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 0 · sector 38
PAST 28 · sector 13
HEALTH 0 · sector 98
DIVIDEND 41 · 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 Jul 11, 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 Sinosoft Co (603927) overvalued or undervalued?
As of Jul 11, 2026, our model estimates a fair value of ¥9.70 versus a price of ¥13.78, about −30% (overvalued).
What is the fair value of 603927?
Our model-based fair value for Sinosoft Co is ¥9.70 (as of Jul 11, 2026), built from audited fundamentals. The current price is ¥13.78.
What is the quality score of 603927?
Sinosoft Co has a Quality Score of 48/100. 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 Sinosoft Co (603927)?
Sinosoft Co reported trailing-twelve-month revenue of about 5.9B CNY (latest available figure, as of Jul 11, 2026).
What is the net profit margin of 603927?
The net profit margin of Sinosoft Co is about 3.8%, meaning it keeps roughly 3.8% of revenue as net income. Based on the latest reported figures.
Does Sinosoft Co pay a dividend?
Sinosoft Co currently shows a dividend yield of about 2.05% relative to its recent price (as of Jul 11, 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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