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Shanghai Information2 Software Inc (688435) Fair Value & Analysis

Technology · CN · Market cap 3.1B CNY

SI Shanghai Information2 Software Inc 688435 · SHG
Price¥31.42
Fair Value¥10.19
Upside-67.6%
Quality32/100
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Weak Growth
Loss-making · -7.6% net margin
negative free cash flow
Trails peers (2/9)
Narrow moat 13/100
Evidence: Low Range ¥6.72 – ¥12.73 Share as image

Fair value as of: Jul 12, 2026

From 1 valuation models · updated 30 days ago

Fair value updated Jul 12, 2026, revised from ¥39.36 to ¥10.19 (−74.1%) since Jun 24, 2026. Share price +3.9% over the past month.

Below-average quality, and screening another 68% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥12.73). The favourable scenario is already priced in.
  • Weak quality (32/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • A fairly wide model range (¥6.72 to ¥12.73) leaves room in how you read the outcome.
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Price vs Fair Value (4 years)

¥132.33 ¥18.94 Fair Value ¥10.19 Jan 2023 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 12, 2026.

How to read this chart

43‑month range ¥18.94 – ¥132.33 · fair‑value band ¥6.72 – ¥12.73 · the ¥31.42 price screens above the ¥10.19 fair value. Dashed = 300-day average. As of Jul 12, 2026.

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Analysis

Shanghai Information2 Software Inc (688435) currently trades at ¥31.42, while our model-based Fair Value estimate is ¥10.19, implying the stock looks roughly 67.6% overvalued today. The Quality Score stands at 32/100 (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: low).

Over the trailing twelve months, Shanghai Information2 Software Inc generated revenue of 192M CNY at a net margin of -7.6%. Revenue grew 9.3% year over year. It earns a return on equity of -1.3%. Fundamentals as of Jul 12, 2026

Our scenario range runs from ¥6.72 (bear case) to ¥12.73 (bull case); at ¥31.42, 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 52% 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 -68%, 688435 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
NCAV (Graham) ¥6.56 ¥8.79 ¥13.12 50
All 1 models by family
Asset-Based
NCAV (Graham) ¥6.56 ¥8.79 ¥13.12 50

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Key figures & financial health

Revenue (TTM) 192M CNY
Revenue growth (YoY) +9.3%
Net margin -7.6%
Return on equity -1.3%
Free cash flow −14.9M CNY FY2025
Operating margin -37.8%
More key figures
EPS (TTM) ¥-0.1800
EPS growth (YoY) -75.3%

Figures from reported company fundamentals · as of Jul 12, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 32/100

Of which business quality 36 · Market factors (momentum, volatility) 28

Profitability 10
Margins and returns on capital today
Quality Growth 40
Are margins and returns improving?
Cashflow 7
Earnings quality: real cash, not paper profit
Fin. Strength 87
Balance sheet, leverage, solvency risk
Investment 33
Disciplined investing over empire-building
Low Volatility 46
Calm price path (market factor)
Momentum 20
Price trend over the last 3–12 months (market factor)
52W Momentum 20
Distance to the 52-week high (market factor)
Net Issuance 40
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

Shanghai Information2 Software Inc. operates as a technology company that provides disaster recovery and business applications in China. It also operates i2yun.com, a cloud service platform to provide users with migration, and disaster recovery and service.

Full company description

Shanghai Information2 Software Inc. operates as a technology company that provides disaster recovery and business applications in China. It also operates i2yun.com, a cloud service platform to provide users with migration, and disaster recovery and service. In addition, the company offers disaster recovery, backup, cloud disaster recovery, and big data products. Further, it offers software and hardware integrated machine products; and software related services. Shanghai Information2 Software Inc. was founded in 2011 and is headquartered in Shanghai, China.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Shanghai Information2 Software Inc reported revenue of ¥189M in FY2025 versus ¥160M in FY2021, a compound +4.2%/yr. Reported net income was −¥14.8M in FY2025.

Growth Quality 1/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
189M CNY
Latest YoY
−1.0%
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.
−1.4%
Revenue +4.2%/yr
FY21 ¥160M
FY22 ¥197M
FY23 ¥243M
FY24 ¥190M
FY25 ¥189M
Net income
FY21 ¥33.9M
FY22 ¥37.0M
FY23 ¥44.5M
FY24 −¥28.6M
FY25 −¥14.8M

688435 screens 68% overvalued. Compare with SAP SE →

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Cite: Fair Value Calculator (2026). "Shanghai Information2 Software Inc Fair Value". https://www.fairvalue-calculator.com/stock/688435

Peer Group

Software - Application · 710 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 36 · Bottom 25%
Fair Value upside −68% · Bottom 25%
Return on assets -2% · Below median
Net margin (TTM) -8% · Bottom 25%
Operating margin (TTM) -38% · Bottom 25%
Revenue growth 9% · Above median

Valuation Multiples vs Software - Application median · lower = cheaper

P/B 0.42× · Cheaper than 75% of peers
P/S (TTM) 2.42× · Pricier 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 0
FUTURE 47 · sector 38
PAST 0 · sector 13
HEALTH 0 · 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 Jul 12, 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 Shanghai Information2 Software Inc (688435) overvalued or undervalued?
As of Jul 12, 2026, our model estimates a fair value of ¥10.19 versus a price of ¥31.42, about −68% (overvalued).
What is the fair value of 688435?
Our model-based fair value for Shanghai Information2 Software Inc is ¥10.19 (as of Jul 12, 2026), built from audited fundamentals. The current price is ¥31.42.
What is the quality score of 688435?
Shanghai Information2 Software Inc has a Quality Score of 32/100. 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 Shanghai Information2 Software Inc (688435)?
Shanghai Information2 Software Inc reported trailing-twelve-month revenue of about 192M CNY (latest available figure, as of Jul 12, 2026).
What is the net profit margin of 688435?
The net profit margin of Shanghai Information2 Software Inc is about -7.6%, 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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