Shanghai Newtouch Software Co (688590) Fair Value & Analysis

Technology · CN · Market cap 3.9B CNY

Below-average quality, and screening another 77% overvalued on our models.

What matters now

• The price sits above even our optimistic bull case (¥5.51). The favourable scenario is already priced in.
• Weak quality (33/100) and above fair value at the same time, the margin of safety is missing on both counts.
• The model range is unusually wide (¥1.47 to ¥5.51). The outcome hinges heavily on assumptions, so read the point estimate with caution.
• The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.

Price vs Fair Value (5 years)

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

60‑month range ¥8.55 – ¥26.83 · fair‑value band ¥1.47 – ¥5.51 · the ¥13.79 price screens above the ¥3.24 fair value. Dashed = 300-day average. As of Jul 12, 2026.

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Analysis

Shanghai Newtouch Software Co (688590) currently trades at ¥13.79, while our model-based Fair Value estimate is ¥3.24, implying the stock looks roughly 76.5% overvalued today. The Quality Score stands at 33/100 (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 Newtouch Software Co generated revenue of 2.1B CNY at a net margin of -6.7%. Revenue grew 1.2% year over year. It earns a return on equity of -9.2%. Net debt stands at 891M CNY. Fundamentals as of Jul 12, 2026

Our scenario range runs from ¥1.47 (bear case) to ¥5.51 (bull case); at ¥13.79, 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 8% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at -25% fair-value upside, at -77%, 688590 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.

Widest divergence: Asset-Based (¥3.23) versus Dividend Discount (¥2.30). Highest evidence: Gordon GGM (70).

Key figures & financial health

Quality Score breakdown

About the company

Shanghai Newtouch Software Co., Ltd. operates as a software and information technology services company in China. The company offers Xinzhi intelligent customer service system, related transaction management system, Xinzhi financial investment platform, Xinzhi financial management agency sales management platform, Xinzhi intelligent customer service system …

Full company description

Shanghai Newtouch Software Co., Ltd. operates as a software and information technology services company in China. The company offers Xinzhi intelligent customer service system, related transaction management system, Xinzhi financial investment platform, Xinzhi financial management agency sales management platform, Xinzhi intelligent customer service system software, Xinzhi supply chain financial system, and Newtouch asset custody business platform, as well as salesperson management platform, a software system for managing the salespersons of various marketing channels of insurance companies. It also provides an integral mall platform, training management platform, ecological business platform"internet open platform, claims business platform, artificial intelligence management and control platform, DMP data management platform, auto dealer management system, LINUX in-vehicle infotainment system, Xinzhi automobile carbon emission integrated management platform, financial shared service center, laboratory management system, and closed-loop management system for the whole process of blood transfusion. In addition, the company provides software development services including consulting planning, design, development, and operation and maintenance, as well as basic computing services; software development outsourcing services; and software project subcontracting services. It provides technology services to insurance companies, banks, and other financial institutions and end customers in other industries. Shanghai Newtouch Software Co., Ltd. was founded in 1994 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 Newtouch Software Co reported revenue of ¥2.1B in FY2025 versus ¥1.3B in FY2021, a compound +13.3%/yr. Reported net income was −¥120M in FY2025.

688590 screens 77% overvalued. Compare with International Business Machines Corporation →

Peer Group

Information Technology Services · 480 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.

Valuation Multiples vs Information Technology Services median · lower = cheaper

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: 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.

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

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Frequently asked questions

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.