ChinaSoft International (354.HK) Annual result in line with expectations, emerging business becomes the new growth driver March 29, 2019

PSR Recommendation: BUY Status: Maintained
Target Price: HKDHKD 6.57

Investment Summary
ChinaSoft International is one of the leading software and information services
companies in China. Revenue growth in line with our expectations, while net profit
surpassed it. And, emerging business became the new growth driver. Based on 2019
net profit, we assume a P/E ratio of 16.5x (average over the past three years), deriving a
TP of HK$6.57, 22.3% higher than previous TP, we reiterate a “Buy” rating with a
potential return of approximately 41.0%. (Closing price at 27 Mar 2019)

About the author

Profile photo of Terry Li

Terry Li
Investment Analyst

Graduated from Lingnan University, with Master of Science in International Banking and Finance and Bachelor of Business Administration respectively. Specializes in analyzing company fundamentals and valuation to explore investment opportunities in TMT, Education and Financial industry.

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