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Chinasoft InternationalHKSE:00354 +2.07%86 Net Margin % is 3.41% as of Jun. 2026, which is 45% below its 10-year median of 6.15. GuruFocus rates HKSE:00354 with a GF Score™ of 86/100 and a GF Value™ of HK$5.80 (Significantly Undervalued). The stock has 7 warning signs investors should review. Among 2,833 Software companies, Chinasoft International ranks worse than 51.96% on this metric.
Chinasoft International (HKSE:00354) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Chinasoft International Net Margin % Related Terms
Chinasoft International Net Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
HKSE:00354 vs IBM, ACN, CTSH: Net Margin % Comparison
For the Information Technology Services subindustry, Chinasoft International's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Chinasoft International Net Margin % vs Software Industry
For the Software industry and Technology sector, Chinasoft International's Net Margin % distribution charts can be found below:
* The bar in red indicates where Chinasoft International's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Chinasoft International (HKSE:00354) has a Net Margin % of 3.41% as of Jun. 2026. Net margin is the ratio of total net income to net sales. View historical data on Chinasoft International and its competitors. This is 45% below median its historical median of 6.15. Over the past decade, Chinasoft International's Net Margin % has ranged from 1.89 to 6.77. According to the industry distribution chart, Chinasoft International ranks #1472 out of 2833 companies in the Software industry, placing it in the top 52%.
Is Chinasoft International's Net Margin % too high?
Chinasoft International's current Net Margin % of 3.41% is 45% below median its 10-year median of 6.15. Over the past 10 years, this metric has ranged from a low of 1.89 to a high of 6.77. The Software industry median Net Margin % is 2.59. Chinasoft International's value of 3.41% is 31.7% above this industry median. Based on the distribution chart, Chinasoft International ranks #1472 out of 2833 companies in the Software industry, which is below the industry midpoint. Overall, Chinasoft International has a GF Score™ of 86/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Chinasoft International's Net Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Chinasoft International ranks #1472 out of 2833 companies for Net Margin %. This places Chinasoft International in the lower half of its industry. The industry median Net Margin % is 2.59. Chinasoft International's value of 3.41% is 31.7% above this benchmark. Historically, Chinasoft International's own Net Margin % has ranged from 1.89 to 6.77 over the past decade. While the company's 10-year median is 6.15 vs. the industry median of 2.59, Chinasoft International has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Software company?
The median Net Margin % among Software companies is 2.59, based on 2,833 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Chinasoft International's current Net Margin % of 3.41% is 31.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Chinasoft International and its competitors. For the Software industry, the median Net Margin % is 2.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chinasoft International's current Net Margin % is 3.41%, which is 45% below median its own 10-year median of 6.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chinasoft International stock overvalued right now?
Based on GuruFocus' analysis, Chinasoft International (HKSE:00354) is currently considered Significantly Undervalued. The stock's GF Value™ is HK$5.80, compared to a current price of HK$3.71 — trading 36.1% below its estimated fair value. The current Net Margin % is 3.41%, which is 45% below median its 10-year median of 6.15 and 31.7% above the Software industry median of 2.59. Chinasoft International's overall GF Score™ is 86/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Chinasoft International (HKSE:00354), the current Net Margin % is 3.41% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Chinasoft International (HKSE:00354) Overvalued in 2026?
Based on GuruFocus' analysis, Chinasoft International stock appears to be undervalued.
The current stock price of HK$3.71 is trading 36.1% below its estimated GF Value™ of HK$5.80.
GuruFocus considers Chinasoft International to be Significantly Undervalued.
Key valuation signals for HKSE:00354:
Net Margin %: 3.41% (45% below median its 10-year median of 6.15)
GF Value™: HK$5.80 vs. price of HK$3.71 (36.1% below fair value)
Industry Position: 31.7% above the Software median (#1472 of 2833)
No single metric tells the full story. See the HKSE:00354 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chinasoft International Ltd is an investment holding company. The principal activities of the Company and its subsidiaries are development and provision of information technology (IT) solutions services, and IT outsourcing services. The company's Nature of goods and services Project-based development services, Outsourcing services, Other services, Sales of software and hardware products of which majority of revenue comes from Outsourcing services. The group now has only one operating segment. The Group's operations are mainly located in its country of domicile, the People's Republic of China. The company has presence in PRC, Malaysia, Japan, Saudi Arabia, Singapore, India, and Indonesia. The majority of revenue comes from PRC.
86GF Score
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