Hoperun: Strong Rebound In Q1 2021 & Share Price

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Brief Intro:

Jiangsu Hoperun Software Co., Ltd. engages in the provision of software outsourcing services. The company’s products include finance solutions, telematics, apparel supply chain, government solutions, communication, and mobile solutions, geographic information system application, retail trade solutions, power solutions, telematics, and corporation solutions. The company is headquartered in Nanjing, China, and was founded in June 2006.

Management Board:

This company is governed by Hong Wei Zhou as the Chairman, Chuan Gang Sang is the company’s Chairman-Supervisory Board, Yan Xin Liu remains the company’s Director & Senior Vice President, Yuan-Yuan Wang as Member-Supervisory Board, Xiao Xing Liu as Independent Director, and Chun Fu Yang as the company’s Independent Director.

Shares Review:

From the 1st of May 2021 to June 8, 2021, Hoperun has recorded a share price surge of 155.65%. Jiangsu Hoperun Software Co. Ltd.300339 (China: Shenzhen) were trading up +10.79% on Tuesday noon June 8th, 2021, Stock Price previously closed at CNY 22.06, Opening at CNY 24.20, and Stock Price currently at CNY 24.44 which indicates an uprise of +2.38 (+10.79%) with a Market Cap of CNY 19.46 billion, P/E ratio of 95.59 x and EPS of 0.23, with Shares Outstanding of CNY 796,410,841 and revenue of CNY 3.14 billion. In this analysis, I will unveil insights into Hoperun's investment potentials.

Earnings Recap:

Hoperun Software recorded an increase in its Q1 2021 revenue report, The company indicated that it had a 28.96% QoQ as CNY 662.12 million was recorded. The company also recorded net income for 1Q 2021 as CNY 27.07 million which indicates a 161.72% increment QoQ. Diluted EPS also increased 0.03 which is 200.00%. The company’s Net profit margin and Operating income also recorded an uprise in its record as 4.09% and CNY 23.66 million were recorded, indicating 103.48% and 32.12% surge respectively. Hoperun Software's increase in revenue is a sign that the company’s products and services are satisfactory.

Hoperun Software made total revenue of CNY 2.48 billion in Fy 2020, showing an increment of 16.93% as opposed to Fy 2019 when the company’s revenue was CNY 2.12 billion. According to financial reports, Hoperun Software Q1 2020 to Q4 2020 presented an abundant performance in Fy20. Hoperun Software released a financial report that indicated its performance in the company’s revenue in Q1 2020 which recorded CNY 513.42 million, subsequently, a record of CNY 583.79 million was noted for Q2 2020. And Q3 2020 also recorded revenue earnings of CNY 650.30 million as its total revenue, the revenue of CNY 744.24 million was recorded for Q4 2020 with a net income of CNY 34.88 million which represents a 101.78% increase QoQ.

Return on Assets:

Hoperun Software has been making efforts in other to improve more and generate income for shareholders, the company was able to present net Income for Fy 2020 as CNY 168.1 million, with an Average Assets of CNY 4.476 billion and a Return on Assets of 3.8%. Fy 2020 P/E Ratio of Hoperun Software saw CNY 7.635 billion for Market Cap, Earnings recorded ?1,830.0, and the P/E Ratio was ?4.2x.

EV / EBITDA:

Hoperun Software’s EV/EBITDA for Fy 2020 recorded Enterprise Value to be CNY 7.925 billion. The EBITDA was CNY -81.516 million and the EV/EBITDA ratio was ?97.2x.

Investors Note:

The increased demand for software outsourcing services and the ongoing cost optimization process as well as increasing revenue has created a unique opportunity for stock growth. Moreover, the company consistently improves operating margins. The improvement in net cash makes Hoperun Software more flexible to changing conditions and makes possible additional investments.

 

Source:

https://www.reuters.com/companies/300339.SZ

https://www.marketscreener.com/quote/stock/JIANGSU-HOPERUN-SOFTWARE-12676973/company/

https://www.bloomberg.com/profile/company/300339:CH

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