Koal Software Hits Day Low at CNY 21.81 Amid Price Pressure

Koal Software Co., a midcap player in the software products industry, experienced significant volatility on November 3, 2025, with its stock price declining by 8.68%. The stock reached an intraday low of CNY 21.81, reflecting a challenging day in the market.
Despite a strong performance over the past year, where the stock has gained 72.12%, recent financial metrics indicate underlying issues. The company's return on capital employed (ROCE) stands at a low 2.24%, suggesting limited profitability relative to its capital. Additionally, net sales have seen a sharp decline of 51.89%, contributing to a pre-tax profit drop of 2,485.97% in the latest quarter.

Koal Software's valuation appears elevated with a price-to-book ratio of 2.49, while its return on equity (ROE) is just 1.16%. The company has also reported a high dividend yield of 0.35%, but this may not offset concerns regarding its long-term growth trajectory, as net sales have only grown at an annual rate of 3.85% over the past five years. Overall, the stock's performance today highlights the complexities facing Koal Software Co. in a competitive market landscape.