Why is Gstarsoft Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 1,736.30%
- The company has been able to generate a Return on Capital Employed (avg) of 1,736.30% signifying low profitability per unit of total capital (equity and debt)
2
High Debt Company with a Debt to Equity ratio (avg) at times
- Poor long term growth as Net Sales has grown by an annual rate of 11.03% and Operating profit at -27.83% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
- The company has been able to generate a Return on Equity (avg) of 1,646.13% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 11.03% and Operating profit at -27.83% over the last 5 years
4
Flat results in Jun 25
- INTEREST(HY) At CNY 0.1 MM has Grown at 243.22%
5
With ROE of 4.80%, it has a very attractive valuation with a 0.56 Price to Book Value
- Over the past year, while the stock has generated a return of 17.37%, its profits have risen by 36.9% ; the PEG ratio of the company is 0.3
- At the current price, the company has a high dividend yield of 1.3
How much should you hold?
- Overall Portfolio exposure to Gstarsoft Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Software Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Gstarsoft Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Gstarsoft Co., Ltd.
20.38%
1.01
46.98%
China Shanghai Composite
14.9%
1.05
14.56%
Quality key factors
Factor
Value
Sales Growth (5y)
11.03%
EBIT Growth (5y)
-27.83%
EBIT to Interest (avg)
36.48
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.97
Sales to Capital Employed (avg)
22.43
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
72.80%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
1,736.30%
ROE (avg)
1,646.13%
Valuation Key Factors 
Factor
Value
P/E Ratio
12
Industry P/E
Price to Book Value
0.56
EV to EBIT
-17.71
EV to EBITDA
-15.35
EV to Capital Employed
-6.34
EV to Sales
-1.76
PEG Ratio
0.31
Dividend Yield
1.33%
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
4.80%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Bullish
Technical Movement
4What is working for the Company
RAW MATERIAL COST(Y)
Fallen by 0.31% (YoY
NET PROFIT(9M)
Higher at CNY 54.07 MM
-8What is not working for the Company
INTEREST(HY)
At CNY 0.1 MM has Grown at 243.22%
Here's what is working for Gstarsoft Co., Ltd.
Net Profit
At CNY 54.07 MM has Grown at 65.54%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
Net Profit
Higher at CNY 54.07 MM
than preceding 12 month period ended Jun 2025MOJO Watch
In the nine month period the company has already crossed sales of the previous twelve months
Net Profit (CNY MM)
Raw Material Cost
Fallen by 0.31% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at CNY 2 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (CNY MM)
Depreciation
At CNY 2 MM has Grown at inf%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (CNY MM)
Here's what is not working for Gstarsoft Co., Ltd.
Interest
At CNY 0.1 MM has Grown at 243.22%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)






