Valuation Update With 7 Day Price Move • May 28
Investor sentiment improves as stock rises 45% After last week's 45% share price gain to HK$3.27, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 17x in the Software industry in Hong Kong. Total returns to shareholders of 12% over the past three years. Annonce • May 26
Inspur Digital Enterprise Technology Limited Announces Board and Committee Changes, Effective May 26, 2026 Inspur Digital Enterprise Technology Limited announced that Ms. Li Chunxiang ("Ms. Li") has tendered her resignation as a non-executive Director, and a member of the Remuneration Committee of the Company with effect from 26 May 2026 due to her personal work commitments. The Board announced that with effect from 26 May 2026, Mr. Xie
Bingbing ("Mr. Xie") has been appointed as a non-executive Director, and a member of the Remuneration Committee of the Company. Mr. Xie, aged 39, graduated from Shandong University of Finance (currently known as Shandong University of Finance and Economics, majoring in Accounting and holding a Bachelor's Degree in Management. Mr. Xie has ample experience in finance, corporate management and capital management. He previously served as the assistant to general manager of Shandong Huitong Financial Leasing Co. Ltd.
deputy head of capital management department of Inspur Group and the director of Shandong Inspur Database Technology Co. Ltd. Currently, Mr. Xie serves as head of capital management department of Inspur Group Co., Limited. New Risk • May 19
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 46% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (46% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (14% average weekly change). Profit margins are more than 30% lower than last year (3.3% net profit margin). Valuation Update With 7 Day Price Move • May 08
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to HK$2.64, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 12x in the Software industry in Hong Kong. Total loss to shareholders of 18% over the past three years. Recent Insider Transactions • Apr 07
Chairman of the Board recently bought HK$187k worth of stock On the 1st of April, Daisen Wei bought around 80k shares on-market at roughly HK$2.34 per share. This transaction amounted to 44% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Daisen has been a buyer over the last 12 months, purchasing a net total of HK$281k worth in shares. Declared Dividend • Apr 01
Dividend of HK$0.04 announced Shareholders will receive a dividend of HK$0.04. Ex-date: 29th June 2026 Payment date: 7th August 2026 Dividend yield will be 1.6%, which is higher than the industry average of 0.8%. Sustainability & Growth The dividend has increased by an average of 11% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 126% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Annonce • Mar 31
Inspur Digital Enterprise Technology Limited announces Annual dividend, payable on August 07, 2026 Inspur Digital Enterprise Technology Limited announced Annual dividend of HKD 0.0400 per share payable on August 07, 2026, ex-date on June 29, 2026 and record date on June 30, 2026. New Risk • Mar 31
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Hong Kong stocks, typically moving 12% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (38% accrual ratio). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (12% average weekly change). Valuation Update With 7 Day Price Move • Mar 31
Investor sentiment deteriorates as stock falls 29% After last week's 29% share price decline to HK$2.18, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 23x in the Software industry in Hong Kong. Total loss to shareholders of 48% over the past three years. Annonce • Mar 31
Inspur Digital Enterprise Technology Limited, Annual General Meeting, Jun 17, 2026 Inspur Digital Enterprise Technology Limited, Annual General Meeting, Jun 17, 2026. New Risk • Mar 23
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 2.7% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (38% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. Annonce • Mar 16
Inspur Digital Enterprise Technology Limited to Report Fiscal Year 2025 Results on Mar 30, 2026 Inspur Digital Enterprise Technology Limited announced that they will report fiscal year 2025 results on Mar 30, 2026 Valuation Update With 7 Day Price Move • Feb 04
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to HK$4.27, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 34x in the Software industry in Hong Kong. Total loss to shareholders of 19% over the past three years. Valuation Update With 7 Day Price Move • Jan 08
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to HK$5.63, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 31x in the Software industry in Hong Kong. Total returns to shareholders of 32% over the past three years. Annonce • Nov 27
Inspur Digital Enterprise Technology Limited has completed a Follow-on Equity Offering in the amount of HKD 493.7282 million. Inspur Digital Enterprise Technology Limited has completed a Follow-on Equity Offering in the amount of HKD 493.7282 million.
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 67,634,000
Price\Range: HKD 7.3
Discount Per Security: HKD 0.0511
Transaction Features: Subsequent Direct Listing Annonce • Nov 18
Inspur Digital Enterprise Technology Limited has filed a Follow-on Equity Offering in the amount of HKD 493.7282 million. Inspur Digital Enterprise Technology Limited has filed a Follow-on Equity Offering in the amount of HKD 493.7282 million.
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 67,634,000
Price\Range: HKD 7.3
Discount Per Security: HKD 0.0511
Transaction Features: Subsequent Direct Listing Reported Earnings • Oct 02
First half 2025 earnings released: EPS: CN¥0.16 (vs CN¥0.093 in 1H 2024) First half 2025 results: EPS: CN¥0.16 (up from CN¥0.093 in 1H 2024). Revenue: CN¥4.34b (up 4.9% from 1H 2024). Net income: CN¥183.1m (up 73% from 1H 2024). Profit margin: 4.2% (up from 2.6% in 1H 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 23% growth forecast for the Software industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 57% per year but the company’s share price has increased by 73% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Sep 11
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to HK$10.83, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 29x in the Software industry in Hong Kong. Total returns to shareholders of 388% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$19.41 per share. Reported Earnings • Sep 03
First half 2025 earnings released: EPS: CN¥0.16 (vs CN¥0.093 in 1H 2024) First half 2025 results: EPS: CN¥0.16 (up from CN¥0.093 in 1H 2024). Revenue: CN¥4.34b (up 4.9% from 1H 2024). Net income: CN¥183.1m (up 73% from 1H 2024). Profit margin: 4.2% (up from 2.6% in 1H 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 23% growth forecast for the Software industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 57% per year whereas the company’s share price has increased by 58% per year. Annonce • Aug 15
Inspur Digital Enterprise Technology Limited to Report First Half, 2025 Results on Aug 31, 2025 Inspur Digital Enterprise Technology Limited announced that they will report first half, 2025 results on Aug 31, 2025 Recent Insider Transactions • Aug 06
Independent Non-Executive Director recently sold HK$2.0m worth of stock On the 30th of July, Lit Chor Wong sold around 196k shares on-market at roughly HK$10.11 per share. This transaction amounted to 100% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of HK$3.6m more than they bought in the last 12 months. Valuation Update With 7 Day Price Move • Jul 30
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to HK$10.38, the stock trades at a forward P/E ratio of 21x. Average trailing P/E is 25x in the Software industry in Hong Kong. Total returns to shareholders of 281% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$20.75 per share. Upcoming Dividend • Jun 20
Upcoming dividend of HK$0.08 per share Eligible shareholders must have bought the stock before 27 June 2025. Payment date: 08 August 2025. Payout ratio is a comfortable 22% but the company is not cash flow positive. Trailing yield: 1.0%. Lower than top quartile of Hong Kong dividend payers (7.5%). Lower than average of industry peers (3.0%). Reported Earnings • May 01
Full year 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2024 results: EPS: CN¥0.34 (up from CN¥0.18 in FY 2023). Revenue: CN¥8.20b (down 1.1% from FY 2023). Net income: CN¥384.7m (up 91% from FY 2023). Profit margin: 4.7% (up from 2.4% in FY 2023). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 20%. Earnings per share (EPS) exceeded analyst estimates by 14%. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 21% growth forecast for the Software industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 60% per year but the company’s share price has only increased by 42% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Apr 29
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to HK$7.85, the stock trades at a forward P/E ratio of 16x. Average trailing P/E is 25x in the Software industry in Hong Kong. Total returns to shareholders of 184% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$7.67 per share. Major Estimate Revision • Apr 08
Consensus EPS estimates increase by 10% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate increased from CN¥0.437 to CN¥0.482. Revenue forecast unchanged at CN¥11.4b. Net income forecast to grow 42% next year vs 53% growth forecast for Software industry in Hong Kong. Consensus price target of HK$7.15 unchanged from last update. Share price fell 20% to HK$5.23 over the past week. Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment improves as stock rises 9.3% After last week's 9.3% share price gain to HK$6.91, the stock trades at a forward P/E ratio of 15x. Average trailing P/E is 25x in the Software industry in Hong Kong. Total returns to shareholders of 138% over the past three years. New Risk • Apr 07
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Hong Kong stocks, typically moving 10% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Annonce • Apr 02
Inspur Digital Enterprise Technology Limited announces Annual dividend, payable on August 08, 2025 Inspur Digital Enterprise Technology Limited announced Annual dividend of HKD 0.0800 per share payable on August 08, 2025, ex-date on June 27, 2025 and record date on June 30, 2025. Declared Dividend • Apr 02
Dividend increased to HK$0.08 Dividend of HK$0.08 is 167% higher than last year. Ex-date: 27th June 2025 Payment date: 1st January 1970 Dividend yield will be 1.1%, which is higher than the industry average of 0.8%. Reported Earnings • Apr 01
Full year 2024 earnings released: EPS: CN¥0.34 (vs CN¥0.18 in FY 2023) Full year 2024 results: EPS: CN¥0.34 (up from CN¥0.18 in FY 2023). Revenue: CN¥8.20b (down 1.1% from FY 2023). Net income: CN¥384.7m (up 91% from FY 2023). Profit margin: 4.7% (up from 2.4% in FY 2023). The increase in margin was driven by lower expenses. Revenue is forecast to grow 30% p.a. on average during the next 2 years, compared to a 22% growth forecast for the Software industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 60% per year but the company’s share price has only increased by 23% per year, which means it is significantly lagging earnings growth. Annonce • Apr 01
Inspur Digital Enterprise Technology Limited, Annual General Meeting, Jun 17, 2025 Inspur Digital Enterprise Technology Limited, Annual General Meeting, Jun 17, 2025. Valuation Update With 7 Day Price Move • Mar 24
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to HK$6.66, the stock trades at a forward P/E ratio of 17x. Average trailing P/E is 26x in the Software industry in Hong Kong. Total returns to shareholders of 143% over the past three years. Annonce • Mar 18
Inspur Digital Enterprise Technology Limited to Report Fiscal Year 2024 Results on Mar 31, 2025 Inspur Digital Enterprise Technology Limited announced that they will report fiscal year 2024 results on Mar 31, 2025 Valuation Update With 7 Day Price Move • Mar 06
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to HK$6.23, the stock trades at a forward P/E ratio of 16x. Average trailing P/E is 32x in the Software industry in Hong Kong. Total returns to shareholders of 137% over the past three years. Valuation Update With 7 Day Price Move • Feb 10
Investor sentiment improves as stock rises 24% After last week's 24% share price gain to HK$5.46, the stock trades at a forward P/E ratio of 14x. Average trailing P/E is 26x in the Software industry in Hong Kong. Total returns to shareholders of 36% over the past three years. Valuation Update With 7 Day Price Move • Jan 15
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to HK$4.13, the stock trades at a forward P/E ratio of 11x. Average trailing P/E is 25x in the Software industry in Hong Kong. Total loss to shareholders of 15% over the past three years. Valuation Update With 7 Day Price Move • Dec 09
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to HK$3.75, the stock trades at a forward P/E ratio of 10x. Average trailing P/E is 19x in the Software industry in Hong Kong. Total loss to shareholders of 12% over the past three years. Valuation Update With 7 Day Price Move • Oct 01
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to HK$3.73, the stock trades at a forward P/E ratio of 10x. Average trailing P/E is 19x in the Software industry in Hong Kong. Total loss to shareholders of 16% over the past three years. Reported Earnings • Aug 29
First half 2024 earnings released: EPS: CN¥0.093 (vs CN¥0.043 in 1H 2023) First half 2024 results: EPS: CN¥0.093 (up from CN¥0.043 in 1H 2023). Revenue: CN¥4.14b (up 1.1% from 1H 2023). Net income: CN¥105.7m (up 115% from 1H 2023). Profit margin: 2.6% (up from 1.2% in 1H 2023). Revenue is forecast to grow 25% p.a. on average during the next 3 years, compared to a 19% growth forecast for the Software industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 77% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Annonce • Aug 14
Inspur Digital Enterprise Technology Limited to Report First Half, 2024 Results on Aug 27, 2024 Inspur Digital Enterprise Technology Limited announced that they will report first half, 2024 results on Aug 27, 2024 Upcoming Dividend • Jun 20
Upcoming dividend of HK$0.03 per share Eligible shareholders must have bought the stock before 27 June 2024. Payment date: 09 August 2024. Payout ratio is a comfortable 15% and this is well supported by cash flows. Trailing yield: 0.9%. Lower than top quartile of Hong Kong dividend payers (7.7%). Lower than average of industry peers (4.3%). Buy Or Sell Opportunity • May 30
Now 22% undervalued Over the last 90 days, the stock has risen 65% to HK$3.91. The fair value is estimated to be HK$5.00, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 51% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 22% per annum. Earnings are also forecast to grow by 38% per annum over the same time period. Buy Or Sell Opportunity • May 06
Now 22% undervalued Over the last 90 days, the stock has risen 94% to HK$3.97. The fair value is estimated to be HK$5.06, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 51% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 22% per annum. Earnings are also forecast to grow by 38% per annum over the same time period. Reported Earnings • May 03
Full year 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2023 results: EPS: CN¥0.18 (up from CN¥0.10 in FY 2022). Revenue: CN¥8.29b (up 19% from FY 2022). Net income: CN¥201.6m (up 70% from FY 2022). Profit margin: 2.4% (up from 1.7% in FY 2022). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 6.7%. Earnings per share (EPS) exceeded analyst estimates by 26%. Revenue is forecast to grow 22% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Software industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 102% per year but the company’s share price has only increased by 23% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Apr 11
Consensus EPS estimates increase by 17%, revenue downgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast fell from CN¥11.2b to CN¥10.3b. EPS estimate rose from CN¥0.231 to CN¥0.27. Net income forecast to grow 54% next year vs 61% growth forecast for Software industry in Hong Kong. Consensus price target up from HK$3.00 to HK$5.00. Share price rose 12% to HK$3.74 over the past week. Annonce • Mar 29
Inspur Digital Enterprise Technology Limited Proposes Final Dividend for the Year Ended 31 December 2023 Inspur Digital Enterprise Technology Limited proposed Final Dividend of HKD 0.03 per share for the Year ended 31 December 2023. Ex-dividend date is 27 June 2024. Record date is 05 July 2024. Payment date is 09 August 2024. Date of shareholders' approval is 20 June 2023. Reported Earnings • Mar 29
Full year 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2023 results: EPS: CN¥0.18 (up from CN¥0.10 in FY 2022). Revenue: CN¥8.29b (up 19% from FY 2022). Net income: CN¥201.6m (up 70% from FY 2022). Profit margin: 2.4% (up from 1.7% in FY 2022). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 6.7%. Earnings per share (EPS) exceeded analyst estimates by 26%. Revenue is forecast to grow 26% p.a. on average during the next 2 years, compared to a 19% growth forecast for the Software industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 102% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Annonce • Mar 16
Inspur Digital Enterprise Technology Limited to Report Fiscal Year 2023 Final Results on Mar 28, 2024 Inspur Digital Enterprise Technology Limited announced that they will report fiscal year 2023 final results on Mar 28, 2024 Valuation Update With 7 Day Price Move • Mar 04
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to HK$2.70, the stock trades at a forward P/E ratio of 13x. Average trailing P/E is 8x in the Software industry in Hong Kong. Total returns to shareholders of 16% over the past three years. Annonce • Feb 01
Inspur Digital Enterprise Technology Limited Announces Board Changes The board of directors of Inspur Digital Enterprise Technology Limited announced that Mr. Wang Xingshan notified the Board of his retirement plans and will retire and resign as an executive Director, the Chairman of the Board, and the Chairman of the Nomination Committee of the Company due to having reached his age of retirement with effect from 1 February 2024. The Board further announced that with effect from 1 February 2024, Mr. Zhao Zhen has been appointed as an executive Director, the Chairman of the Board, and the Chairman of the Nomination Committee of the Company. The biographical details of Mr. Zhao are set out below: Mr. Zhao Zhen, aged 49, has worked in Inspur Group Limited and its subsidiaries (together, the Inspur Group) for over 26 years. Mr. Zhao has more than 26 years of extensive experience in human resources management. Mr. Zhao is currently the senior vice president and the head of human resources department of Inspur Group Limited. Mr. Zhao is also the Chaiman of the Board of the Company, as well as a director of Inspur Software Technology Company Limited. In 2020, Mr. Zhao was awarded Outstanding Enterprise Award for Enterprise Human Resources Development and Management" by Human Resources Development of China. Mr. Zhao holds a Bachelor's degree in economics from Shandong University and a Master of Business Administration from Tianjin University. Valuation Update With 7 Day Price Move • Jan 26
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to HK$2.17, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 27x in the Software industry in Asia. Total returns to shareholders of 12% over the past three years. Valuation Update With 7 Day Price Move • Jan 08
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to HK$1.89, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 26x in the Software industry in Asia. Total returns to shareholders of 8.8% over the past three years. Valuation Update With 7 Day Price Move • Nov 29
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to HK$2.35, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 28x in the Software industry in Asia. Total returns to shareholders of 27% over the past three years. New Risk • Nov 07
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Hong Kong stocks, typically moving 9.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (43% accrual ratio). Minor Risk Share price has been volatile over the past 3 months (9.9% average weekly change). Valuation Update With 7 Day Price Move • Nov 01
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to HK$2.15, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 26x in the Software industry in Asia. Total returns to shareholders of 19% over the past three years. Valuation Update With 7 Day Price Move • Sep 08
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to HK$1.98, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 29x in the Software industry in Asia. Total loss to shareholders of 5.5% over the past three years. New Risk • Sep 01
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 43% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (43% accrual ratio). Minor Risk Share price has been volatile over the past 3 months (9.6% average weekly change). Reported Earnings • Sep 01
First half 2023 earnings released: EPS: CN¥0.043 (vs CN¥0.025 in 1H 2022) First half 2023 results: EPS: CN¥0.043 (up from CN¥0.025 in 1H 2022). Revenue: CN¥4.10b (up 91% from 1H 2022). Net income: CN¥49.2m (up 70% from 1H 2022). Profit margin: 1.2% (down from 1.3% in 1H 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 25% growth forecast for the Software industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 93% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Annonce • Aug 18
Inspur Digital Enterprise Technology Limited to Report First Half, 2023 Results on Aug 31, 2023 Inspur Digital Enterprise Technology Limited announced that they will report first half, 2023 results on Aug 31, 2023 Valuation Update With 7 Day Price Move • Jul 05
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to HK$2.50, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 33x in the Software industry in Asia. Total loss to shareholders of 19% over the past three years. Upcoming Dividend • Jun 26
Upcoming dividend of HK$0.02 per share at 0.6% yield Eligible shareholders must have bought the stock before 03 July 2023. Payment date: 10 August 2023. Trailing yield: 0.6%. Lower than top quartile of Hong Kong dividend payers (8.0%). In line with average of industry peers (0.7%). Annonce • May 26
Inspur Digital Enterprise Technology Limited Proposes Final Dividend for the Year Ended 31 December 2022, Payable on August 10, 2023 Inspur Digital Enterprise Technology Limited at its annual general meeting to be held on 26 June 2023 proposed to declare a final dividend of HKD 0.02 per share of the Company for the year ended 31 December 2022. For determining the entitlement to the Proposed Final Dividend (subject to approval by Shareholders at the AGM). The register of members of the Company will be closed from 5 July 2023 to 7 July 2023, both days inclusive, during which no transfer of Shares will be registered. Ex-dividend date is June 30, 2023, record date is July 7, 2023 and payment date is August 10, 2023. Annonce • May 25
Inspur Digital Enterprise Technology Limited, Annual General Meeting, Jun 26, 2023 Inspur Digital Enterprise Technology Limited, Annual General Meeting, Jun 26, 2023, at 10:00 China Standard Time. Location: Flats B&C, 30/F., Tower A, Billion Center, 1 Wang Kwong Road Kowloon Bay Kowloon Hong Kong Agenda: To receive and adopt the audited consolidated financial statements and the reports of the Board and auditors of the Company for the year ended 31 December 2022; to re-elect Mr. Wang Xingshan as an executive Director; to re-elect Mr. Wang Yusen as an executive Director; to re-elect Mr. Ding as an independent non-executive Director; and to authorise the Board to fix the Directors' remuneration; to appoint SHINEWING (HK) CPA Limited as auditor of the Company and to authorise the Board to fix their remuneration; to declare a final dividend of HK$0.02 per share of the Company for the year ended 31 December 2022; to consider the amendments to the existing memorandum and articles of association; and to consider other matters. Valuation Update With 7 Day Price Move • May 25
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to HK$2.77, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 31x in the Software industry in Asia. Total returns to shareholders of 20% over the past three years. Valuation Update With 7 Day Price Move • Apr 24
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to HK$3.80, the stock trades at a trailing P/E ratio of 32.1x. Average forward P/E is 34x in the Software industry in Hong Kong. Total returns to shareholders of 55% over the past three years. Buying Opportunity • Apr 21
Now 26% undervalued after recent price drop Over the last 90 days, the stock is down 8.4%. The fair value is estimated to be HK$5.45, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 35% over the last 3 years. Earnings per share has grown by 2.7%. Revenue is forecast to grow by 18% in 2 years. Earnings is forecast to grow by 68% in the next 2 years. Valuation Update With 7 Day Price Move • Jan 03
Investor sentiment improved over the past week After last week's 25% share price gain to HK$4.05, the stock trades at a trailing P/E ratio of 58.1x. Average trailing P/E is 16x in the Software industry in Hong Kong. Total returns to shareholders of 28% over the past three years. Valuation Update With 7 Day Price Move • Dec 06
Investor sentiment improved over the past week After last week's 37% share price gain to HK$4.49, the stock trades at a trailing P/E ratio of 64.4x. Average trailing P/E is 13x in the Software industry in Hong Kong. Total returns to shareholders of 39% over the past three years. Valuation Update With 7 Day Price Move • Nov 21
Investor sentiment improved over the past week After last week's 44% share price gain to HK$3.39, the stock trades at a trailing P/E ratio of 48.6x. Average trailing P/E is 12x in the Software industry in Hong Kong. Total returns to shareholders of 12% over the past three years. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Non-Executive Director Xiangqian Ding was the last independent director to join the board, commencing their role in 2015. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model.