Executive Summary
Inspur International Limited, an investment holding company, provides software development and other software services, and cloud services in the People’s Republic of China. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet and fair value.
Share Price & News
How has Inspur International's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 596 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: 596's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
20.5%
596
4.1%
HK Software
2.2%
HK Market
1 Year Return
-37.9%
596
167.4%
HK Software
7.2%
HK Market
Return vs Industry: 596 underperformed the Hong Kong Software industry which returned 164.3% over the past year.
Return vs Market: 596 underperformed the Hong Kong Market which returned 7.5% over the past year.
Shareholder returns
| 596 | Industry | Market | |
|---|---|---|---|
| 7 Day | 20.5% | 4.1% | 2.2% |
| 30 Day | 17.6% | 17.8% | 8.4% |
| 90 Day | 5.3% | 43.7% | 15.6% |
| 1 Year | -37.9%-37.9% | 168.6%167.4% | 11.4%7.2% |
| 3 Year | -10.3%-12.3% | 224.9%221.3% | -3.4%-13.5% |
| 5 Year | 65.3%55.0% | 366.2%355.5% | 65.4%37.4% |
Long-Term Price Volatility Vs. Market
How volatile is Inspur International's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 weeks ago | Simply Wall St
What Kind Of Investors Own Most Of Inspur International Limited (HKG:596)?1 month ago | Simply Wall St
Did Inspur International Limited (HKG:596) Insiders Sell Shares?2 months ago | Simply Wall St
Estimating The Intrinsic Value Of Inspur International Limited (HKG:596)Valuation
Is Inspur International undervalued compared to its fair value and its price relative to the market?
23.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 596 (HK$2) is trading below our estimate of fair value (HK$2.6)
Significantly Below Fair Value: 596 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 596 is poor value based on its PE Ratio (56x) compared to the HK Software industry average (22.2x).
PE vs Market: 596 is poor value based on its PE Ratio (56x) compared to the Hong Kong market (11.5x).
Price to Earnings Growth Ratio
PEG Ratio: 596 is good value based on its PEG Ratio (0.8x)
Price to Book Ratio
PB vs Industry: 596 is overvalued based on its PB Ratio (1.2x) compared to the HK Software industry average (0.9x).
Next Steps
Future Growth
How is Inspur International forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
71.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 596's forecast earnings growth (71.2% per year) is above the savings rate (1.5%).
Earnings vs Market: 596's earnings (71.2% per year) are forecast to grow faster than the Hong Kong market (21% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 596's revenue (10.8% per year) is forecast to grow slower than the Hong Kong market (14.1% per year).
High Growth Revenue: 596's revenue (10.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 596's Return on Equity is forecast to be low in 3 years time (4.2%).
Next Steps
Past Performance
How has Inspur International performed over the past 5 years?
42.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 596 has a large one-off loss of HK$44.3M impacting its June 30 2020 financial results.
Growing Profit Margin: 596's current net profit margins (1.5%) are lower than last year (11.1%).
Past Earnings Growth Analysis
Earnings Trend: 596 has become profitable over the past 5 years, growing earnings by 42.8% per year.
Accelerating Growth: 596's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 596 had negative earnings growth (-86.5%) over the past year, making it difficult to compare to the Software industry average (-7.4%).
Return on Equity
High ROE: 596's Return on Equity (1.3%) is considered low.
Next Steps
Financial Health
How is Inspur International's financial position?
Financial Position Analysis
Short Term Liabilities: 596's short term assets (HK$1.9B) exceed its short term liabilities (HK$1.6B).
Long Term Liabilities: 596's short term assets (HK$1.9B) exceed its long term liabilities (HK$280.5M).
Debt to Equity History and Analysis
Debt Level: 596 is debt free.
Reducing Debt: 596 had no debt 5 years ago.
Debt Coverage: 596 has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: 596 has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is Inspur International current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate 596's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate 596's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if 596's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if 596's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: 596 is not paying a notable dividend for the Hong Kong market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of 596's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.9yrs
Average management tenure
CEO
Kong Lee Eric (51 yo)
2.42yrs
Tenure
HK$7,796,000
Compensation
Mr. Eric Kong Lee has been President, Chief Operating Officer of Inspur International Limited since August 1, 2017 and served as its Executive Director since August 1, 2017 until December 8, 2020 and its C...
CEO Compensation Analysis
Compensation vs Market: Kong Lee's total compensation ($USD1.01M) is above average for companies of similar size in the Hong Kong market ($USD305.97K).
Compensation vs Earnings: Kong Lee's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 8.75yrs | HK$5.53m | no data | |
| CEO, President & COO | 2.42yrs | HK$7.80m | no data | |
| Executive Director | 5.42yrs | HK$1.86m | no data | |
| CFO & Executive Director | 0.083yr | no data | no data | |
| Compliance Officer & Non-Executive Director | 7.5yrs | HK$118.00k | 0.00035% HK$ 8.0k | |
| Joint Secretary | 9.42yrs | no data | no data | |
| Joint Secretary | 9.42yrs | no data | no data |
5.9yrs
Average Tenure
49yo
Average Age
Experienced Management: 596's management team is seasoned and experienced (5.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 8.75yrs | HK$5.53m | no data | |
| Executive Director | 5.42yrs | HK$1.86m | no data | |
| CFO & Executive Director | 0.083yr | no data | no data | |
| Compliance Officer & Non-Executive Director | 7.5yrs | HK$118.00k | 0.00035% HK$ 8.0k | |
| Independent Non Executive Director | 17.83yrs | HK$247.00k | no data | |
| Independent Non-Executive Director | 6.75yrs | HK$187.00k | no data | |
| Independent Non-Executive Director | 5.08yrs | HK$187.00k | no data |
6.8yrs
Average Tenure
58yo
Average Age
Experienced Board: 596's board of directors are considered experienced (6.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Inspur International Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Inspur International Limited
- Ticker: 596
- Exchange: SEHK
- Founded: 2003
- Industry: Application Software
- Sector: Software
- Market Cap: HK$2.278b
- Shares outstanding: 1.14b
- Website: https://www.inspur.com.hk
Number of Employees
Location
- Inspur International Limited
- Tower A, Billion Center
- Room B&C
- Kowloon Bay
- Kowloon
- Hong Kong
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 596 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Apr 2004 |
| L1CC | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Apr 2004 |
| INPR.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Apr 2004 |
Biography
Inspur International Limited, an investment holding company, provides software development and other software services, and cloud services in the People’s Republic of China. The company operates through Cl...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/16 10:33 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.