Executive Summary
Inspur International Limited, an investment holding company, provides software development, cloud, and Internet of Things (IoT) services in the People’s Republic of China.
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet and undervalued.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-4.6%
596
6.2%
HK Software
4.0%
HK Market
1 Year Return
-47.1%
596
4.9%
HK Software
-20.1%
HK Market
Return vs Industry: 596 underperformed the Hong Kong Software industry which returned 4.9% over the past year.
Return vs Market: 596 underperformed the Hong Kong Market which returned -20.1% over the past year.
Shareholder returns
| 596 | Industry | Market | |
|---|---|---|---|
| 7 Day | -4.6% | 6.2% | 4.0% |
| 30 Day | -32.9% | -5.3% | -11.3% |
| 90 Day | -26.9% | 23.6% | -15.6% |
| 1 Year | -46.4%-47.1% | 5.2%4.9% | -17.2%-20.1% |
| 3 Year | 40.5%34.9% | 31.4%30.0% | -2.9%-12.7% |
| 5 Year | 30.0%20.6% | 6.0%0.8% | -6.8%-21.8% |
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
4 days ago | Simply Wall St
Volatility 101: Should Inspur International (HKG:596) Shares Have Dropped 46%?3 weeks ago | Simply Wall St
Examining Inspur International Limited’s (HKG:596) Weak Return On Capital Employed1 month ago | Simply Wall St
Do Inspur International's (HKG:596) Earnings Warrant Your Attention?Valuation
Is Inspur International undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 596 (HK$2.28) is trading below our estimate of fair value (HK$6.33)
Significantly Below Fair Value: 596 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 596 is good value based on its PE Ratio (8.6x) compared to the Software industry average (15.3x).
PE vs Market: 596 is good value based on its PE Ratio (8.6x) compared to the Hong Kong market (9x).
Price to Earnings Growth Ratio
PEG Ratio: 596 is good value based on its PEG Ratio (0.4x)
Price to Book Ratio
PB vs Industry: 596 is overvalued based on its PB Ratio (1.2x) compared to the HK Software industry average (1x).
Next Steps
Future Growth
How is Inspur International forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
21.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 596's forecast earnings growth (21.4% per year) is above the savings rate (1.6%).
Earnings vs Market: 596's earnings (21.4% per year) are forecast to grow faster than the Hong Kong market (12.8% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 596's revenue (21.2% per year) is forecast to grow faster than the Hong Kong market (9.1% per year).
High Growth Revenue: 596's revenue (21.2% per year) is forecast to grow faster 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 (14.3%).
Next Steps
Past Performance
How has Inspur International performed over the past 5 years?
75.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 596 has high quality earnings.
Growing Profit Margin: 596's current net profit margins (11.1%) are lower than last year (11.4%).
Past Earnings Growth Analysis
Earnings Trend: 596 has become profitable over the past 5 years, growing earnings by 75.3% per year.
Accelerating Growth: 596's earnings growth over the past year (5%) is below its 5-year average (75.3% per year).
Earnings vs Industry: 596 earnings growth over the past year (5%) underperformed the Software industry 11.7%.
Return on Equity
High ROE: 596's Return on Equity (13.9%) 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$1.8B) exceed its short term liabilities (HK$1.3B).
Long Term Liabilities: 596's short term assets (HK$1.8B) exceed its long term liabilities (HK$262.6M).
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
Inventory Level: 596 has a low level of unsold assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if 596's debt is covered by short term assets.
Next Steps
Dividend
What is Inspur International's current dividend yield, its reliability and sustainability?
1.75%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 596's dividend (1.75%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.67%).
High Dividend: 596's dividend (1.75%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.33%).
Stability and Growth of Payments
Stable Dividend: 596's dividend payments have been volatile in the past 10 years.
Growing Dividend: 596's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (15.1%), 596's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 596's dividends in 3 years are forecast to be thoroughly covered by earnings (12.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.1yrs
Average management tenure
CEO
Kong Eric (49yo)
1.58s
Tenure
HK$7,796,000
Compensation
Mr. Eric Kong Lee has been President, Chief Operating Officer and Executive Director of Inspur International Limited since August 1, 2017 and its Chief Executive Officer since August 17, 2018. Mr. Lee serv ...
CEO Compensation Analysis
Compensation vs Market: Kong's total compensation ($USD1.01M) is above average for companies of similar size in the Hong Kong market ($USD335.35K).
Compensation vs Earnings: Kong's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 7.92yrs | HK$5.53m | no data | |
| CEO, President | 1.58yrs | HK$7.80m | no data | |
| Executive Director | 4.58yrs | HK$1.86m | no data | |
| Chief Financial Officer | 1.58yrs | no data | no data | |
| Compliance Officer & Non-Executive Director | 6.67yrs | HK$118.00k | 0.00035% HK$9.1k | |
| Joint Secretary | 8.58yrs | no data | no data | |
| Joint Secretary | 8.58yrs | no data | no data |
5.1yrs
Average Tenure
48yo
Average Age
Experienced Management: 596's management team is seasoned and experienced (5.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 7.92yrs | HK$5.53m | no data | |
| CEO, President | 1.58yrs | HK$7.80m | no data | |
| Executive Director | 4.58yrs | HK$1.86m | no data | |
| Compliance Officer & Non-Executive Director | 6.67yrs | HK$118.00k | 0.00035% HK$9.1k | |
| Independent Non Executive Director | 17yrs | HK$247.00k | no data | |
| Independent Non-Executive Director | 5.92yrs | HK$187.00k | no data | |
| Independent Non-Executive Director | 4.25yrs | HK$187.00k | no data |
5.9yrs
Average Tenure
57yo
Average Age
Experienced Board: 596's board of directors are considered experienced (5.9 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.
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$2.597b
- 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 |
Biography
Inspur International Limited, an investment holding company, provides software development, cloud, and Internet of Things (IoT) services in the People’s Republic of China. The company operates through Management Software and Cloud Services, and IoT Solutions segments. It is also involved in the trading of computer products, as well as sale of information technology peripherals and software; and property investment activities. The company was incorporated in 2003 and is based in Kowloon Bay, Hong Kong. Inspur International Limited is considered a Red Chip company due to its listing on the Hong Kong Stock Exchange. Inspur International Limited is a subsidiary of Inspur Overseas Investment Limited.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/28 12:35 |
| End of Day Share Price | 2020/03/27 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.