Inspur Digital Enterprise Technology Ltd. (596) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Inkeverse Group Ltd.

Kuaishou Technology

Inspur Digital Enterprise Technology Ltd.

VSTECS Holdings Ltd.

TravelSky Technology Ltd.

Alibaba Health Information Technology Ltd.

Flowing Cloud Technology Ltd.

Yeahka Ltd.

Yidu Tech, Inc.

Linklogis, Inc.

BoardWare Intelligence Technology Ltd.

Why is Inspur Digital Enterprise Technology Ltd. ?

High Management Efficiency with a high ROE of 1,362.44%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 7.69

Healthy long term growth as Net Sales has grown by an annual rate of 64.61% and Operating profit at 610.21%

Negative results in Dec 25

INTEREST COVERAGE RATIO(Q) Lowest at 996.49
NET SALES(Q) Lowest at HKD 3,272.95 MM
INTEREST(Q) Highest at HKD 16.76 MM

With ROE of 12.54%, it has a Fair valuation with a 1.51 Price to Book Value

Over the past year, while the stock has generated a return of -67.73%, its profits have risen by 913.5%

Below par performance in long term as well as near term

Along with generating -67.73% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Inspur Digital Enterprise Technology Ltd. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Inspur Digital Enterprise Technology Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Inspur Digital Enterprise Technology Ltd.

-67.73%

-0.50

63.73%

Hang Seng Hong Kong

8.76%

0.45

19.63%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

64.61%

EBIT Growth (5y)

610.21%

EBIT to Interest (avg)

7.69

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.40

Sales to Capital Employed (avg)

0.98

Tax Ratio

10.29%

Dividend Payout Ratio

17.91%

Pledged Shares

Institutional Holding

ROCE (avg)

1,872.12%

ROE (avg)

1,362.44%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.51

EV to EBIT

11.72

EV to EBITDA

11.54

EV to Capital Employed

1.54

EV to Sales

1.77

PEG Ratio

Dividend Yield

0.26%

ROCE (Latest)

13.18%

ROE (Latest)

12.54%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -28.83% (YoY

CASH AND EQV(HY)

Highest at HKD 1,488.64 MM

-11What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 996.49

NET SALES(Q)

Lowest at HKD 3,272.95 MM

INTEREST(Q)

Highest at HKD 16.76 MM

PRE-TAX PROFIT(Q)

Fallen at -69.64%

EPS(Q)

Lowest at HKD 0.05

Here's what is working for Inspur Digital Enterprise Technology Ltd.

Cash and Eqv

Highest at HKD 1,488.64 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -28.83% (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 HKD 53.08 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (HKD MM)

Depreciation

At HKD 53.08 MM has Grown at 82.54%

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 (HKD MM)

Here's what is not working for Inspur Digital Enterprise Technology Ltd.

Interest Coverage Ratio

Lowest at 996.49

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at HKD 3,272.95 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (HKD MM)

Net Sales

Fallen at -26.38%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (HKD MM)

Interest

Highest at HKD 16.76 MM

in the last five periods and Increased by 76.22% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (HKD MM)

Pre-Tax Profit

Fallen at -69.64%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

EPS

Lowest at HKD 0.05

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (HKD)

Non Operating Income

Highest at HKD 1.43 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income