Inspur International’s (Inspur) 2021 results beat our forecasts regarding both revenue and net profit. The Company is one of the few reporting growth in both cloud and non-cloud business, along with lower losses in the cloud business segment. This is in line with our discussion in our previous update. We expect Inspur to remain a beneficiary of increasing localization, especially with large enterprises, which should support its operating performance. We reiterate our ADD rating, with a new target price of HK$5.44 (SOTP – 15x 2022 P/E (down from 19x) for non-cloud services and 4x 2022 P/S (down from 6x) for cloud business).