Equity Analysis /
Hong Kong

HK : Inspur International - 2021 results a strong beat

    Mark Po
    Mark Po

    Research Analyst

    CGS-CIMB
    31 March 2022
    Published by

    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).