Report date: 2026-09-24 | Price data: Quotes as of the close on September 23, 2026; the September 24 close has not been verified | Sources: 25 | Report engine: v2 (latest)

View PDF Download Word Download Markdown

Price history

Loading price history...

Latest market data

Close	65.93 (-1.86% on the day; -8.62% over 5 sessions; -22.98% over 20 sessions)
Market cap	CNY 96.82 billion
P/E (TTM)	21.2x (20th percentile over 5.2 years)
P/B (MRQ)	3.95x (72th percentile over 5.2 years)
P/S (TTM)	0.57x (23th percentile over 5.2 years)
52-week range	55.32 (2026-03-30) – 96.37 (2026-07-23)
Moving averages	MA5 68.27 / MA10 69.82 / MA20 72.25 / MA60 77.12
MACD (12,26,9)	DIF -2.422, DEA -1.929, histogram -0.987
RSI	RSI6 21.3 / RSI14 35
Bollinger bands (20,2)	Upper 83.04 / middle 72.25 / lower 61.45
Volume	0.48x the 20-day average
One-week range (about 68% coverage)	60.97 – 71.75 (-7.5% ~ +8.8%)
One-week range (about 95% coverage)	58.11 – 80.44 (-11.9% ~ +22.0%)

As of the 2026-09-30 close; calculated from daily price data (adjusted prices) and refreshed automatically each trading day. The one-week range reflects historical volatility only and is not a forecast. The report below was written on 2026-09-24; its prices and short-term scenarios reflect data at that time.

Inspur Electronic Information Industry Co., Ltd. (000977)

Individual Stock Analysis Report | Industry: Servers and IT Infrastructure | Report Date: September 24, 2026 | Market data as of September 23, 2026 close; September 24 close unverified

This report was automatically compiled and generated by AI based on public information, for reference only, and does not constitute investment advice.

Core Conclusion: Profit recovery has emerged but revenue and cash flow have not kept pace; low valuation still depends on earnings realization

Key Data	Value
Closing Price (Daily Change)	RMB 71.27 (-1.22%)
Total Market Cap	Approximately RMB 104.658 billion
PE (TTM)	Approximately 22.92x
PB	4.27x (another source: 4.21x)
Dividend Yield	Approximately 0.06%
52-Week Range	Approximately RMB 55.36–96.37
Turnover / Turnover Rate	RMB 2.726 billion / 2.60%

Market data as of: Market data as of September 23, 2026 close; September 24 close unverified

1. Investment Highlights

Strong profit rebound in the interim report, but revenue and cash realization are weak: 2026H1 net profit attributable to parent was RMB 2.952 billion, +269.59% YoY; non-GAAP net profit +260.08%; revenue grew only +5.22%, and net operating cash flow was -RMB 7.493 billion.
Server volume ramp is the main growth engine, but margin recovery still needs consolidation: In 2025, servers accounted for 93.82% of revenue with +47.69% YoY growth; gross margin was only 4.52%; 2026H1 overall gross margin recovered to 8.74%, but revenue growth remains low.
PE is at a historically low percentile; the low valuation is built on high-growth forecasts: September 23 close was RMB 71.27, PE-TTM approximately 22.92x, PB approximately 4.27x; 2026E consensus net profit is RMB 4.841 billion, corresponding to approximately 21.6x PE on market cap; the average target price of RMB 109.29 represents institutional views.

Market Expectations and Evidence

What the market is pricing in: Consensus net profit growth for 2026–2028 is approximately 100.6%, 31.9%, and 27.6% respectively; the current approximately 21.6x 2026E PE implies continued rapid profit growth and gross margin recovery.
What the evidence shows: H1 non-GAAP profit surged and gross margin rose to 8.74%, supporting the recovery logic; however, revenue grew only 5.22% and operating cash flow was -RMB 7.493 billion, showing a divergence between profit and cash conversion, and the realization of earnings forecasts still needs subsequent verification.

Evidence leans: Balanced; Confidence: Medium

The interim report showed clear improvement in profit and gross margin, but revenue growth was low and cash flow turned negative; the consensus forecast range is wide, and sustainability has not yet been confirmed.

2. Business and Competitiveness

2.1 Business Structure

The company sells servers, storage, networking, and other IT infrastructure products to internet, telecom carrier, and government/enterprise customers, and provides solutions and services. Revenue mainly depends on hardware shipments and product configurations.

Business Segment	Revenue Share	Gross Margin	Revenue Growth	Key Points
Server products	93.82% (2025)	4.52% (2025)	47.69% (2025 YoY)	Absolute core business and the main source of revenue growth for the year
Storage, switching, and other products	5.93% (2025)	8.74% (2025)	-2.80% (2025 YoY)	Revenue declined slightly; gross margin increased 0.89 percentage points YoY
Other	0.25% (2025)	—	37.42% (2025 YoY)	Gross margin not separately disclosed in annual report

2.2 Competitive Advantages

Competitive Advantage Strength: Medium

Scale and delivery: Media citing IDC states that 2024 China x86 server share was approximately 30.8%, ranking first; this is not audited annual report data.
Engineering capability: The annual report lists AI servers, liquid cooling products, and intelligent computing center project deployments.
R&D and ecosystem: The company disclosed more than 20,000 valid patents and participation in the release of over 300 standards, reflecting the scale of investment but not equivalent to pricing power.

Main threats: Server gross margin is low and declined in 2025; rising chip and memory prices or supply constraints, as well as increased bargaining power of top customers, may make scale growth difficult to convert into profit.

2.3 Industry Chain Position and Profit Trends

Key inputs include processors, AI accelerator chips, memory, storage, network interconnects, motherboards, power supplies, and cooling; the annual report does not disclose the cost share of each category.
For key chips, memory, and other standardized or scarce components, the company is closer to a price taker; bargaining room mainly comes from scale procurement, supply chain coordination, and configuration design; the top five suppliers accounted for 74.01% of procurement, with the largest at 33.14% (2025 annual report).
Customers cover internet, telecom carriers, government, finance, healthcare, education, and manufacturing sectors; the annual report does not disclose the specific identities of anonymous customers.
Servers are sold to enterprises and large institutions, commonly through tenders, customization, and bulk procurement; customers have strong bargaining power, and large-volume orders do not necessarily bring higher unit gross margin.
The 2025 annual report disclosed that the top five customers accounted for 71.29% of sales, with the largest customer at 39.37%; customers are anonymous, and identity and related-party relationships cannot be verified. This concentration is based on the annual report basis.
At end-2025, accounts receivable were RMB 13.051 billion, approximately 7.9% of revenue and approximately 5.4x net profit attributable to parent; turnover days were approximately 27 days (database metric). Inventory was RMB 46.508 billion, accounting for 55.50% of total assets; contract liabilities were RMB 19.506 billion, providing some financial buffer.

Year	Gross Margin	Net Margin	Reason for Change
2022	Approximately 11.16%	Approximately 2.96%	Annual report did not quantify annual drivers
2023	Approximately 10.04%	Approximately 2.73%	Hardware volume expansion did not simultaneously improve profit margin
2024	Approximately 6.90%	Approximately 1.99%	Gross margin continued to decline; causes not quantified
2025	Approximately 4.88%	Approximately 1.46%	Costs grew faster than revenue; annual report industry table showed 4.77%

The company is positioned in the midstream server hardware and system integration segment of the AI computing power industry chain, currently with low gross margin and margin pressure; further improvement depends on a higher share of high-value-added AI systems, supply chain cost control, and product mix optimization. Net margin is based on the database's net sales margin basis, and the specific contribution of cost changes is not disclosed.

2.4 Industry and Peer Comparison

AI computing power demand is driving server shipment growth. Inspur's 2025 revenue growth mainly came from server sales; however, hardware competition, procurement costs, and customer bargaining power are pressuring profit margins.

Company	Positioning	Comparable Data	Difference from the Company
Sugon (603019)	Servers, storage, supercomputing, and software services	2025 revenue RMB 14.964 billion, gross margin 30.58%; PE(TTM) approximately 50.5x	More diversified business structure, smaller scale than Inspur, higher overall gross margin
Unisplendour (000938)	ICT infrastructure, services, and distribution	2025 revenue RMB 96.748 billion, gross margin approximately 14.59%; PE(TTM) approximately 34.24x	Includes H3C and distribution businesses; overall gross margin cannot represent server products
ZTE (000063)	Communications equipment and government/enterprise business	2025 revenue RMB 133.896 billion, gross margin 30.25%; PE(TTM) approximately 46.6x	Comprehensive communications vendor; government/enterprise business includes servers and storage; business structure differs significantly

Inspur's 2025 revenue scale leads the above comparable companies, but its overall and server gross margins are relatively low. Peer gross margins include software, services, communications systems, or distribution businesses, and PE is on a whole-company basis, so they cannot be directly regarded as pure server business valuations.

3. Financial Quality

3.1 Operating Performance

Reporting Period	Operating Revenue	YoY	Net Profit Attributable to Parent	YoY	Non-GAAP YoY	Gross Margin
2026 H1	RMB 84.379 billion	5.22%	RMB 2.952 billion	269.59%	260.08%	8.74%
2025 Annual	RMB 164.782 billion	43.25%	RMB 2.413 billion	5.20%	11.10%	4.77%
2024 Annual	RMB 115.029 billion	74.24%	RMB 2.294 billion	Approximately 29.66%	Approximately 71.38%	6.75%

2024 uses the restated comparative basis from the 2025 annual report; the latest report is the 2026 interim report.

2026H1 gross margin recovery drove substantial growth in non-GAAP profit, but revenue growth was relatively low; operating cash flow turned negative, inventory, prepayments, and accounts receivable increased, and profit diverged from cash conversion.

3.2 Financial Health Check

Metric	Value	Assessment	Explanation
Operating Cash Flow / Net Profit Attributable to Parent	2026H1: -2.54x	Watch	Cash flow was negative, clearly diverging from book profit.
Debt-to-Asset Ratio	End-June 2026: 77.20%	Watch	Increased from end-2025; working capital pressure needs monitoring.
Inventory / Total Assets	End-June 2026: 48.29%	Watch	Inventory increased from year-end; capital turnover and impairment risks rose.
ROE	2025: 11.55%; 2026H1: 12.74%	Average	Profitability is recovering; half-year metrics should not be directly annualized.

4. Valuation and Market Expectations

4.1 Valuation Level

Metric	Current	Own History	Peer Comparison
PE(TTM)	Approximately 22.92x (2026-09-23)	Historical percentile approximately 3%; median 35.29x (as of 2026-09-18)	IT equipment industry median 51.13x
PB	Approximately 4.27x (2026-09-23)	—	IT equipment industry median 3.01x
Dividend Yield	Approximately 0.06%	—	—

The current PE is below its own historical median and the broad IT equipment industry median, while PB is above the industry median. The historically low PE percentile is affected by the large 2026H1 profit increase, and the historical window is not clearly specified; a low valuation cannot be directly equated with undervaluation.

4.2 Consensus Forecast

Year	Operating Revenue	Net Profit Attributable to Parent	Net Profit Growth	Earnings Per Share (EPS)
2026E	RMB 216.711 billion	RMB 4.841 billion	Approximately 100.6%	RMB 3.30
2027E	—	RMB 6.386 billion	Approximately 31.9%	RMB 4.35
2028E	—	RMB 8.145 billion	Approximately 27.6%	RMB 5.55

Tonghuashun as of 2026-09-23: net profit forecasts cover 2026/27/28 with 20/20/19 analysts; profit ranges are RMB 2.890–6.737 billion, RMB 3.799–10.574 billion, and RMB 5.018–15.241 billion, respectively. The 2026 revenue average has no coverage count or range, and 2027–2028 revenue forecasts are unverified.

4.3 Institutional Views

Futu as of 2026-09-20 compiled an average target price of RMB 109.29, with a range of RMB 70.26–138.28; the coverage list and latest individual report dates are not fully disclosed.

Institution	Rating	Date	Note
Guotai Haitong Securities	Overweight	2026-09-07	Target price RMB 138.28
China International Capital Corporation (CICC)	Outperform Industry	2026-09-02	Target price RMB 105.51

5. Catalysts and Recent Events

5.1 Key Future Milestones

Time	Event	Key Focus
October 8, 2026	Extraordinary shareholders' meeting to review private placement and other proposals	Focus on voting results; the private placement proposal requires approval by more than two-thirds of voting rights held by attending shareholders.
After shareholders' meeting, timing undetermined	Subsequent approval and registration of private placement	Focus on state-owned asset approval, Shenzhen Stock Exchange review, and CSRC registration progress, as well as final issuance size, price, and targets.

5.2 Recent Important Events

2026-08-29 Interim report confirms substantial profit growth (positive): H1 net profit attributable to parent was RMB 2.952 billion, +269.59% YoY; non-GAAP net profit +260.08% YoY; net operating cash flow was -RMB 7.493 billion; subsequent collection and profit realization need monitoring.
2026-09-12 Proposed private placement to raise no more than RMB 9 billion (neutral): The private placement plan proposes to raise no more than RMB 9 billion, invested in AI infrastructure, liquid cooling computing power, and equipment upgrades; the plan still awaits approval, the issuance price and targets are undetermined, and equity dilution is possible.
2026-07-25 Completed issuance of RMB 1 billion science and technology innovation bond (neutral): The company disclosed that on July 24 it issued a RMB 1 billion, 5-year science and technology innovation bond with a coupon rate of 1.85%; this is completed debt financing and does not mean that private placement funds or investment projects have been implemented.

6. Bull-Bear Divergence and Risks

6.1 Bull Case

2026H1 non-GAAP net profit grew 260.08% YoY, and overall gross margin rose to 8.74%; profit recovery is already reflected in the financial statements.
2025 server revenue grew 47.69% YoY, accounting for 93.82%; AI servers and liquid cooling products are disclosed deployment directions.
PE-TTM is approximately 22.92x, at approximately the 3rd percentile of its own history; 2026E consensus net profit is RMB 4.841 billion, and if realized, the current valuation is not high.

6.2 Bear Case

2026H1 revenue grew only 5.22% YoY, significantly diverging from net profit growth; high profit growth has not yet corresponded to revenue acceleration.
2026H1 net operating cash flow was -RMB 7.493 billion, and operating cash flow/net profit attributable to parent was -2.54x, indicating clearly weak cash conversion of earnings.
2025 overall gross margin was approximately 4.77%, and server gross margin was 4.52%; the low-margin core business is relatively sensitive to cost increases and customer price pressure.

6.3 Other Risks

Top five customers accounted for 71.29% of sales and the largest customer 39.37% → changes in core customer orders or bargaining power could amplify revenue and gross margin volatility.
Top five suppliers accounted for 74.01% of procurement and the largest 33.14% → supply constraints or price increases for key components could compress server gross margin.
Proposed private placement to raise no more than RMB 9 billion with issuance price undetermined → if implemented, equity dilution could dilute EPS; if project returns fall short of expectations, valuation would be under pressure.

7. Tracking Checklist

Tracking Metric	Current	Bull Verification	Bear Verification
Overall Gross Margin	2026H1 at 8.74%	Maintain above 8% or continue improving in subsequent reporting periods	Fall below 6.75%, below the 2024 annual report basis
Revenue Growth	2026H1 +5.22% YoY	Subsequent revenue growth significantly higher than H1 and continuing to accelerate	Growth remains below 10% for consecutive reporting periods
Operating Cash Flow	2026H1 net -RMB 7.493 billion, cash flow/net profit attributable to parent -2.54x	Subsequent operating cash flow turns positive, cash conversion improves	Subsequent operating cash flow continues negative and receivables, inventory rise
Private Placement Approval and Issuance	Proposed raise no more than RMB 9 billion, reviewed October 8	Proposal passes and issuance terms and project progress are disclosed	Approval delayed, or issuance size and price cause significant dilution

8. Stock Price and Short-Term Outlook (Next Week, Scenario Analysis, for Reference Only)

⚠️ Risk Warning: The following is a subjective scenario analysis based on September 23 closing data; weights are heuristic judgments rather than statistical probabilities and do not constitute investment advice.

8.1 Technical Overview

After a pullback on September 4, the stock recently consolidated around RMB 71–72 and has not yet reclaimed MA20; recent volume has contracted from previous high-volatility days, and short-term support validity and volume confirmation at resistance still need to be observed.

Metric	Value	Interpretation
Moving Averages MA5/MA10/MA20	71.39/70.67/75.07	Stock price is slightly above MA10 but still suppressed by MA20.
MACD (DIF/DEA/Histogram)	-1.76/-1.56/-0.39	Below the zero axis; short-term momentum is weak.
RSI (6/12/24)	43.5/43.3/46.4	In a neutral zone; no extreme oversold condition.
Bollinger Bands (Upper/Middle/Lower)	86.94/75.07/63.20	The channel is relatively wide; the upper band should not be directly treated as a short-term resistance target.

8.2 Key Price Levels

Level	Range	Explanation
Short-Term Resistance	RMB 74.7–75.8	Reference nearby September 8 high and MA20/Bollinger middle band; after volume-supported stabilization, watch RMB 77–80.
First Support	RMB 69.5–70.7	Reference recent lows and MA10; if breached and rebound fails to reclaim, short-term decline may continue.
Strong Support	RMB 67.6–68.8	Reference September 14 low and local lows; after an effective break below, watch Bollinger lower band around RMB 63.2.

8.3 One-Week Range Estimated by Historical Volatility

Using the 2026-09-23 price of RMB 71.27 as the baseline and based on the daily volatility of the past 60 trading days (approximately 4.5%), the estimated closing price range over the next 5 trading days is:

Coverage Probability	Price Range	Relative to Baseline
Approximately 68%	RMB 64.49–78.76	-9.5%–+10.5%
Approximately 95%	RMB 58.59–86.7	-17.8%–+21.7%

This range only reflects the stock's recent normal volatility and does not include directional judgment; in the event of earnings reports, major announcements, or sharp market declines, actual movements often exceed the range.

8.4 Next-Week Scenarios (Subjective Weights, Not Statistical Probabilities)

Consolidation (relatively high weight, approximately 50%): Holds RMB 69.5–70.7 and volume does not continue to expand, or fluctuates repeatedly between RMB 68.5–75.5.
Weaker downside (medium weight, approximately 30%): Effectively breaks below RMB 69.5 and the computing power/computer sector weakens, first watching RMB 67.6–68.8; if strong support is also breached, watch around RMB 63.2.
Rebound strength (relatively low weight, approximately 20%): Only if volume-supported and stands above RMB 74.7–75.8 with sector cooperation, then watch recovery toward RMB 77–80; an upward move without volume is not confirmed.

8.5 Capital and Liquidity

On September 23, turnover rate was 2.60% and turnover was RMB 2.726 billion; over the past 5 trading days, turnover was approximately RMB 2.726 billion–4.864 billion. The 2026 June 30 interim report showed the top ten tradable shareholders collectively held approximately 38.44% of tradable shares, including the controlling shareholder and public funds, insurance, and other institutions; this quarter-end structure may have changed. Trading scale is not small-cap low liquidity, but slippage may still occur during sharp volume drops or gaps.

If single-day turnover reaches or exceeds RMB 5 billion and the close stands above around RMB 75, this can be regarded as a volume confirmation signal of increased trading activity.

The above scenario analysis is based on September 23, 2026 closing data and historical prices and technical indicators. Short-term stock prices will also be affected by multiple factors including news flow, capital flows, and the broader market environment. Technical indicators themselves have lag and limitations, do not guarantee actual future movements, and do not constitute buy or sell recommendations. Please make independent judgments based on the latest market information and bear investment risks yourself.

Data Sources

This report was automatically retrieved, compiled, and generated by AI based on public channel information. Information is as of market data as of September 23, 2026 close; September 24 close unverified, and there may be timeliness differences. Specific data should be subject to the company's official announcements and authoritative data terminals. This report is only for information compilation and research reference, does not constitute any investment advice, and investors should make independent judgments and bear investment risks themselves.

Reports are generated by AI from public online information and may contain errors or outdated information. They are for research only, not investment advice. Verify material facts against company filings and authoritative sources.