Inspur Digital Enterprise Technology's (HKG:596) underlying earnings growth outpaced the decent return generated for shareholders over the past three years

Simply Wall St.2023-11-29

Inspur Digital Enterprise Technology Limited (HKG:596) shareholders might be concerned after seeing the share price drop 11% in the last week. But over three years, the returns would have left most...

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But over three years, the returns would have left most...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/software/hkg-596/inspur-digital-enterprise-technology-shares/news/inspur-digital-enterprise-technologys-hkg596-underlying-earn\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Inspur Digital Enterprise Technology's (HKG:596) underlying earnings growth outpaced the decent return generated for shareholders over the past three years</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nInspur Digital Enterprise Technology's (HKG:596) underlying earnings growth outpaced the decent return generated for shareholders over the past three years\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-11-29 06:24 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/hk/software/hkg-596/inspur-digital-enterprise-technology-shares/news/inspur-digital-enterprise-technologys-hkg596-underlying-earn><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Inspur Digital Enterprise Technology Limited (HKG:596) shareholders might be concerned after seeing the share price drop 11% in the last week.    But over three years, the returns would have left most...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/software/hkg-596/inspur-digital-enterprise-technology-shares/news/inspur-digital-enterprise-technologys-hkg596-underlying-earn\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"00596","symbol_name":"浪潮数字企业","start_time":0,"source_url":"https://simplywall.st/stocks/hk/software/hkg-596/inspur-digital-enterprise-technology-shares/news/inspur-digital-enterprise-technologys-hkg596-underlying-earn","article_id":"2387127386","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/8041000-choice2-main-header/1585186556238"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2387127386","pubTimestamp":1701210261,"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Inspur Digital Enterprise Technology Limited ( HKG:596 ) shareholders might be concerned after seeing the share price...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"00596":"浪潮数字企业"},"translate_title":"浪潮数字企业科技（HKG：596）的基本盈利增长超过了过去三年为股东创造的可观回报","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"00596":1},"content_text":"Inspur Digital Enterprise Technology Limited (HKG:596) shareholders might be concerned after seeing the share price drop 11% in the last week.    But over three years, the returns would have left most investors smiling  In the last three years the share price is up, 32%: better than the market.      While this past week has detracted from the company's three-year return, let's look at the recent trends of the underlying business and see if the gains have been in alignment.   View our latest analysis for Inspur Digital Enterprise Technology   While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational.  One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).   Inspur Digital Enterprise Technology was able to grow its EPS at 56% per year over three years, sending the share price higher.   This EPS growth is higher than the 10% average annual increase in the share price.  So one could reasonably conclude that the market has cooled on the stock.   The image below shows how EPS has tracked over time (if you click on the image you can see greater detail). SEHK:596 Earnings Per Share Growth November 28th 2023 It is of course excellent to see how Inspur Digital Enterprise Technology has grown profits over the years, but the future is more important for shareholders.  It might be well worthwhile taking a look at our free report on how its financial position has changed over time.  A Different Perspective Inspur Digital Enterprise Technology shareholders are down 23% for the year (even including dividends), but the market itself is up 4.6%.  However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period.     Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 5% over the last half decade.  Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround.        While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important.   For instance, we've identified   2 warning signs for Inspur Digital Enterprise Technology (1 makes us a bit uncomfortable)  that you should be aware of.    But note: Inspur Digital Enterprise Technology may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Hong Kong exchanges.Valuation is complex, but we're helping make it simple.Find out whether Inspur Digital Enterprise Technology is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2387127386"}