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IEIT SYSTEMS Co., Ltd.Class A

000977.SZ
46
Computer Hardware · Technology
Price
¥70.54
+0.11 (+0.16%)
Market Cap
¥103.59B
Exchange
Shenzhen Stock Exchange
Winston Score
46
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Sep 13, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality
Weak
Growth
Good
Cash Flow
Mixed
Stability
Good
Valuation
Good
Dividends
Weak
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Share count rising — dilution

+1.0% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 1.45B (2021) → 1.47B (2025)

§Winston Score History

The full picture

IEIT Systems, formerly known as Inspur Electronic Information Industry, is a major Chinese company that makes computer servers and data storage equipment. Its servers power cloud computing centers, government systems, and large businesses across China and beyond. It is one of the top server manufacturers in the world by shipments.

The company earns revenue primarily by selling server hardware and related IT infrastructure to enterprises, cloud providers, and government agencies. It operates mainly in China but also has a growing international presence. IEIT Systems benefits from strong ties to China's government and major tech firms, giving it a steady base of large customers. Key growth drivers include rising demand for AI computing infrastructure and cloud expansion, though thin margins and intense competition from both domestic and global rivals remain notable risks.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+46.7% YoY

YoY Growth Rate

Strong revenue growth

EPS Growth

+595.7% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

¥3.8B/ year

↑ Rising (+7% vs prior year)

2.3% of revenue

Below sector average (15%)

R&D investment increasing — building for the future

Insider Activity

33.4%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

¥13.5B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Strong grower

IEIT SYSTEMS Co., Ltd.Class A is growing revenue at 47% year-over-year. The Winston Score penalises unprofitable companies, but revenue at this pace tells a different story — this is a company still in "build mode."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
10.3%
Thin — 10.3% gross margin
Profit after running costs
Operating Margin
4.6%
Thin — 4.6% operating margin
Return on the money invested
ROCE
8.3%
Below par — 8.3% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
+10.5%
Steady sales growth (+10.5% YoY)
Profit growth
EPS YoY
+83.4%
Earnings growing fast (+83.4% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is
EPS Consistency
5/8 quarters
Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash
Cash Conversion
77%
Modest — 77% of profit becomes cash
Spare cash per sale
FCF Margin
2.0%
Thin free cash flow (2.0%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
0.87
Moderate — manageable debt (0.87)
Covers its interest
Interest Cover
6.27x
Adequate interest coverage (6.3x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
22.8x
Growth-priced — P/E 22.8

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year
P/E vs Forward
+3.1
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (22.8 → 19.6)

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Dividends

Dividend
Dividend Yield
0.06%
Small dividend — 0.06% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record
Dividend Growth
-29.7%
Dividend cut (-29.7% YoY) — warning sign

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