INSPUR DIGI ENT (00596) surged over 5% during trading, and as of press time, the stock price was up 4.48% to HK$10.97, with a turnover of HK$44.5745 million.

INSPUR DIGI ENT previously released its interim results, showing revenue of RMB 4.343 billion, up 4.9% year-on-year; profit attributable to owners of the company reached RMB 183 million, surging 73.3% year-on-year. The significant profit increase during the reporting period was mainly due to: the cloud services business turning from loss to profit; and the management software business segment's operating profit growing 6.22% compared to the same period last year.

FIRST SHANGHAI issued a research report stating that INSPUR DIGI ENT's cloud services business showed remarkable growth momentum in the first half of the year, achieving revenue of RMB 1.27 billion, up 30% year-on-year. The proportion of cloud business in operating revenue has increased for four consecutive years, breaking through 50% for the first time in the interim period this year, reaching 52%, with growth rates consistently maintaining above 30%. Looking ahead to the next 3-5 years, this business is expected to maintain a growth trend of over 20%. Combined with the company's natural advantages from its state-owned background, the potential for cloud services to release profits through domestic IT innovation initiatives, and expectations for valuation enhancement from potential inclusion in Stock Connect in the future, the firm gave a target price of HK$14.8 and a "Buy" rating.