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1. Company Snapshot

1.a. Company Description

CLPS Incorporation provides information technology, consulting, and solutions to institutions operating in banking, insurance, and financial sectors in the People's Republic of China and internationally.It offers IT consulting services in credit card business areas, such as credit card application, account setup, authorization and activation, settlement, collection, promotion, point system, anti-fraud, statement, reporting, and risk management.The company also provides banking services, including business analysis, system design, development, testing, system maintenance, and operation support; and services in loans, deposit, general ledger, wealth management, debit card, anti-money-laundering, statement and reporting, and risk management, as well as architecture consulting services for banking systems, and online and mobile banking.


In addition, it offers solutions in the field of wealth management; e-commerce solutions in online platforms, cross-border e-commerce, logistics, and back-end technology, such as big data analysis and intelligent decision-making among others; and driving, automatic control, and other AI-driven technology solutions for the automotive industry.Further, the company provides IT consulting services to its clients in the banking, wealth management, e-commerce, and automotive industries, among others; and software project development, maintenance, and testing services.Additionally, it offers CLPS Virtual Banking platform, a training platform for IT talents; recruitment and headhunting, as well as fee-for-service training services; and sells product and third-party software.


The company was founded in 2005 and is headquartered in Kwun Tong, Hong Kong.

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1.b. Last Insights on CLPS

CLPS Incorporation's recent performance was driven by its successful execution of a dual-engine strategy of global expansion and industry diversification. The company's financial results for the first half of fiscal year 2025 showed significant progress, with a strong focus on disciplined organic growth. The establishment of the CLPS AI Innovation Committee and the launch of Nibot, a new generation of Robotic Process Automation (RPA) product, further demonstrate the company's commitment to innovation and automation services. The proposed initial public offering of JAJI Global Incorporation's ordinary shares is also a positive development, which will allow CLPS to hold a significant voting interest and economic interest in JAJI's subsidiaries.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Head to Head Contrast: CLPS Incorporation (NASDAQ:CLPS) vs. Stem (NYSE:STEM)

Nov -17

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CLPS Incorporation Partners with BEA to Conduct a PoC of "Nibot" in the HKMA's GenA.I. Sandbox

Nov -07

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Jack Henry & Associates (NASDAQ:JKHY) vs. CLPS Incorporation (NASDAQ:CLPS) Head to Head Review

Nov -06

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Head to Head Comparison: CLPS Incorporation (NASDAQ:CLPS) versus TaskUs (NASDAQ:TASK)

Nov -03

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CLPS Incorporation Reports Financial Results for the Second Half and Full Year of Fiscal 2025

Oct -17

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CLPS Incorporation to Announce Second Half and Full Year of Fiscal 2025 Financial Results

Oct -10

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CLPS Incorporation Leverages AI for Successful Legacy System Modernization at a Major Hong Kong Bank

Sep -11

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Firefly Awarded $177 Million NASA Contract for Mission to the Moon's South Pole

Jul -29

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.37%)

6. Segments

Information Technology Consulting

Expected Growth: 12.4%

Growing demand for digital transformation, increasing adoption of cloud computing, and need for IT infrastructure optimization drive the growth of CLPS Incorporation's Information Technology Consulting services.

Customized Information Technology Solution Service

Expected Growth: 12.3%

Growing demand for customized IT solutions, increasing adoption of digital transformation, and rising need for business efficiency and productivity drive the growth of CLPS Incorporation's customized IT solution service.

Other

Expected Growth: 10.2%

CLPS Incorporation's 'Other' segment is expected to grow driven by increasing demand for licensing and royalties, coupled with strategic sales of excess inventory and miscellaneous items, leading to a forecasted CAGR of 10.2%.

7. Detailed Products

Cloud Services

CLPS Incorporation's Cloud Services provide scalable and on-demand access to a shared pool of computing resources, including servers, storage, databases, software, and applications.

Cybersecurity Solutions

CLPS Incorporation's Cybersecurity Solutions offer a range of services, including threat detection, incident response, and penetration testing, to protect clients' digital assets from cyber threats.

Data Analytics

CLPS Incorporation's Data Analytics services help clients extract insights from their data, using machine learning, artificial intelligence, and data visualization techniques.

Digital Transformation

CLPS Incorporation's Digital Transformation services help clients modernize their business processes, leveraging technologies like cloud, AI, and blockchain to drive innovation and growth.

IT Consulting

CLPS Incorporation's IT Consulting services provide strategic guidance and technical expertise to help clients optimize their IT infrastructure and systems.

Software Development

CLPS Incorporation's Software Development services design, develop, and deploy custom software applications, using agile methodologies and cutting-edge technologies.

8. CLPS Incorporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for CLPS Incorporation is moderate due to the presence of alternative services and products in the market.

Bargaining Power Of Customers

The bargaining power of customers is high due to the availability of multiple options and the ability of customers to switch to alternative services.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the company's strong relationships with suppliers and the availability of alternative suppliers.

Threat Of New Entrants

The threat of new entrants is moderate due to the presence of barriers to entry and the company's established market position.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of multiple competitors and the competitive nature of the industry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 14.97%
Debt Cost 3.95%
Equity Weight 85.03%
Equity Cost 9.28%
WACC 8.48%
Leverage 17.61%

11. Quality Control: CLPS Incorporation passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Bouvet

A-Score: 6.8/10

Value: 4.4

Growth: 8.2

Quality: 6.7

Yield: 9.4

Momentum: 3.0

Volatility: 9.0

1-Year Total Return ->

Stock-Card
CLPS

A-Score: 6.5/10

Value: 9.3

Growth: 5.7

Quality: 4.6

Yield: 10.0

Momentum: 4.0

Volatility: 5.7

1-Year Total Return ->

Stock-Card
Neurones

A-Score: 6.0/10

Value: 5.1

Growth: 6.6

Quality: 7.1

Yield: 6.9

Momentum: 2.5

Volatility: 8.0

1-Year Total Return ->

Stock-Card
Nedap

A-Score: 6.0/10

Value: 2.0

Growth: 3.4

Quality: 7.0

Yield: 6.2

Momentum: 10.0

Volatility: 7.3

1-Year Total Return ->

Stock-Card
Proact IT Group

A-Score: 4.9/10

Value: 7.0

Growth: 7.0

Quality: 5.3

Yield: 5.0

Momentum: 0.5

Volatility: 4.3

1-Year Total Return ->

Stock-Card
Softchoice

A-Score: 4.7/10

Value: 3.2

Growth: 5.3

Quality: 5.2

Yield: 5.0

Momentum: 4.0

Volatility: 5.3

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.89$

Current Price

0.89$

Potential

-0.00%

Expected Cash-Flows