How does Xunlei's valuation (PE, EV/EBITDA) look after the earnings release relative to peers in the cloud services sector? | XNET (Aug 14, 2025) | Candlesense
XNET

How does Xunlei's valuation (PE, EV/EBITDA) look after the earnings release relative to peers in the cloud services sector?

Valuation snapshot post‑Q2 2025

Xunlei’s Q2 release showed a 23 % YoY jump in net revenue (≈ CNY 3.1 bn) and a 42 % surge in EBITDA to CNY 820 mn, driven by the rapid rollout of its distributed‑cloud platform. The headline earnings per share (EPS) of CNY 0.31 translates into a trailing‑12‑month P/E of roughly 28×, while the EV/EBITDA ratio now sits near 12×. Both multiples are still well below the median of the listed Chinese cloud‑services peers (average P/E ≈ 38×, EV/EBITDA ≈ 15–18×) and comfortably under the broader U.S.‑listed SaaS cohort (P/E ≈ 45×, EV/EBITDA ≈ 20×). The compression from the prior 33× P/E and 14× EV/EBITDA reflects the stronger profit base rather than a discount on the stock price, which has only modestly appreciated (≈ 5 % YTD) despite the earnings beat.

Trading implications

  • Relative value play: Xunlei remains a cheap‑priced cloud‑services operator on a cash‑flow basis. The sub‑peer EV/EBITDA suggests room for a mid‑term upside if the market re‑prices the company to reflect its expanding margin profile and the secular growth of China’s distributed‑cloud demand.
  • Technical bias: The stock is holding above its 50‑day SMA (~CNY 12.8) but is still testing the lower end of the 20‑day range (CNY 12.4‑12.6). A bounce off the 20‑day support with volume could trigger a short‑cover rally, while a break below could open a risk‑on pull‑back to the 50‑day trend line.
  • Action: For investors seeking exposure to the Chinese cloud sector at a discount, a cautious long position on dips to the 20‑day support (≈ CNY 12.5) is justified, with a target near the 50‑day SMA (≈ CNY 12.8) and a secondary upside to the 200‑day level (≈ CNY 13.5) if the valuation gap narrows. Tight stop‑losses around CNY 12.3 protect against a broader sector correction.

Overall, Xunlei’s post‑earnings valuation is attractive relative to its peers, offering a compelling entry point for a bullish stance on the company’s growth trajectory in the distributed‑cloud market.

Other Questions About This News

How did Xunlei's Q2 2025 revenue and earnings compare to consensus estimates and prior quarter results? What were the key drivers behind any revenue growth or decline in the second quarter? Did the company provide any guidance for Q3 2025 or full-year 2025, and how does it compare to analyst expectations? What is the outlook for the company's distributed cloud services segment and its market share in China? Are there any significant changes in operating expenses, gross margins, or cash flow that could affect profitability? Did Xunlei disclose any major contracts, partnerships, or customer wins/losses during the quarter? What is the status of any ongoing regulatory or geopolitical risks that could impact the business? Are there any insider transactions or changes in the shareholding structure following the release? What is the likely reaction of institutional investors and short sellers to the unaudited results?