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Inspur International

SEHK:596
Snowflake Description

Flawless balance sheet with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
596
SEHK
HK$4B
Market Cap
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Last updated 2019/06/16 12:33
Company description

Inspur International Limited, an investment holding company, provides software development, cloud, and Internet of Things (IoT) services in the People’s Republic of China. The last earnings update was 48 days ago. More info.

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  • Inspur International has significant price volatility in the past 3 months.
596 Share Price and Events
7 Day Returns
1.2%
SEHK:596
-1.5%
HK Software
0.5%
HK Market
1 Year Returns
10.2%
SEHK:596
-21.2%
HK Software
-15.9%
HK Market
596 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Inspur International (596) 1.2% -12.2% -32.6% 10.2% 148.1% 94.6%
HK Software -1.5% -3.8% -14.8% -21.2% 27.2% -3.6%
HK Market 0.5% -4% -8.6% -15.9% 20.6% 3%
1 Year Return vs Industry and Market
  • 596 outperformed the Software industry which returned -21.2% over the past year.
  • 596 outperformed the Market in Hong Kong which returned -15.9% over the past year.
Price Volatility
596
Industry
5yr Volatility vs Market

Value

 Is Inspur International undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Inspur International to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Inspur International.

SEHK:596 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.3%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:596
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6.7%
Software Unlevered Beta Simply Wall St/ S&P Global 1.14
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.136 (1 + (1- 25%) (0%)) 		1.091
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)		 1.09
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.091 * 6.65%) 		9.26%

Discounted Cash Flow Calculation for SEHK:596 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Inspur International is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:596 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (HKD, Millions) Source Present Value
Discounted (@ 9.26%)
2019 327.85 Analyst x2 300.07
2020 409.65 Analyst x2 343.16
2021 593.00 Analyst x1 454.65
2022 728.22 Est @ 22.8% 511.00
2023 848.83 Est @ 16.56% 545.16
2024 952.34 Est @ 12.19% 559.80
2025 1,039.35 Est @ 9.14% 559.17
2026 1,112.07 Est @ 7% 547.59
2027 1,173.22 Est @ 5.5% 528.74
2028 1,225.43 Est @ 4.45% 505.47
Present value of next 10 years cash flows HK$4,854.80
SEHK:596 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= HK$1,225.43 × (1 + 2%) ÷ (9.26% – 2%) 		HK$17,225.41
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= HK$17,225.41 ÷ (1 + 9.26%)10 		HK$7,105.16
SEHK:596 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= HK$4,854.80 + HK$7,105.16 		HK$11,959.97
Equity Value per Share
(HKD)		 = Total value / Shares Outstanding
= HK$11,959.97 / 1,138.92 		HK$10.5
SEHK:596 Discount to Share Price
Calculation Result
Value per share (HKD) From above. HK$10.50
Current discount Discount to share price of HK$3.25
= -1 x (HK$3.25 - HK$10.50) / HK$10.50 		69.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Inspur International is available for.
Intrinsic value
>50%
Share price is HK$3.25 vs Future cash flow value of HK$10.5
Current Discount Checks
For Inspur International to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Inspur International's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Inspur International's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Inspur International's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Inspur International's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:596 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in HKD HK$0.29
SEHK:596 Share Price ** SEHK (2019-06-14) in HKD HK$3.25
Hong Kong Software Industry PE Ratio Median Figure of 15 Publicly-Listed Software Companies 12.59x
Hong Kong Market PE Ratio Median Figure of 1,487 Publicly-Listed Companies 10.68x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Inspur International.

SEHK:596 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:596 Share Price ÷ EPS (both in HKD)

= 3.25 ÷ 0.29

 11.17x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Inspur International is good value based on earnings compared to the HK Software industry average.
  • Inspur International is overvalued based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Inspur International's expected growth come at a high price?
Raw Data
SEHK:596 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.17x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts		 15.3%per year
Hong Kong Software Industry PEG Ratio Median Figure of 5 Publicly-Listed Software Companies 0.73x
Hong Kong Market PEG Ratio Median Figure of 466 Publicly-Listed Companies 0.76x

*Line of best fit is calculated by linear regression .

SEHK:596 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.17x ÷ 15.3%

 0.73x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Inspur International is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Inspur International's assets?
Raw Data
SEHK:596 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in HKD HK$1.80
SEHK:596 Share Price * SEHK (2019-06-14) in HKD HK$3.25
Hong Kong Software Industry PB Ratio Median Figure of 29 Publicly-Listed Software Companies 1.19x
Hong Kong Market PB Ratio Median Figure of 2,169 Publicly-Listed Companies 0.93x
SEHK:596 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:596 Share Price ÷ Book Value per Share (both in HKD)

= 3.25 ÷ 1.80

 1.8x

* Primary Listing of Inspur International.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Inspur International is overvalued based on assets compared to the HK Software industry average.
Show me more potentially undervalued companies in the Software industry
X
Value checks
We assess Inspur International's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
    5. Inspur International has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Inspur International expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
15.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Inspur International expected to grow at an attractive rate?
  • Inspur International's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • Inspur International's earnings growth is expected to exceed the Hong Kong market average.
  • Inspur International's revenue growth is expected to exceed the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:596 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:596 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 15.3%
SEHK:596 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 17%
Hong Kong Software Industry Earnings Growth Rate Market Cap Weighted Average 23.6%
Hong Kong Software Industry Revenue Growth Rate Market Cap Weighted Average 20.7%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.2%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:596 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:596 Future Estimates Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 4,078 592 490 2
2020-12-31 3,626 437 407 3
2019-12-31 2,995 379 339 3
SEHK:596 Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2018-12-31 2,443 260 324
2018-09-30 2,315 182 298
2018-06-30 1,539 33 246
2018-03-31 1,429 19 180
2017-12-31 1,965 77 139
2017-09-30 1,255 54 83
2017-06-30 1,192 104 52
2017-03-31 1,178 119 56
2016-12-31 1,163 133 60
2016-09-30 1,112 28
2016-06-30 1,061 108 -4
2016-03-31 1,016 88 -10

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Inspur International's earnings are expected to grow by 15.3% yearly, however this is not considered high growth (20% yearly).
  • Inspur International's revenue is expected to grow by 17% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:596 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Inspur International Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:596 Future Estimates Data
Date (Data in HKD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.43 0.43 0.43 2.00
2020-12-31 0.36 0.38 0.35 3.00
2019-12-31 0.30 0.32 0.29 3.00
SEHK:596 Past Financials Data
Date (Data in HKD Millions) EPS *
2018-12-31 0.29
2018-09-30 0.27
2018-06-30 0.26
2018-03-31 0.19
2017-12-31 0.13
2017-09-30 0.09
2017-06-30 0.06
2017-03-31 0.06
2016-12-31 0.07
2016-09-30 0.03
2016-06-30 0.00
2016-03-31 -0.01

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Inspur International is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
Show me more growth companies in the Software industry
X
Future performance checks
We assess Inspur International's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Inspur International has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Inspur International performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Inspur International's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Inspur International has delivered over 20% year on year earnings growth in the past 5 years.
  • Inspur International's 1-year earnings growth exceeds its 5-year average (132.8% vs 81.8%)
  • Inspur International's earnings growth has exceeded the HK Software industry average in the past year (132.8% vs 0.1%).
Earnings and Revenue History
Inspur International's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Inspur International Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:596 Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 2,442.62 324.03 916.67
2018-09-30 2,314.54 298.07 853.45
2018-06-30 1,539.26 245.96 551.40
2018-03-31 1,428.61 179.50 525.47
2017-12-31 1,965.15 139.20 738.38
2017-09-30 1,255.04 82.74 487.94
2017-06-30 1,192.14 52.44 476.32
2017-03-31 1,177.65 56.17 468.17
2016-12-31 1,163.17 59.89 460.01
2016-09-30 1,112.18 27.76 471.17
2016-06-30 1,061.19 -4.38 482.34
2016-03-31 1,016.42 -10.14 461.31
2015-12-31 971.66 -15.90 440.29
2015-09-30 898.02 0.64 288.02
2015-06-30 897.90 -34.94 280.70
2015-03-31 894.49 -52.51 347.74
2014-12-31 891.08 -70.07 414.77
2014-09-30 1,055.02 -110.63 544.25
2014-06-30 1,218.96 -151.18 668.15
2014-03-31 1,259.97 -150.83 664.67
2013-12-31 1,300.98 -150.49 661.20
2013-09-30 1,229.53 -162.84 628.00
2013-06-30 1,158.08 -175.20 600.38
2013-03-31 1,159.82 -163.68 588.53
2012-12-31 1,161.56 -152.16 576.68
2012-09-30 1,432.18 -85.79 578.22
2012-06-30 1,702.80 -19.41 579.76

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Inspur International has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Inspur International used its assets more efficiently than the HK Software industry average last year based on Return on Assets.
  • Inspur International has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
Show me more strong past performing companies in the Software industry
X
Past performance checks
We assess Inspur International's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Inspur International has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Inspur International's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Inspur International's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Inspur International is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Inspur International's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Inspur International's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Inspur International has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Inspur International Company Filings, last reported 5 months ago.

SEHK:596 Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 2,053.10 0.00 897.34
2018-09-30 2,053.10 0.00 897.34
2018-06-30 2,152.13 0.00 1,239.27
2018-03-31 2,152.13 0.00 1,239.27
2017-12-31 1,803.03 24.02 1,391.06
2017-09-30 2,081.29 0.00 1,350.78
2017-06-30 1,747.55 0.00 1,026.15
2017-03-31 1,747.55 0.00 1,026.15
2016-12-31 1,734.59 0.00 852.98
2016-09-30 1,734.59 0.00 852.98
2016-06-30 1,722.54 0.00 561.78
2016-03-31 1,722.54 0.00 561.78
2015-12-31 1,790.75 0.00 1,095.22
2015-09-30 1,739.93 0.00 1,095.22
2015-06-30 1,815.58 0.00 698.75
2015-03-31 1,815.58 0.00 698.75
2014-12-31 1,834.56 0.00 1,015.99
2014-09-30 1,834.56 0.00 1,015.99
2014-06-30 1,849.68 0.00 895.08
2014-03-31 1,849.68 0.00 895.08
2013-12-31 1,942.25 0.00 897.47
2013-09-30 1,942.25 0.00 897.47
2013-06-30 1,926.59 64.97 1,070.69
2013-03-31 1,926.59 64.97 1,070.69
2012-12-31 1,705.28 64.96 1,184.76
2012-09-30 1,705.28 64.96 1,184.76
2012-06-30 1,809.91 63.52 1,187.33
  • Inspur International has no debt.
  • Inspur International had no debt 5 years ago.
  • Inspur International has no debt, it does not need to be covered by operating cash flow.
  • Inspur International has no debt, therefore coverage of interest payments is not a concern.
Show me more healthy companies in the Software industry
X
Financial health checks
We assess Inspur International's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
    7. Inspur International has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Inspur International's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.23%
Current annual income from Inspur International dividends. Estimated to be 1.34% next year.
If you bought HK$2,000 of Inspur International shares you are expected to receive HK$25 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Inspur International's pays a lower dividend yield than the bottom 25% of dividend payers in Hong Kong (2.08%).
  • Inspur International's dividend is below the markets top 25% of dividend payers in Hong Kong (5.95%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:596 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
Hong Kong Software Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 0.6%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 966 Stocks 3.7%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:596 Future Dividends Estimate Data
Date (Data in HK$) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.03 1.00
2020-12-31 0.05 2.00
2019-12-31 0.04 2.00
SEHK:596 Past Annualized Dividends Data
Date (Data in HK$) Dividend per share (annual) Avg. Yield (%)
2019-06-06 0.040 1.230
2018-03-26 0.030 0.905
2017-06-09 0.030 1.445
2016-04-21 0.030 1.915
2016-03-30 0.030 2.302
2015-05-29 0.030 1.979
2014-04-29 0.030 1.707
2013-04-18 0.030 1.894
2013-03-22 0.030 2.069
2012-03-27 0.060 4.953
2011-03-25 0.050 3.565
2010-04-23 0.050 1.503
2010-04-08 0.050 1.102

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Inspur International has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Inspur International has only been paying a dividend for 9 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of Inspur International's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (7.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (14.3x coverage).
X
Income/ dividend checks
We assess Inspur International's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Inspur International afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
    7. Inspur International has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Inspur International's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Kong Eric
COMPENSATION HK$7,796,000
AGE 49
TENURE AS CEO 0.8 years
CEO Bio

Mr. Eric Kong Lee has been President, Chief Operating Officer and Executive Director of Inspur International Limited since August 1, 2017 and its Chief Executive Officer since August 17, 2018. Mr. Lee serves as Head of Outsourcing Business at Inspur Electronic Information Industry Co., Ltd. (alternate name, Inspur Group). Mr. Lee has over 15 years of experience in business management. For about 9 years, Mr. Lee has held technical, marketing and business development and business management positions in AT&T Network Systems International and Lucent Technologies in Europe, Russia, the People's Republic of China (PRC), Australia, Philippines and Malaysia. Mr. Lee later joined Oracle Corporation as client director for the Asia Pacific Enterprise Accounts Division, after which he joined the Group in October 2003 as co-founder and Chief Operating Officer, promoted to President and Chief Executive Officer the following year, of the Group's outsourcing start-up, successfully built the business from practically zero to one of the PRC's top five outsourcing firm servicing domestic and international markets. He resigned in October 2013 and have since then became a private investor for various projects. Mr. Lee attend a full-time MBA program of INSEAD in France in 1997. He first obtained a Master of Electrical Engineering from the University of Technology in Eindhoven, the Netherlands, in 1993.

CEO Compensation
  • Kong's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Kong's remuneration is higher than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the Inspur International management team in years:

4.3
Average Tenure
47
Average Age
  • The tenure for the Inspur International management team is about average.
Management Team

Xingshan Wang

TITLE
Chairman
COMPENSATION
HK$6M
AGE
54
TENURE
0.8 yrs

Kong Eric

TITLE
CEO, President
COMPENSATION
HK$8M
AGE
49
TENURE
0.8 yrs

Joe Jin

TITLE
Executive Director
COMPENSATION
HK$2M
AGE
56

Yuxin Zhang

TITLE
Chief Financial Officer
AGE
42
TENURE
0.8 yrs

Hailong Dong

TITLE
Compliance Officer & Non-Executive Director
COMPENSATION
HK$118K
AGE
40
TENURE
10.3 yrs

Bo Zou

TITLE
Joint Secretary
AGE
39
TENURE
7.8 yrs

Wing Chan

TITLE
Joint Secretary
AGE
47
TENURE
7.8 yrs
Board of Directors Tenure

Average tenure and age of the Inspur International board of directors in years:

5.2
Average Tenure
56
Average Age
  • The tenure for the Inspur International board of directors is about average.
Board of Directors

Xingshan Wang

TITLE
Chairman
COMPENSATION
HK$6M
AGE
54
TENURE
7.2 yrs

Kong Eric

TITLE
CEO, President
COMPENSATION
HK$8M
AGE
49
TENURE
1.8 yrs

Joe Jin

TITLE
Executive Director
COMPENSATION
HK$2M
AGE
56
TENURE
3.8 yrs

Hailong Dong

TITLE
Compliance Officer & Non-Executive Director
COMPENSATION
HK$118K
AGE
40
TENURE
5.9 yrs

Alexis Wong

TITLE
Independent Non Executive Director
COMPENSATION
HK$247K
AGE
60
TENURE
16.3 yrs

Ruijun Zhang

TITLE
Independent Non-Executive Director
COMPENSATION
HK$187K
AGE
56
TENURE
5.2 yrs

Xiangqian Ding

TITLE
Independent Non-Executive Director
COMPENSATION
HK$187K
AGE
56
TENURE
3.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
X
Management checks
We assess Inspur International's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
    5. Inspur International has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Why Inspur International Limited's (HKG:596) High P/E Ratio Isn't Necessarily A Bad Thing

We'll look at Inspur International Limited's (HKG:596) P/E ratio and reflect on what it tells us about the company's share price. … Inspur International has a P/E ratio of 14.44, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St - –

Can Inspur International Limited's (HKG:596) ROE Continue To Surpass The Industry Average?

Inspur International has a ROE of 11%, based on the last twelve months. … That means that for every HK$1 worth of shareholders' equity, it generated HK$0.11 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St - –

Can Inspur International Limited (HKG:596) Compete With Tech Giant Peers?

In the past decade, the mega-tech companies, such as Amazon and Microsoft, have built highly successful and ubiquitous platforms and ecosystem in which smaller companies gravitate towards … Other hardware and software tech service firms, including many that dominated before 2000, are struggling to compete, and are going through significant restructuring in order to move away from their legacy systems … Tech analysts are forecasting for the entire software tech industry,

Simply Wall St - –

Company Info

Description

Inspur International Limited, an investment holding company, provides software development, cloud, and Internet of Things (IoT) services in the People’s Republic of China. The company operates through Management Software and Cloud Services, and IoT Solutions segments. It is also involved in the trading of computer products, as well as sale of information technology peripherals and software; and property investment activities. The company was incorporated in 2003 and is based in Kowloon Bay, Hong Kong. Inspur International Limited is considered a Red Chip company due to its listing on the Hong Kong Stock Exchange. Inspur International Limited is a subsidiary of Inspur Overseas Investment Limited.

Details
Name: Inspur International Limited
596
Exchange: SEHK
Founded: 2003
HK$3,701,492,375
1,138,920,731
Website: http://www.inspur.com.hk
Address: Inspur International Limited
Tower A, Billion Center,
Room B&C,
Kowloon Bay,
Kowloon, Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 596 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 29. Apr 2004
OTCPK INPR.F Ordinary Shares Pink Sheets LLC US USD 29. Apr 2004
DB L1CC Ordinary Shares Deutsche Boerse AG DE EUR 29. Apr 2004
Number of employees
Current staff
Staff numbers
4,840
Inspur International employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/16 12:33
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/06/03
Last earnings filing: 2019/04/29
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

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