# Inspur Electronic Info Industr (000977.SHE)

Canonical: https://gigainvestors.com/s/000977.SHE

Analysis as of: 2026-10-16T07:35:28.882Z. Financial observations: FY1997–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: CNY 57.06 per share; close as of 2026-10-15.

Estimated value: low CNY 39.26 per share, central CNY 53.27 per share, high CNY 61.43 per share. Buy at or below the central value CNY 53.27 per share. Valuation as of 2026-10-16T07:35:28.882Z; scenarios are not confidence intervals.

Expected annual return: 9.5% at the stated quote. About 9.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CN 10-year bond 1.7% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.23×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.02×

- FY2017: 0.02×

- FY2018: 0.02×

- FY2019: 0.02×

- FY2020: 0.03×

- FY2021: 0.03×

- FY2022: 0.03×

- FY2023: 0.03×

- FY2024: 0.02×

- FY2025: 0.02×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 5.4pp below the typical margin (limit 4pp)

- ROIC, median of available years: 12.9%

- ROIC, second-lowest year: 8.4%

- Typical minus recent gross margin: 5.4 pp

- Typical gross margin (annual median): 10.3%

- Recent gross margin (lower of latest and 3-year median): 4.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 0.8%

- ROIC including acquisitions, ten-year median: 12.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 4.8%

- FY2017: 8.4%

- FY2018: 28.5%

- FY2019: 19.7%

- FY2020: 39.4%

- FY2021: 14.9%

- FY2022: 11.8%

- FY2023: 11.2%

- FY2024: 11.5%

- FY2025: 14.0%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 1.01×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 11B

- Net income, five-year total: CNY 11B

- Return on incremental invested capital: 7.8%

- Working capital / revenue, annual change: 0.9 pp

- Working capital / revenue, change between three-year averages: 7.0 pp

- Working capital / revenue, final three-year average: 22.8%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.07×

- FY2022: 0.65×

- FY2023: 1.00×

- FY2024: 1.05×

- FY2025: 1.24×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 8.4% vs 11.5%

- Per-share earnings: 0.33 to 1.56 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 2.6%

- Ordinary dilution, 5-year annual growth: 0.4%

- Market cap gain: CNY 77B

- Cumulative retained earnings: CNY 12B

- Diluted shares, 10-year annual growth: 2.6%

- Diluted shares, 5-year annual growth: 0.4%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 21.3%

- Per-share value change: CNY 1.23

- Per-share value, starting three-year median: CNY 0.33

- Per-share value, ending three-year median: CNY 1.56

- Buyback history: 0 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 574M

- Cumulative net income, 10 years: CNY 14B

- ROIC, first three-year median: 8.4%

- ROIC, last three-year median: 11.5%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.24

- FY2017: CNY 0.33

- FY2018: CNY 0.47

- FY2019: CNY 0.67

- FY2020: CNY 1.02

- FY2021: CNY 1.37

- FY2022: CNY 1.39

- FY2023: CNY 1.18

- FY2024: CNY 1.56

- FY2025: CNY 1.64

### accounting: pass

- Sloan accruals: -3.6%

- Receivables to sales index (DSRI): 0.77×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.26×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.02×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 2.4%

- FY2017: 1.0%

- FY2018: -2.6%

- FY2019: 0.2%

- FY2020: -2.3%

- FY2021: 22.3%

- FY2022: 0.7%

- FY2023: 2.6%

- FY2024: 3.1%

- FY2025: -3.6%

## Holders

## Price story

Down 33% since Aug 2026 · sales +43.6%

Story as of 2026-10-16T10:00:05.055Z; price observation 2026-10-15.

Price needs cash profits to grow 7.5% a year for ten years

### Sales · FY2024–2025

sales +43.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 13B 

- FY2017: CNY 25B 

- FY2018: CNY 47B 

- FY2019: CNY 52B 

- FY2020: CNY 63B 

- FY2021: CNY 67B 

- FY2022: CNY 70B 

- FY2023: CNY 66B 

- FY2024: CNY 115B 

- FY2025: CNY 165B 

### Gross margin · FY2025

gross margin 4.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 13.0% 

- FY2017: 10.0% 

- FY2018: 10.1% 

- FY2019: 11.0% 

- FY2020: 11.0% 

- FY2021: 10.4% 

- FY2022: 10.6% 

- FY2023: 9.4% 

- FY2024: 6.4% 

- FY2025: 4.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in computer hardware; annual sales are CNY 164.8 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:28.882Z); FY2025: revenue 164781997658.23; grossProfit 8046993422.96; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 000977.SHE: Inspur Electronic Information Industry Co., Ltd., together with its subsidiaries, provides cloud computing and big data services in China and internationally. The company offers computing equipment, including storage, intelligent network, and cloud operating systems; software products, such as intelligent ERPs, enterprise and industry PaaS platforms, and databases; government and enterprise cloud services; and industrial internet products comprising industrial internet platform, safety, communication, equipment, application, supply chain, and equipment health management. It also provides comprehensive data management; mobile private and all-optical networks, 5G router, IoT gateways, and edge desktop cloud; intelligent terminals, which include display, zero-carbon, and service terminals, as well as intelligent robots; and software and information technology outsourcing and data center services. In addition, the company is involved in the development, production, and sale of computer hardware, software, and auxiliary equipment, as well as parts and electronic components; import and export; software technology development; and repair services. It serves manufacturing, metallurgy, chemical, telecommunications, food, building, water affairs, smart city, business, energy, healthcare, park, highway, urban rail, civil aviation, port and shipping, agriculture, water conservancy, education, culture and tourism, and supply chain industries. The company was formerly known as Langchao Electronic Information Industry Co., Ltd. and changed its name to Inspur Electronic Information Industry Co., Ltd. in April 2006. Inspur Electronic Information Industry Co., Ltd. was founded in 1998 and is headquartered in Jinan, China.

### Why customers stay

Margins ranged from 4.9% to 9.4% during 2023–25; it earns 12.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:28.882Z); FY2023: grossProfit / revenue = 9.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:28.882Z); FY2024: grossProfit / revenue = 6.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:28.882Z); FY2025: grossProfit / revenue = 4.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:28.882Z); 10-year return on capital observations [[2016,0.048120586509530286],[2017,0.08387709230889946],[2018,0.2853901183046182],[2019,0.19742350109066284],[2020,0.3937535767720499],[2021,0.1489228609731868],[2022,0.11778729312460234],[2023,0.11157833691732573],[2024,0.11546967866930631],[2025,0.14012051914897808]]; median 0.1289539061367902. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 11% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:28.882Z); Gross margin observations: [[2021,0.10447031240276078],[2022,0.10611152719990354],[2023,0.0935846220628822]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:28.882Z); FY2016: growth capex 86120209.86002356; upkeep 313439473.13997644; owner earnings 100078723.86002356. Growth capex / owner earnings = 0.8605246603711368.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:28.882Z); FY2017: growth capex 121895231; upkeep 171327134; owner earnings 427530780. Growth capex / owner earnings = 0.28511451502977164.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:28.882Z); FY2018: growth capex 0; upkeep 418568814; owner earnings 663858399. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:28.882Z); FY2019: growth capex 109785732.89999509; upkeep 325527109.1000049; owner earnings 874548345.8999951. Growth capex / owner earnings = 0.1255342067876361.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:28.882Z); FY2020: growth capex 160345261; upkeep 288911255; owner earnings 1466448650. Growth capex / owner earnings = 0.10934256784238575.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:28.882Z); FY2021: growth capex 0; upkeep 194864195; owner earnings 2136953300.394. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:28.882Z); FY2022: growth capex 51791637.99911499; upkeep 1071992562.000885; owner earnings 1350056465.831115. Growth capex / owner earnings = 0.03836257172194.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:28.882Z); FY2023: growth capex 0; upkeep 306976497.9; owner earnings 1787749730.484. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:28.882Z); FY2024: growth capex 0; upkeep 247807983; owner earnings 2405086277.404. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:28.882Z); FY2025: growth capex 0; upkeep 225095466.43; owner earnings 2992208297.9660006. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:28.882Z); Dividend observations: [[2016,116693784],[2017,176362436],[2018,361626200],[2019,335150462],[2020,296860956],[2021,159909344],[2022,761291691],[2023,219555407],[2024,596609473],[2025,647177022.12]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 32.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 000977.SHE SharesStats.PercentInsiders = 32.769999999999996 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 7.5% yearly over ten years; actual growth was 25.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:28.882Z); Ten-year compound average after fade. Initial solved rate 0.09418353351845432. Price 57.06; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.20466714013966533 → FY2025 2.0325325874984226. Closing-price date 2026-10-15.

## Monthly share-price history (CNY per share)

- 2016-10: CNY 19.75 per share

- 2016-11: CNY 19.58 per share

- 2016-12: CNY 17.90 per share

- 2017-01: CNY 16.74 per share

- 2017-02: CNY 17.89 per share

- 2017-03: CNY 16.05 per share

- 2017-04: CNY 16.16 per share

- 2017-05: CNY 15.01 per share

- 2017-06: CNY 14.63 per share

- 2017-07: CNY 15.49 per share

- 2017-08: CNY 16.09 per share

- 2017-09: CNY 17.74 per share

- 2017-10: CNY 16.39 per share

- 2017-11: CNY 17.35 per share

- 2017-12: CNY 18.38 per share

- 2018-01: CNY 15.61 per share

- 2018-02: CNY 17.31 per share

- 2018-03: CNY 22.77 per share

- 2018-04: CNY 21.40 per share

- 2018-05: CNY 20.38 per share

- 2018-06: CNY 22.05 per share

- 2018-07: CNY 23.24 per share

- 2018-08: CNY 24.16 per share

- 2018-09: CNY 22.26 per share

- 2018-10: CNY 16.75 per share

- 2018-11: CNY 16.23 per share

- 2018-12: CNY 14.72 per share

- 2019-01: CNY 15.67 per share

- 2019-02: CNY 19.90 per share

- 2019-03: CNY 23.11 per share

- 2019-04: CNY 23.57 per share

- 2019-05: CNY 22.25 per share

- 2019-06: CNY 22.06 per share

- 2019-07: CNY 19.77 per share

- 2019-08: CNY 23.57 per share

- 2019-09: CNY 23.76 per share

- 2019-10: CNY 24.40 per share

- 2019-11: CNY 27.68 per share

- 2019-12: CNY 27.83 per share

- 2020-01: CNY 31.55 per share

- 2020-02: CNY 38.88 per share

- 2020-03: CNY 38.77 per share

- 2020-04: CNY 41.50 per share

- 2020-05: CNY 38.53 per share

- 2020-06: CNY 39.17 per share

- 2020-07: CNY 37.96 per share

- 2020-08: CNY 36.10 per share

- 2020-09: CNY 30.38 per share

- 2020-10: CNY 30.50 per share

- 2020-11: CNY 28.00 per share

- 2020-12: CNY 26.88 per share

- 2021-01: CNY 25.95 per share

- 2021-02: CNY 31.38 per share

- 2021-03: CNY 27.38 per share

- 2021-04: CNY 27.01 per share

- 2021-05: CNY 29.24 per share

- 2021-06: CNY 28.13 per share

- 2021-07: CNY 30.48 per share

- 2021-08: CNY 29.99 per share

- 2021-09: CNY 28.52 per share

- 2021-10: CNY 31.08 per share

- 2021-11: CNY 32.50 per share

- 2021-12: CNY 35.83 per share

- 2022-01: CNY 33.77 per share

- 2022-02: CNY 32.93 per share

- 2022-03: CNY 27.15 per share

- 2022-04: CNY 24.66 per share

- 2022-05: CNY 24.65 per share

- 2022-06: CNY 26.48 per share

- 2022-07: CNY 24.27 per share

- 2022-08: CNY 23.21 per share

- 2022-09: CNY 19.75 per share

- 2022-10: CNY 23.02 per share

- 2022-11: CNY 22.20 per share

- 2022-12: CNY 21.52 per share

- 2023-01: CNY 23.66 per share

- 2023-02: CNY 39.00 per share

- 2023-03: CNY 35.10 per share

- 2023-04: CNY 41.10 per share

- 2023-05: CNY 44.56 per share

- 2023-06: CNY 48.50 per share

- 2023-07: CNY 45.71 per share

- 2023-08: CNY 39.13 per share

- 2023-09: CNY 37.61 per share

- 2023-10: CNY 29.39 per share

- 2023-11: CNY 35.23 per share

- 2023-12: CNY 33.20 per share

- 2024-01: CNY 28.07 per share

- 2024-02: CNY 37.39 per share

- 2024-03: CNY 42.90 per share

- 2024-04: CNY 40.91 per share

- 2024-05: CNY 36.41 per share

- 2024-06: CNY 36.37 per share

- 2024-07: CNY 37.26 per share

- 2024-08: CNY 32.38 per share

- 2024-09: CNY 41.50 per share

- 2024-10: CNY 46.78 per share

- 2024-11: CNY 47.80 per share

- 2024-12: CNY 51.88 per share

- 2025-01: CNY 51.94 per share

- 2025-02: CNY 59.21 per share

- 2025-03: CNY 53.48 per share

- 2025-04: CNY 50.85 per share

- 2025-05: CNY 48.95 per share

- 2025-06: CNY 50.88 per share

- 2025-07: CNY 55.77 per share

- 2025-08: CNY 67.15 per share

- 2025-09: CNY 74.42 per share

- 2025-10: CNY 65.23 per share

- 2025-11: CNY 61.59 per share

- 2025-12: CNY 66.60 per share

- 2026-01: CNY 62.90 per share

- 2026-02: CNY 63.88 per share

- 2026-03: CNY 56.08 per share

- 2026-04: CNY 69.75 per share

- 2026-05: CNY 64.63 per share

- 2026-06: CNY 70.00 per share

- 2026-07: CNY 71.81 per share

- 2026-08: CNY 85.18 per share

- 2026-09: CNY 65.93 per share

- 2026-10: CNY 61.65 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 6.48 per share, central CNY 8.61 per share, high CNY 9.86 per share

- FY2017: low CNY 10.59 per share, central CNY 13.23 per share, high CNY 14.78 per share

- FY2018: low CNY 13.62 per share, central CNY 16.91 per share, high CNY 18.83 per share

- FY2019: low CNY 12.77 per share, central CNY 16.38 per share, high CNY 18.49 per share

- FY2020: low CNY 18.70 per share, central CNY 22.98 per share, high CNY 25.47 per share

- FY2021: low CNY 14.88 per share, central CNY 19.40 per share, high CNY 22.03 per share

- FY2022: low CNY 17.39 per share, central CNY 22.64 per share, high CNY 25.70 per share

- FY2023: low CNY 20.91 per share, central CNY 26.82 per share, high CNY 30.26 per share

- FY2024: low CNY 28.12 per share, central CNY 38.69 per share, high CNY 44.84 per share

- FY2025: low CNY 36.76 per share, central CNY 50.43 per share, high CNY 58.39 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.