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HK Equities · Finance research note

HKEX 4335 - Intel Corporation

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Evidence and analysis

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2. Company Fundamentals

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.) 3802517886031149112754176.00%
Risk / Std Dev (Ann.) 1139.60%

Price Snapshot:

Metric Value
Last Price HKD

DuPont Model Analysis

DuPont analysis requires revenue, net income, total assets, and shareholders’ equity for two comparable annual periods. The required historical statement data was not available from the source at the time of refresh, so the analysis is marked N/A rather than estimated.

DuPont component Latest two comparable fiscal years
Revenue N/A
Net income N/A
Total assets N/A
Shareholders’ equity N/A
Net margin N/A
Asset turnover N/A
Equity multiplier N/A
ROE N/A

Source checked: Yahoo Finance annual statements.

2.5 FCFF DCF Valuation

Valuation basis: This research model follows a five-year, unlevered FCFF DCF. It starts from reported annual operating inputs, forecasts revenue and operating cash conversion under an explicit mechanical policy, discounts FCFF at WACC, applies a Gordon-growth terminal value, and bridges enterprise value to an indicative common-equity value per share. It is an analytical estimate rather than a recommendation or personalised target price.

Step 1 — Forecast Operating Profit and NOPAT

Reported operating input Value
Revenue HK$52.85B
Prior annual revenue HK$53.10B
EBIT HK$2.65B
Tax rate 21.00%
NOPAT = EBIT × (1 − tax rate) HK$2.09B
Forecast start-growth basis -0.47%
Forecast policy latest reported annual revenue growth, bounded to -10.00% / 15.00%

Step 2 — Calculate FCFF

Current FCFF building block Value
NOPAT HK$2.09B
Add: depreciation & amortisation HK$11.71B
Less: capital expenditure -HK$14.65B
Less/(add): working-capital cash-flow movement -HK$1.75B
Current unlevered FCFF -HK$2.60B

Explicit FCFF forecast

Forecast year Revenue growth NOPAT D&A Capex Change in NWC FCFF Present value
1 -0.47% HK$2.08B HK$11.65B -HK$14.58B -HK$1.74B -HK$2.58B -HK$2.39B
2 0.27% HK$2.09B HK$11.68B -HK$13.88B -HK$1.74B -HK$1.86B -HK$1.47B
3 1.02% HK$2.11B HK$11.80B -HK$13.28B -HK$1.76B -HK$1.13B -HK$772.59M
4 1.76% HK$2.15B HK$12.01B -HK$12.76B -HK$1.79B -HK$400.20M -HK$233.76M
5 2.50% HK$2.20B HK$12.31B -HK$12.31B -HK$1.84B HK$362.71M HK$181.70M

Step 3 — Determine the Discount Rate (WACC)

WACC input Value
Risk-free rate 4.71%
Equity risk premium assumption 5.50%
Beta 2.24
Cost of equity 17.04%
Pre-tax cost of debt 2.26%
WACC 16.60%
WACC validation requires assumption review

Step 4 — Estimate Terminal Value

Terminal-value input Value
Perpetuity growth rate 2.50%
Terminal value HK$2.64B
Implied terminal EV / EBITDA 0.17x
Terminal value as % of enterprise value -35.26%

Step 5 — Discount Cash Flows to Enterprise Value

Enterprise-value component Value
Present value of explicit FCFF -HK$4.69B
Present value of terminal value HK$1.22B
Indicated enterprise value -HK$3.47B
Discounting convention mid-year for explicit FCFF; terminal value discounted at year-end five

Step 6 — Convert Enterprise Value to Equity Value

Equity bridge Value
Indicated enterprise value -HK$3.47B
Less: gross interest-bearing debt HK$46.59B
Add: cash and equivalents HK$37.42B
Add: affiliate investments HK$0.00
Less: minority interests HK$12.08B
Indicated common equity value -HK$24.72B

Step 7 — Calculate Indicative Value Per Share

Per-share output Value
Shares used 4,530,000,000.00
Share-count basis reported diluted weighted-average shares
Current market price HK$300.00
DCF indicative value per share -HK$5.46
Indicative value vs. market price -101.82%

Model Integrity Checks

Check Result
Perpetuity growth is below the risk-free rate pass
Perpetuity growth is below WACC pass
WACC is within the configured operating-company range review required
Terminal-year FCFF is positive pass
Terminal capex converges to D&A pass
Terminal-value concentration review required
Implied price differs from spot by more than 30% review required

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks 1/4 evidenced checks
Lynch-inspired balance-and-growth checks 2/4 evidenced checks

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:09:15.896353 UTC; latest reported fiscal period: 2025-12-31 00:00:00. Default assumptions: five-year forecast, mid-year discounting for explicit FCFF, a maximum 2.50% perpetuity-growth rate below both WACC and the risk-free rate, historical operating-ratio persistence, and capex convergence to D&A by year five. No sell-side consensus or management guidance is substituted for reported inputs. This is research and analysis only, not personalized financial advice.

2.7 Quantitative Factor Diagnostics

Model basis: Daily issuer USD excess returns are regressed in-sample using ordinary least squares on matching regional Fama–French factors. FF3 estimates market, size, and value loadings; FF5 adds profitability and investment. Coefficients are descriptive historical exposures, not predictions.

Estimation input Value
Regional factor set Asia Pacific ex Japan
Factor-return currency USD
Issuer-return basis USD adjusted total return
Estimation window 2025-08-20 to 2026-06-30
Aligned daily observations 210
Minimum observation requirement 120
Currency conversion for HK listings HKD adjusted close divided by daily USD/HKD close before simple daily return calculation

Fama–French Three-Factor and Five-Factor Results

Diagnostic FF3 FF5
Annualised alpha 983.15% 889.57%
Adjusted R² -0.01 -0.02
Annualised residual volatility 219.26% 219.14%
Factor loading (t-statistic) FF3 FF5
Market excess return (Mkt-RF) -0.14 (-0.12) 0.07 (0.05)
Size (SMB) 1.28 (0.70) 1.92 (0.83)
Value (HML) -1.49 (-0.86) -1.52 (-0.78)
Profitability (RMW) NM 0.50 (0.20)
Investment (CMA) NM 1.19 (0.43)

Definitions: Mkt-RF is the market return less the risk-free rate; SMB is small minus big; HML is high minus low book-to-market; RMW is robust minus weak profitability; CMA is conservative minus aggressive investment. Factor returns are sourced from the Kenneth R. French Data Library; issuer adjusted-return history is sourced from Yahoo Finance. For Hong Kong listings, adjusted HKD prices are converted into USD with daily USD/HKD closes before return calculation to match the USD regional factor basis. This is an in-sample historical regression; coefficients and t-statistics do not establish causation or predict future returns. This is research and analysis only, not personalized financial advice.

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