# China Zhenhua Group Science & Technology (000733.SHE)

Canonical: https://gigainvestors.com/s/000733.SHE

Analysis as of: 2026-10-16T07:39:16.928Z. Financial observations: FY1996–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 36.31 per share; close as of 2026-10-15.

Estimated value: low CNY 39.25 per share, central CNY 43.32 per share, high CNY 48.74 per share. Buy at or below the central value CNY 43.32 per share. Valuation as of 2026-10-16T07:39:16.928Z; scenarios are not confidence intervals.

Expected annual return: 11.9% at the stated quote. About 11.9% 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: fail

- 3 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.66×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.03×

- FY2017: 0.03×

- FY2018: 0.07×

- FY2019: 0.11×

- FY2020: 0.18×

- FY2021: 0.31×

- FY2022: 0.38×

- FY2023: 0.40×

- FY2024: 0.21×

- FY2025: 0.23×

### moat: fail

- ROIC median below threshold

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

- ROIC, median of available years: 9.2%

- ROIC, second-lowest year: 3.7%

- Typical minus recent gross margin: 0.7 pp

- Typical gross margin (annual median): 46.6%

- Recent gross margin (lower of latest and 3-year median): 46.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 6.2%

- ROIC including acquisitions, ten-year median: 7.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 3.7%

- FY2017: 3.7%

- FY2018: 6.0%

- FY2019: 5.7%

- FY2020: 9.4%

- FY2021: 21.7%

- FY2022: 26.1%

- FY2023: 24.6%

- FY2024: 9.0%

- FY2025: 11.0%

### economics: fail

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 0.97×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 8.3B

- Net income, five-year total: CNY 8.6B

- Return on incremental invested capital: 20.0%

- Working capital / revenue, annual change: 8.8 pp

- Working capital / revenue, change between three-year averages: 67.3 pp

- Working capital / revenue, final three-year average: 115.9%

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

- FY2021: 1.00×

- FY2022: 0.99×

- FY2023: 0.99×

- FY2024: 0.80×

- FY2025: 0.98×

### management: fail

- 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: 3.7% vs 11.0%

- Per-share earnings: 0.39 to 1.85 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 1.4%

- Ordinary dilution, 5-year annual growth: 1.4%

- Market cap gain: CNY 21B

- Cumulative retained earnings: CNY 7.8B

- Diluted shares, 10-year annual growth: 1.4%

- Diluted shares, 5-year annual growth: 1.4%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 21.4%

- Per-share value change: CNY 1.46

- Per-share value, starting three-year median: CNY 0.39

- Per-share value, ending three-year median: CNY 1.85

- Buyback history: 0 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 25M

- Cumulative net income, 10 years: CNY 10B

- ROIC, first three-year median: 3.7%

- ROIC, last three-year median: 11.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.39

- FY2017: CNY 0.46

- FY2018: CNY 0.65

- FY2019: CNY 0.58

- FY2020: CNY 1.17

- FY2021: CNY 2.89

- FY2022: CNY 4.60

- FY2023: CNY 5.13

- FY2024: CNY 1.75

- FY2025: CNY 1.85

### accounting: pass

- Sloan accruals: -1.9%

- Receivables to sales index (DSRI): 0.67×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.36×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.01×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 0.2%

- FY2017: 8.3%

- FY2018: -0.1%

- FY2019: 0.4%

- FY2020: 7.5%

- FY2021: 1.4%

- FY2022: 11.5%

- FY2023: 8.1%

- FY2024: -3.5%

- FY2025: -1.9%

## Holders

## Price story

Down 73% since Jun 2022 · sales +10.3%

Story as of 2026-10-16T10:00:10.699Z; price observation 2026-10-15.

Price needs cash profits to shrink 2% a year for ten years

### Sales · FY2024–2025

sales +10.3%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 6.6B 

- FY2017: CNY 8.0B 

- FY2018: CNY 5.3B 

- FY2019: CNY 3.7B 

- FY2020: CNY 3.9B 

- FY2021: CNY 5.7B 

- FY2022: CNY 7.3B 

- FY2023: CNY 7.8B 

- FY2024: CNY 5.2B 

- FY2025: CNY 5.8B 

### Gross margin · FY2025

gross margin 46%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 15.9% 

- FY2017: 14.3% 

- FY2018: 24.0% 

- FY2019: 43.1% 

- FY2020: 51.7% 

- FY2021: 57.9% 

- FY2022: 60.9% 

- FY2023: 58.2% 

- FY2024: 47.3% 

- FY2025: 46.0% 

## Owner memo

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

### How it makes money

Operates in electronic components; annual sales are CNY 5.8 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:16.928Z); FY2025: revenue 5754973967.98; grossProfit 2644416811.37; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 000733.SHE: China Zhenhua (Group) Science & Technology Co., Ltd engages in the manufacture and sale of electronic components in China. It operates through the New Electronic Components and Modern Services segments. It offers basic components, such as diodes, transistors, IGBTs, and SiC devices, resistors, capacitors, magnetic components, fuses, relays, contactors, electromechanical switches, switches, connectors, circuit breakers, reducers, intelligent control modules, combination switches, vacuum interrupters, piezoelectric elements, sensors, microwave elements, and microwave assemblies; electronic functional materials; hybrid integrated circuits, including thick-film hybrid integrated circuit power supplies, microcircuit module power supplies, power supply components and systems, brushless motor drivers, power filters, and RF modules; and application development, such as power management, intelligent power distribution, motor control modules/components, integrated display and control components, and power modules/components. The company serves the aviation, aerospace, electronics, weaponry, shipbuilding, and nuclear industry. China Zhenhua (Group) Science & Technology Co., Ltd was founded in 1997 and is based in Guiyang, China.

### Why customers stay

Margins ranged from 46% to 58.2% during 2023–25; it earns 9.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:16.928Z); FY2023: grossProfit / revenue = 58.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:16.928Z); FY2024: grossProfit / revenue = 47.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:16.928Z); FY2025: grossProfit / revenue = 46%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:16.928Z); 10-year return on capital observations [[2016,0.03692178753829665],[2017,0.03726636202058365],[2018,0.06040031299542283],[2019,0.056503484036893675],[2020,0.09449053551176348],[2021,0.2171911892363774],[2022,0.26119030884670696],[2023,0.2459869083363416],[2024,0.09033784878109714],[2025,0.10959807059399883]]; median 0.09241419214643032. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 0.1% of cash earnings on expansion; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:16.928Z); FY2016: growth capex 205339752; upkeep 157434244; owner earnings 181502727. Growth capex / owner earnings = 1.1313314978457596.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:16.928Z); FY2017: growth capex 178582861; upkeep 200515383; owner earnings 203626884. Growth capex / owner earnings = 0.8770102330888686.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:16.928Z); FY2018: growth capex 0; upkeep 258108733; owner earnings 264154879. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:16.928Z); FY2019: growth capex 0; upkeep 330036676; owner earnings 140225473. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:16.928Z); FY2020: growth capex 87004319.10696572; upkeep 313276964.8930343; owner earnings 485310492.1069657. Growth capex / owner earnings = 0.17927557825761858.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:16.928Z); FY2021: growth capex 258993319; upkeep 217602384; owner earnings 1489786480.98. Growth capex / owner earnings = 0.1738459318208009.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:16.928Z); FY2022: growth capex 192901864; upkeep 245327244; owner earnings 2364627009.44. Growth capex / owner earnings = 0.08157813609922512.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:16.928Z); FY2023: growth capex 176490855.9859652; upkeep 287848779.0140348; owner earnings 2643766896.6219654. Growth capex / owner earnings = 0.06675734392902559.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:16.928Z); FY2024: growth capex 0; upkeep 462707220; owner earnings 775171934.622. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:16.928Z); FY2025: growth capex 723069.4700000286; upkeep 360161646.07; owner earnings 1008222344.72. Growth capex / owner earnings = 0.0007171726294172115.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:16.928Z); Dividend observations: [[2016,47626962],[2017,60040420],[2018,83040656],[2019,91174522],[2020,80108824],[2021,114600109],[2022,181429305],[2023,595873077],[2024,650656600],[2025,122868028.39]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 32% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 000733.SHE SharesStats.PercentInsiders = 31.991000000000003 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 2% yearly over ten years; actual growth was 17.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:39:16.928Z); Ten-year compound average after fade. Initial solved rate -0.04148439533103404. Price 36.31; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.3655909186185139 → FY2025 1.8193719565421187. Closing-price date 2026-10-15.

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

- 2016-10: CNY 19.16 per share

- 2016-11: CNY 19.14 per share

- 2016-12: CNY 17.85 per share

- 2017-01: CNY 18.00 per share

- 2017-02: CNY 18.16 per share

- 2017-03: CNY 18.82 per share

- 2017-04: CNY 16.25 per share

- 2017-05: CNY 15.46 per share

- 2017-06: CNY 15.90 per share

- 2017-07: CNY 15.68 per share

- 2017-08: CNY 16.06 per share

- 2017-09: CNY 16.65 per share

- 2017-10: CNY 15.74 per share

- 2017-11: CNY 14.61 per share

- 2017-12: CNY 14.90 per share

- 2018-01: CNY 13.19 per share

- 2018-02: CNY 12.42 per share

- 2018-03: CNY 13.59 per share

- 2018-04: CNY 14.90 per share

- 2018-05: CNY 13.79 per share

- 2018-06: CNY 13.31 per share

- 2018-07: CNY 13.48 per share

- 2018-08: CNY 12.60 per share

- 2018-09: CNY 13.58 per share

- 2018-10: CNY 11.72 per share

- 2018-11: CNY 11.32 per share

- 2018-12: CNY 10.94 per share

- 2019-01: CNY 11.15 per share

- 2019-02: CNY 13.54 per share

- 2019-03: CNY 15.40 per share

- 2019-04: CNY 14.82 per share

- 2019-05: CNY 16.67 per share

- 2019-06: CNY 16.48 per share

- 2019-07: CNY 15.43 per share

- 2019-08: CNY 16.71 per share

- 2019-09: CNY 15.88 per share

- 2019-10: CNY 16.40 per share

- 2019-11: CNY 15.19 per share

- 2019-12: CNY 17.15 per share

- 2020-01: CNY 19.06 per share

- 2020-02: CNY 23.48 per share

- 2020-03: CNY 18.80 per share

- 2020-04: CNY 20.33 per share

- 2020-05: CNY 20.83 per share

- 2020-06: CNY 22.48 per share

- 2020-07: CNY 36.97 per share

- 2020-08: CNY 44.93 per share

- 2020-09: CNY 44.97 per share

- 2020-10: CNY 41.76 per share

- 2020-11: CNY 46.25 per share

- 2020-12: CNY 58.85 per share

- 2021-01: CNY 62.60 per share

- 2021-02: CNY 56.25 per share

- 2021-03: CNY 54.60 per share

- 2021-04: CNY 48.37 per share

- 2021-05: CNY 56.98 per share

- 2021-06: CNY 61.07 per share

- 2021-07: CNY 82.03 per share

- 2021-08: CNY 114.83 per share

- 2021-09: CNY 100.22 per share

- 2021-10: CNY 103.60 per share

- 2021-11: CNY 121.03 per share

- 2021-12: CNY 124.28 per share

- 2022-01: CNY 112.06 per share

- 2022-02: CNY 117.17 per share

- 2022-03: CNY 113.40 per share

- 2022-04: CNY 105.71 per share

- 2022-05: CNY 119.30 per share

- 2022-06: CNY 135.97 per share

- 2022-07: CNY 118.28 per share

- 2022-08: CNY 112.19 per share

- 2022-09: CNY 115.98 per share

- 2022-10: CNY 134.85 per share

- 2022-11: CNY 114.16 per share

- 2022-12: CNY 114.23 per share

- 2023-01: CNY 113.43 per share

- 2023-02: CNY 104.00 per share

- 2023-03: CNY 90.06 per share

- 2023-04: CNY 89.87 per share

- 2023-05: CNY 92.20 per share

- 2023-06: CNY 95.85 per share

- 2023-07: CNY 89.35 per share

- 2023-08: CNY 91.68 per share

- 2023-09: CNY 80.97 per share

- 2023-10: CNY 66.91 per share

- 2023-11: CNY 64.62 per share

- 2023-12: CNY 58.84 per share

- 2024-01: CNY 44.60 per share

- 2024-02: CNY 57.36 per share

- 2024-03: CNY 54.38 per share

- 2024-04: CNY 46.68 per share

- 2024-05: CNY 45.15 per share

- 2024-06: CNY 41.53 per share

- 2024-07: CNY 40.58 per share

- 2024-08: CNY 37.72 per share

- 2024-09: CNY 43.67 per share

- 2024-10: CNY 47.43 per share

- 2024-11: CNY 46.26 per share

- 2024-12: CNY 42.17 per share

- 2025-01: CNY 41.04 per share

- 2025-02: CNY 43.62 per share

- 2025-03: CNY 53.75 per share

- 2025-04: CNY 51.12 per share

- 2025-05: CNY 45.93 per share

- 2025-06: CNY 50.05 per share

- 2025-07: CNY 47.53 per share

- 2025-08: CNY 50.91 per share

- 2025-09: CNY 50.24 per share

- 2025-10: CNY 50.42 per share

- 2025-11: CNY 47.33 per share

- 2025-12: CNY 52.41 per share

- 2026-01: CNY 54.55 per share

- 2026-02: CNY 57.74 per share

- 2026-03: CNY 45.39 per share

- 2026-04: CNY 42.61 per share

- 2026-05: CNY 51.49 per share

- 2026-06: CNY 56.64 per share

- 2026-07: CNY 40.97 per share

- 2026-08: CNY 41.38 per share

- 2026-09: CNY 39.13 per share

- 2026-10: CNY 37.40 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 8.22 per share, central CNY 10.78 per share, high CNY 12.27 per share

- FY2017: low CNY 9.12 per share, central CNY 12.37 per share, high CNY 14.26 per share

- FY2018: low CNY 8.14 per share, central CNY 9.97 per share, high CNY 11.10 per share

- FY2019: low CNY 5.74 per share, central CNY 6.11 per share, high CNY 6.61 per share

- FY2020: low CNY 5.06 per share, central CNY 5.50 per share, high CNY 6.09 per share

- FY2021: low CNY 8.99 per share, central CNY 9.82 per share, high CNY 10.92 per share

- FY2022: low CNY 25.66 per share, central CNY 33.89 per share, high CNY 39.18 per share

- FY2023: low CNY 57.63 per share, central CNY 72.73 per share, high CNY 83.61 per share

- FY2024: low CNY 36.01 per share, central CNY 39.75 per share, high CNY 44.73 per share

- FY2025: low CNY 40.33 per share, central CNY 44.45 per share, high CNY 49.94 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.