# AVIC Aircraft (000768.SHE)

Canonical: https://gigainvestors.com/s/000768.SHE

Analysis as of: 2026-10-16T07:35:57.489Z. 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 23.19 per share; close as of 2026-10-15.

Estimated value: low CNY 6.74 per share, central CNY 7.20 per share, high CNY 7.80 per share. Buy at or below the central value CNY 7.20 per share. Valuation as of 2026-10-16T07:35:57.489Z; scenarios are not confidence intervals.

Expected annual return: 4.3% at the stated quote. About 4.3% 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

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

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.29×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.01×

- FY2017: 0.02×

- FY2018: 0.02×

- FY2019: 0.04×

- FY2020: 0.03×

- FY2021: 0.02×

- FY2022: 0.02×

- FY2023: 0.03×

- FY2024: 0.03×

- FY2025: 0.03×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC median below threshold

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

- ROIC, median of available years: 6.6%

- ROIC, second-lowest year: 3.2%

- Typical minus recent gross margin: 1.2 pp

- Typical gross margin (annual median): 6.8%

- Recent gross margin (lower of latest and 3-year median): 5.6%

- Years with nonpositive capital: 1

- Capital spending / revenue: 2.5%

- ROIC including acquisitions, ten-year median: 8.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 3.2%

- FY2017: 4.5%

- FY2018: 5.8%

- FY2019: 15.9%

- FY2020: 28.0%

- FY2021: 3.4%

- FY2022: 2.7%

- FY2023: 56.1%

- FY2024: 24.3%

- FY2025: 7.4%

### economics: pass

- Owner earnings / net income, 5-yr: 1.23×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 5.2B

- Net income, five-year total: CNY 4.2B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -2.7 pp

- Working capital / revenue, change between three-year averages: -18.5 pp

- Working capital / revenue, final three-year average: -3.7%

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

- FY2021: 1.81×

- FY2022: 1.62×

- FY2023: 0.99×

- FY2024: 0.99×

- FY2025: 1.13×

### 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: 4.5% vs 24.3%

- Per-share earnings: 0.15 to 0.37 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.3%

- Ordinary dilution, 5-year annual growth: 0.1%

- Market cap gain: CNY 11B

- Cumulative retained earnings: CNY 3.7B

- Diluted shares, 10-year annual growth: 0.3%

- Diluted shares, 5-year annual growth: 0.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 12.0%

- Per-share value change: CNY 0.22

- Per-share value, starting three-year median: CNY 0.15

- Per-share value, ending three-year median: CNY 0.37

- Buyback history: 0 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 1.8B

- Cumulative net income, 10 years: CNY 7.5B

- ROIC, first three-year median: 4.5%

- ROIC, last three-year median: 24.3%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.15

- FY2017: CNY 0.17

- FY2018: CNY 0.20

- FY2019: CNY 0.39

- FY2020: CNY 0.28

- FY2021: CNY 0.24

- FY2022: CNY 0.19

- FY2023: CNY 0.31

- FY2024: CNY 0.37

- FY2025: CNY 0.41

### accounting: fail

- Sloan accruals exceed 10%

- earnings not backed by cash

- Sloan accruals: 12.2%

- Receivables to sales index (DSRI): 1.35×

- Restructuring years, last five: 0

- Earnings backed by cash: No

- Operating cash / earnings: -7.26×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.08×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -2.6%

- FY2017: -2.1%

- FY2018: -1.8%

- FY2019: 0.8%

- FY2020: -3.3%

- FY2021: 21.7%

- FY2022: -35.0%

- FY2023: 7.8%

- FY2024: 1.5%

- FY2025: 12.2%

## Holders

## Price story

Down 41% since Nov 2021 · sales -5.1%

Story as of 2026-10-16T10:00:06.406Z; price observation 2026-10-15.

Price needs cash profits to grow 22.2% a year for ten years

### Sales · FY2024–2025

sales -5.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 26B 

- FY2017: CNY 31B 

- FY2018: CNY 33B 

- FY2019: CNY 32B 

- FY2020: CNY 33B 

- FY2021: CNY 33B 

- FY2022: CNY 38B 

- FY2023: CNY 40B 

- FY2024: CNY 43B 

- FY2025: CNY 41B 

### Gross margin · FY2025

gross margin 6.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 6.8% 

- FY2017: 6.9% 

- FY2018: 5.6% 

- FY2019: 7.5% 

- FY2020: 7.5% 

- FY2021: 7.1% 

- FY2022: 6.8% 

- FY2023: 5.6% 

- FY2024: 5.6% 

- FY2025: 6.8% 

## Owner memo

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

### How it makes money

Operates in aerospace & defense; annual sales are CNY 41 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:57.489Z); FY2025: revenue 41013725506.67; grossProfit 2779665986.5; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 000768.SHE: AVIC Xi'an Aircraft Industry Group Company Ltd. researches, develops, manufactures, sells, maintains, and services military aircraft and military and civilian aviation parts in China. It provides large and medium-sized military transport aircrafts, bombers, and special purpose aircrafts. It also offers development of key components such as fuselages and wings for the C909, C919, AG600, and MA series aircraft, as well as manufactures wings and fuselages for the Airbus A320/A321 series aircraft, and vertical tail and inboard flaps for the Boeing B737 series aircraft. In addition, the company offers aviation engineering technical support, customer service, technical information, user training, and aircraft parts support. The company was formerly known as AVIC Aircraft Co., Ltd. The company was incorporated in 1997 and is based in Xi'an, China.

### Why customers stay

Margins ranged from 5.6% to 6.8% during 2023–25; it earns 6.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:57.489Z); FY2023: grossProfit / revenue = 5.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:57.489Z); FY2024: grossProfit / revenue = 5.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:57.489Z); FY2025: grossProfit / revenue = 6.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:57.489Z); 10-year return on capital observations [[2016,0.032077894111520094],[2017,0.045220910413512345],[2018,0.05779587840400988],[2019,0.15945695252885494],[2020,0.28046581301541673],[2021,0.033909931461951974],[2022,0.02748705852292393],[2023,0.5608126111764488],[2024,0.24290504497549634],[2025,0.0740654231531055]]; median 0.0659306507785577. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 7% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:57.489Z); Gross margin observations: [[2021,0.07145574157323072],[2022,0.06829299461800081],[2023,0.056118626741158084]]; 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 2026-10-16T07:35:57.489Z); FY2016: growth capex 133662066; upkeep 506644059; owner earnings 413133369. Growth capex / owner earnings = 0.32353248618849767.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:57.489Z); FY2017: growth capex 638912246; upkeep 532638630; owner earnings 471401718. Growth capex / owner earnings = 1.355345603555904.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:57.489Z); FY2018: growth capex 328000229.70000005; upkeep 503031757; owner earnings 558038218. Growth capex / owner earnings = 0.5877737744836682.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:57.489Z); FY2019: growth capex 0; upkeep 722589638; owner earnings 1513406620. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:57.489Z); FY2020: growth capex 0; upkeep 1071343071; owner earnings 917662809. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:57.489Z); FY2021: growth capex 0; upkeep 666007839; owner earnings 1183584632.366. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:57.489Z); FY2022: growth capex 0; upkeep 874981681; owner earnings 849566696.79. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:57.489Z); FY2023: growth capex 11874502; upkeep 1159606921; owner earnings 851307261.18. Growth capex / owner earnings = 0.013948550119895268.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:57.489Z); FY2024: growth capex 353190056; upkeep 1050399622; owner earnings 1014425924.206. Growth capex / owner earnings = 0.34816741919962757.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:57.489Z); FY2025: growth capex 0; upkeep 908990982.53; owner earnings 1302006592.292. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:57.489Z); Dividend observations: [[2016,373607869],[2017,215932956.3],[2018,322586971],[2019,452977319],[2020,584304616],[2021,396742835],[2022,235334831],[2023,278174007],[2024,317495578],[2025,347936338.36]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 55% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 000768.SHE SharesStats.PercentInsiders = 54.964999999999996 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 22.2% yearly over ten years; actual growth was 12.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:57.489Z); Ten-year compound average after fade. Initial solved rate 0.3099212707633735. Price 23.19; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.1492094724853518 → FY2025 0.46900901735369394. Closing-price date 2026-10-15.

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

- 2016-10: CNY 22.33 per share

- 2016-11: CNY 22.24 per share

- 2016-12: CNY 21.26 per share

- 2017-01: CNY 23.59 per share

- 2017-02: CNY 23.23 per share

- 2017-03: CNY 24.64 per share

- 2017-04: CNY 23.90 per share

- 2017-05: CNY 17.25 per share

- 2017-06: CNY 18.44 per share

- 2017-07: CNY 18.19 per share

- 2017-08: CNY 18.96 per share

- 2017-09: CNY 19.23 per share

- 2017-10: CNY 18.38 per share

- 2017-11: CNY 17.34 per share

- 2017-12: CNY 16.89 per share

- 2018-01: CNY 15.70 per share

- 2018-02: CNY 14.79 per share

- 2018-03: CNY 17.18 per share

- 2018-04: CNY 18.47 per share

- 2018-05: CNY 15.86 per share

- 2018-06: CNY 15.64 per share

- 2018-07: CNY 16.70 per share

- 2018-08: CNY 15.30 per share

- 2018-09: CNY 15.88 per share

- 2018-10: CNY 14.80 per share

- 2018-11: CNY 14.99 per share

- 2018-12: CNY 13.24 per share

- 2019-01: CNY 13.89 per share

- 2019-02: CNY 16.22 per share

- 2019-03: CNY 17.05 per share

- 2019-04: CNY 16.16 per share

- 2019-05: CNY 15.70 per share

- 2019-06: CNY 15.75 per share

- 2019-07: CNY 16.46 per share

- 2019-08: CNY 16.07 per share

- 2019-09: CNY 15.55 per share

- 2019-10: CNY 15.01 per share

- 2019-11: CNY 15.90 per share

- 2019-12: CNY 16.38 per share

- 2020-01: CNY 16.65 per share

- 2020-02: CNY 17.01 per share

- 2020-03: CNY 15.85 per share

- 2020-04: CNY 17.62 per share

- 2020-05: CNY 17.18 per share

- 2020-06: CNY 17.74 per share

- 2020-07: CNY 23.70 per share

- 2020-08: CNY 24.38 per share

- 2020-09: CNY 22.99 per share

- 2020-10: CNY 24.19 per share

- 2020-11: CNY 31.15 per share

- 2020-12: CNY 36.68 per share

- 2021-01: CNY 31.12 per share

- 2021-02: CNY 31.67 per share

- 2021-03: CNY 24.26 per share

- 2021-04: CNY 24.05 per share

- 2021-05: CNY 27.92 per share

- 2021-06: CNY 26.28 per share

- 2021-07: CNY 29.10 per share

- 2021-08: CNY 30.23 per share

- 2021-09: CNY 31.03 per share

- 2021-10: CNY 30.31 per share

- 2021-11: CNY 39.18 per share

- 2021-12: CNY 36.50 per share

- 2022-01: CNY 26.41 per share

- 2022-02: CNY 30.51 per share

- 2022-03: CNY 28.79 per share

- 2022-04: CNY 21.77 per share

- 2022-05: CNY 26.00 per share

- 2022-06: CNY 30.29 per share

- 2022-07: CNY 31.15 per share

- 2022-08: CNY 27.94 per share

- 2022-09: CNY 26.07 per share

- 2022-10: CNY 27.21 per share

- 2022-11: CNY 26.76 per share

- 2022-12: CNY 25.45 per share

- 2023-01: CNY 26.85 per share

- 2023-02: CNY 26.28 per share

- 2023-03: CNY 25.73 per share

- 2023-04: CNY 25.90 per share

- 2023-05: CNY 24.87 per share

- 2023-06: CNY 26.75 per share

- 2023-07: CNY 25.75 per share

- 2023-08: CNY 23.38 per share

- 2023-09: CNY 22.71 per share

- 2023-10: CNY 22.26 per share

- 2023-11: CNY 21.88 per share

- 2023-12: CNY 22.37 per share

- 2024-01: CNY 19.29 per share

- 2024-02: CNY 20.83 per share

- 2024-03: CNY 21.64 per share

- 2024-04: CNY 22.32 per share

- 2024-05: CNY 24.17 per share

- 2024-06: CNY 24.03 per share

- 2024-07: CNY 26.15 per share

- 2024-08: CNY 24.53 per share

- 2024-09: CNY 27.60 per share

- 2024-10: CNY 28.68 per share

- 2024-11: CNY 27.03 per share

- 2024-12: CNY 28.24 per share

- 2025-01: CNY 25.44 per share

- 2025-02: CNY 24.17 per share

- 2025-03: CNY 23.65 per share

- 2025-04: CNY 23.22 per share

- 2025-05: CNY 25.01 per share

- 2025-06: CNY 27.34 per share

- 2025-07: CNY 28.50 per share

- 2025-08: CNY 28.88 per share

- 2025-09: CNY 26.87 per share

- 2025-10: CNY 25.67 per share

- 2025-11: CNY 24.23 per share

- 2025-12: CNY 25.38 per share

- 2026-01: CNY 28.25 per share

- 2026-02: CNY 30.83 per share

- 2026-03: CNY 24.66 per share

- 2026-04: CNY 23.50 per share

- 2026-05: CNY 21.75 per share

- 2026-06: CNY 20.48 per share

- 2026-07: CNY 21.11 per share

- 2026-08: CNY 21.96 per share

- 2026-09: CNY 23.12 per share

- 2026-10: CNY 23.41 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 4.39 per share, central CNY 5.30 per share, high CNY 5.83 per share

- FY2017: low CNY 4.60 per share, central CNY 5.69 per share, high CNY 6.32 per share

- FY2018: low CNY 5.29 per share, central CNY 5.81 per share, high CNY 6.29 per share

- FY2019: low CNY 6.66 per share, central CNY 6.95 per share, high CNY 7.34 per share

- FY2020: low CNY 6.86 per share, central CNY 7.16 per share, high CNY 7.57 per share

- FY2021: low CNY 5.75 per share, central CNY 6.24 per share, high CNY 6.88 per share

- FY2022: low CNY 13.37 per share, central CNY 13.93 per share, high CNY 14.67 per share

- FY2023: low CNY 11.08 per share, central CNY 11.68 per share, high CNY 12.48 per share

- FY2024: low CNY 10.20 per share, central CNY 10.75 per share, high CNY 11.49 per share

- FY2025: low CNY 7.40 per share, central CNY 7.92 per share, high CNY 8.62 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

Prior published observations retained from 2026-10-15T06:41:41.942Z where newer inputs omit a numeric field or fiscal period.

## 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.