# Beijing New Building Materials Public (000786.SHE)

Canonical: https://gigainvestors.com/s/000786.SHE

Analysis as of: 2026-10-16T07:38:08.146Z. Financial observations: FY1996–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

A wonderful business at a fair price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: yes.

Share price: CNY 16.00 per share; close as of 2026-10-15.

Estimated value: low CNY 28.19 per share, central CNY 37.25 per share, high CNY 43.24 per share. Buy at or below the central value CNY 37.25 per share. Valuation as of 2026-10-16T07:38:08.146Z; scenarios are not confidence intervals.

Expected annual return: 20.3% at the stated quote. About 20.3% 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

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

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.19×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.20×

- FY2017: 0.25×

- FY2018: 0.24×

- FY2019: 0.20×

- FY2020: 0.20×

- FY2021: 0.18×

- FY2022: 0.16×

- FY2023: 0.17×

- FY2024: 0.15×

- FY2025: 0.13×

### moat: pass

- ROIC, median of available years: 18.9%

- ROIC, second-lowest year: 13.8%

- Typical minus recent gross margin: 2.9 pp

- Typical gross margin (annual median): 31.7%

- Recent gross margin (lower of latest and 3-year median): 28.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 7.6%

- ROIC including acquisitions, ten-year median: 17.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 13.6%

- FY2017: 20.5%

- FY2018: 20.9%

- FY2019: 13.8%

- FY2020: 19.0%

- FY2021: 18.8%

- FY2022: 17.6%

- FY2023: 20.0%

- FY2024: 20.6%

- FY2025: 13.8%

### economics: pass

- Owner earnings / net income, 5-yr: 0.96×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 16B

- Net income, five-year total: CNY 17B

- Return on incremental invested capital: 18.4%

- Working capital / revenue, annual change: 1.1 pp

- Working capital / revenue, change between three-year averages: 7.7 pp

- Working capital / revenue, final three-year average: 14.8%

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

- FY2021: 0.99×

- FY2022: 0.82×

- FY2023: 0.99×

- FY2024: 0.99×

- FY2025: 0.97×

### 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: 20.5% vs 20.0%

- Per-share earnings: 0.83 to 2.09 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 1.8%

- Ordinary dilution, 5-year annual growth: 0.0%

- Market cap gain: CNY 28B

- Cumulative retained earnings: CNY 17B

- Diluted shares, 10-year annual growth: 1.8%

- Diluted shares, 5-year annual growth: 0.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 12.3%

- Per-share value change: CNY 1.26

- Per-share value, starting three-year median: CNY 0.83

- Per-share value, ending three-year median: CNY 2.09

- Buyback history: 0 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 4.6B

- Cumulative net income, 10 years: CNY 26B

- ROIC, first three-year median: 20.5%

- ROIC, last three-year median: 20.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.83

- FY2017: CNY 1.31

- FY2018: CNY 1.46

- FY2019: CNY 0.26

- FY2020: CNY 1.69

- FY2021: CNY 2.08

- FY2022: CNY 1.86

- FY2023: CNY 2.09

- FY2024: CNY 2.16

- FY2025: CNY 1.72

### accounting: pass

- Sloan accruals: -3.6%

- Receivables to sales index (DSRI): 1.13×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.7%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.45×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.22×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.7%

- FY2017: -1.9%

- FY2018: -1.8%

- FY2019: -7.2%

- FY2020: 4.5%

- FY2021: -1.2%

- FY2022: -1.8%

- FY2023: -3.9%

- FY2024: -4.2%

- FY2025: -3.6%

## Holders

## Price story

Down 55% since Dec 2021 · sales -2.1%

Story as of 2026-10-16T10:00:09.760Z; price observation 2026-10-15.

Price needs cash profits to shrink 6.7% a year for ten years

### Sales · FY2024–2025

sales -2.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 8.2B 

- FY2017: CNY 11B 

- FY2018: CNY 13B 

- FY2019: CNY 13B 

- FY2020: CNY 17B 

- FY2021: CNY 21B 

- FY2022: CNY 20B 

- FY2023: CNY 22B 

- FY2024: CNY 26B 

- FY2025: CNY 25B 

### Gross margin · FY2025

gross margin 28.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 34.1% 

- FY2017: 37.1% 

- FY2018: 35.2% 

- FY2019: 31.7% 

- FY2020: 33.6% 

- FY2021: 31.7% 

- FY2022: 29.1% 

- FY2023: 29.8% 

- FY2024: 29.8% 

- FY2025: 28.8% 

## Owner memo

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

### How it makes money

Operates in building products & equipment; annual sales are CNY 25.3 billion.

- Source: https://pdf.dfcfw.com/pdf/H2_AN202603251820748841_1.pdf (filed 2026-10-16T07:38:08.146Z); FY2025: revenue 25280261918.22; grossProfit 7284489842.86; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 000786.SHE: Beijing New Building Materials Public Limited Company, together with its subsidiaries, manufactures and sells building materials in China. It operates through Light Building Material, Water-Proof Building Material, and Coatings and Building Material divisions. The company offers gypsum board products, such as fire-resistant, water-resistant, formaldehyde-removal, anti-cracking and anti-sagging, perforated, and phase-change gypsum boards; multifunctional, mineral wool, and fiber cement boards; light steel and T-grid studs; internal and exterior paintings; joint compound gypsum, binders, leveling putty, putty powder, and self-leveling gypsum; insulating materials, such as rock wool board and felt, and granulated wool; waterproof materials; flooring products, including commercial heterogeneous vinyl sheets, special and sports flooring, vinyl planks, homogeneous vinyl flooring, and ninyl composition tiles; and ceiling and partition accessories, as well as special tools, keels, and architectural and industrial coatings. It also provides interior wall systems, such as ordinary partition, fire- and water-resistant, sound absorption, CH stud shaft, and veneer wall systems; standard, functional, and decorative ceiling systems; and exterior wall systems. In addition, the company engages in the manufacturing and sale of mortar, architectural hardware, and paint; import and export of building materials; wastewater treatment; environmental protection technology consulting; waterproofing construction; and new material technology promotion services. Its products are used in public buildings, home decorations, renovation, subway tunnels, and industrial buildings. Beijing New Building Materials Public Limited Company was founded in 1979 and is based in Beijing, China.

### Why customers stay

Margins ranged from 28.8% to 29.8% during 2023–25; it earns 18.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:08.146Z); FY2023: grossProfit / revenue = 29.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:08.146Z); FY2024: grossProfit / revenue = 29.8%.

- Source: https://pdf.dfcfw.com/pdf/H2_AN202603251820748841_1.pdf (filed 2026-10-16T07:38:08.146Z); FY2025: grossProfit / revenue = 28.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:08.146Z); 10-year return on capital observations [[2016,0.135965296347064],[2017,0.20537681574114897],[2018,0.20899399212198336],[2019,0.13843874034472228],[2020,0.19023648766688922],[2021,0.18837160608278705],[2022,0.1756451470148169],[2023,0.19989167517214507],[2024,0.20610288943131028],[2025,0.13846768549421018]]; median 0.18930404687483815. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:08.146Z); FY2016: growth capex 208733469; upkeep 404160081; owner earnings 1171068651. Growth capex / owner earnings = 0.17824187234604746.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:08.146Z); FY2017: growth capex 446442655; upkeep 441248574; owner earnings 2343985440. Growth capex / owner earnings = 0.19046306661358783.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:08.146Z); FY2018: growth capex 1092732290; upkeep 472521964; owner earnings 2465980212. Growth capex / owner earnings = 0.44312289477528055.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:08.146Z); FY2020: growth capex 778769708; upkeep 588071613; owner earnings 2861439667. Growth capex / owner earnings = 0.2721601007287637.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:08.146Z); FY2021: growth capex 921040706; upkeep 706886262; owner earnings 3482830262.878. Growth capex / owner earnings = 0.2644517925024884.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:08.146Z); FY2022: growth capex 0; upkeep 1300887079; owner earnings 2586554682.7. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:08.146Z); FY2023: growth capex 333661212; upkeep 828647187; owner earnings 3492543508.834. Growth capex / owner earnings = 0.09553530576098511.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:08.146Z); FY2024: growth capex 172668874; upkeep 1021370000; owner earnings 3617196042.684. Growth capex / owner earnings = 0.04773555869310245.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:08.146Z); FY2025: growth capex 0; upkeep 1192476187; owner earnings 2804952972.206. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:08.146Z); Dividend observations: [[2016,352075105],[2017,389315027],[2018,696824575],[2019,777173607],[2020,139539643],[2021,930904375],[2022,1106764750],[2023,1106627636],[2024,1481468557],[2025,1461424283]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 44.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 000786.SHE SharesStats.PercentInsiders = 44.318999999999996 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 6.7% yearly over ten years; actual growth was 18.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:08.146Z); Ten-year compound average after fade. Initial solved rate -0.10676792547386077. Price 16; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.30465172802881557 → FY2025 1.6585546740959336. Closing-price date 2026-10-15.

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

- 2016-10: CNY 10.62 per share

- 2016-11: CNY 10.94 per share

- 2016-12: CNY 10.29 per share

- 2017-01: CNY 10.85 per share

- 2017-02: CNY 11.62 per share

- 2017-03: CNY 12.39 per share

- 2017-04: CNY 15.17 per share

- 2017-05: CNY 13.51 per share

- 2017-06: CNY 15.84 per share

- 2017-07: CNY 15.30 per share

- 2017-08: CNY 16.80 per share

- 2017-09: CNY 17.19 per share

- 2017-10: CNY 23.37 per share

- 2017-11: CNY 23.26 per share

- 2017-12: CNY 22.50 per share

- 2018-01: CNY 24.73 per share

- 2018-02: CNY 23.70 per share

- 2018-03: CNY 25.18 per share

- 2018-04: CNY 22.97 per share

- 2018-05: CNY 21.34 per share

- 2018-06: CNY 18.53 per share

- 2018-07: CNY 20.50 per share

- 2018-08: CNY 18.00 per share

- 2018-09: CNY 16.59 per share

- 2018-10: CNY 13.99 per share

- 2018-11: CNY 15.37 per share

- 2018-12: CNY 13.76 per share

- 2019-01: CNY 15.75 per share

- 2019-02: CNY 18.56 per share

- 2019-03: CNY 20.15 per share

- 2019-04: CNY 18.93 per share

- 2019-05: CNY 19.22 per share

- 2019-06: CNY 18.13 per share

- 2019-07: CNY 17.98 per share

- 2019-08: CNY 18.20 per share

- 2019-09: CNY 18.00 per share

- 2019-10: CNY 18.99 per share

- 2019-11: CNY 22.32 per share

- 2019-12: CNY 25.45 per share

- 2020-01: CNY 25.71 per share

- 2020-02: CNY 25.20 per share

- 2020-03: CNY 23.64 per share

- 2020-04: CNY 25.53 per share

- 2020-05: CNY 23.09 per share

- 2020-06: CNY 21.33 per share

- 2020-07: CNY 30.80 per share

- 2020-08: CNY 32.86 per share

- 2020-09: CNY 30.79 per share

- 2020-10: CNY 34.60 per share

- 2020-11: CNY 39.00 per share

- 2020-12: CNY 40.05 per share

- 2021-01: CNY 51.15 per share

- 2021-02: CNY 48.36 per share

- 2021-03: CNY 43.16 per share

- 2021-04: CNY 46.16 per share

- 2021-05: CNY 46.00 per share

- 2021-06: CNY 39.25 per share

- 2021-07: CNY 32.45 per share

- 2021-08: CNY 33.10 per share

- 2021-09: CNY 31.95 per share

- 2021-10: CNY 28.24 per share

- 2021-11: CNY 26.65 per share

- 2021-12: CNY 35.83 per share

- 2022-01: CNY 32.35 per share

- 2022-02: CNY 29.86 per share

- 2022-03: CNY 30.31 per share

- 2022-04: CNY 29.03 per share

- 2022-05: CNY 28.90 per share

- 2022-06: CNY 34.62 per share

- 2022-07: CNY 28.76 per share

- 2022-08: CNY 26.29 per share

- 2022-09: CNY 24.05 per share

- 2022-10: CNY 19.83 per share

- 2022-11: CNY 26.24 per share

- 2022-12: CNY 25.88 per share

- 2023-01: CNY 28.55 per share

- 2023-02: CNY 30.09 per share

- 2023-03: CNY 26.84 per share

- 2023-04: CNY 26.52 per share

- 2023-05: CNY 22.73 per share

- 2023-06: CNY 24.51 per share

- 2023-07: CNY 28.33 per share

- 2023-08: CNY 29.90 per share

- 2023-09: CNY 30.05 per share

- 2023-10: CNY 24.49 per share

- 2023-11: CNY 23.36 per share

- 2023-12: CNY 23.36 per share

- 2024-01: CNY 26.71 per share

- 2024-02: CNY 28.09 per share

- 2024-03: CNY 28.37 per share

- 2024-04: CNY 32.75 per share

- 2024-05: CNY 32.32 per share

- 2024-06: CNY 29.66 per share

- 2024-07: CNY 25.99 per share

- 2024-08: CNY 25.84 per share

- 2024-09: CNY 32.98 per share

- 2024-10: CNY 31.13 per share

- 2024-11: CNY 28.52 per share

- 2024-12: CNY 30.31 per share

- 2025-01: CNY 31.28 per share

- 2025-02: CNY 28.81 per share

- 2025-03: CNY 29.10 per share

- 2025-04: CNY 28.02 per share

- 2025-05: CNY 28.67 per share

- 2025-06: CNY 26.48 per share

- 2025-07: CNY 26.09 per share

- 2025-08: CNY 26.70 per share

- 2025-09: CNY 23.66 per share

- 2025-10: CNY 23.77 per share

- 2025-11: CNY 25.31 per share

- 2025-12: CNY 24.97 per share

- 2026-01: CNY 27.90 per share

- 2026-02: CNY 27.99 per share

- 2026-03: CNY 26.08 per share

- 2026-04: CNY 25.94 per share

- 2026-05: CNY 22.90 per share

- 2026-06: CNY 18.09 per share

- 2026-07: CNY 19.28 per share

- 2026-08: CNY 16.86 per share

- 2026-09: CNY 16.60 per share

- 2026-10: CNY 16.38 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 10.02 per share, central CNY 13.55 per share, high CNY 15.70 per share

- FY2017: low CNY 11.01 per share, central CNY 15.17 per share, high CNY 17.66 per share

- FY2018: low CNY 16.15 per share, central CNY 22.37 per share, high CNY 26.00 per share

- FY2019: low CNY 16.40 per share, central CNY 23.00 per share, high CNY 26.84 per share

- FY2020: low CNY 24.15 per share, central CNY 34.01 per share, high CNY 39.76 per share

- FY2021: low CNY 30.43 per share, central CNY 42.77 per share, high CNY 49.95 per share

- FY2022: low CNY 28.24 per share, central CNY 37.91 per share, high CNY 44.04 per share

- FY2023: low CNY 30.42 per share, central CNY 40.58 per share, high CNY 47.01 per share

- FY2024: low CNY 33.70 per share, central CNY 44.54 per share, high CNY 51.67 per share

- FY2025: low CNY 30.05 per share, central CNY 39.49 per share, high CNY 45.73 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.

## Reported holder observations