# Unisplendour (000938.SHE)

Canonical: https://gigainvestors.com/s/000938.SHE

Analysis as of: 2026-10-16T07:35:43.707Z. Financial observations: FY2016–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 25.77 per share; close as of 2026-10-15.

Estimated value: low CNY 11.49 per share, central CNY 12.89 per share, high CNY 14.75 per share. Buy at or below the central value CNY 12.89 per share. Valuation as of 2026-10-16T07:35:43.707Z; scenarios are not confidence intervals.

Expected annual return: 6.2% at the stated quote. About 6.2% 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

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

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.27×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.03×

- FY2017: 0.07×

- FY2018: 0.07×

- FY2019: 0.07×

- FY2020: 0.06×

- FY2021: 0.06×

- FY2022: 0.06×

- FY2023: 0.05×

- FY2024: 0.03×

- FY2025: 0.04×

### moat: fail

- Recent gross margin fell 4.3pp below the typical margin (limit 4pp)

- ROIC, median of available years: 34.3%

- ROIC, second-lowest year: 22.2%

- Typical minus recent gross margin: 4.3 pp

- Typical gross margin (annual median): 18.9%

- Recent gross margin (lower of latest and 3-year median): 14.6%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.0%

- ROIC including acquisitions, ten-year median: 5.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 33.9%

- FY2017: 23.6%

- FY2018: 55.3%

- FY2019: 36.8%

- FY2020: 46.9%

- FY2021: 34.7%

- FY2022: 33.1%

- FY2023: 20.7%

- FY2024: 22.2%

- FY2025: 37.6%

### economics: fail

- incremental invested capital return below threshold

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

- Owner earnings / net income, 5-yr: 0.95×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 9.2B

- Net income, five-year total: CNY 9.7B

- Return on incremental invested capital: 8.9%

- Working capital / revenue, annual change: 2.8 pp

- Working capital / revenue, change between three-year averages: 20.5 pp

- Working capital / revenue, final three-year average: 39.4%

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

- FY2021: 0.97×

- FY2022: 0.97×

- FY2023: 0.87×

- FY2024: 0.90×

- FY2025: 1.05×

### 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: 33.9% vs 22.2%

- Per-share earnings: 0.55 to 0.59 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

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

- Market cap gain: CNY -94B

- Cumulative retained earnings: CNY 11B

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

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 1.0%

- Per-share value change: CNY 0.04

- Per-share value, starting three-year median: CNY 0.55

- Per-share value, ending three-year median: CNY 0.59

- Buyback history: 0 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 18B

- Cumulative net income, 10 years: CNY 17B

- ROIC, first three-year median: 33.9%

- ROIC, last three-year median: 22.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.28

- FY2017: CNY 0.55

- FY2018: CNY 0.60

- FY2019: CNY 0.64

- FY2020: CNY 0.63

- FY2021: CNY 0.75

- FY2022: CNY 0.75

- FY2023: CNY 0.74

- FY2024: CNY 0.55

- FY2025: CNY 0.59

### accounting: pass

- Sloan accruals: -1.9%

- Receivables to sales index (DSRI): 0.60×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.07×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.21×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -1.3%

- FY2017: 3.0%

- FY2018: -6.5%

- FY2019: 0.3%

- FY2020: -5.5%

- FY2021: 6.5%

- FY2022: -2.5%

- FY2023: 4.5%

- FY2024: -1.0%

- FY2025: -1.9%

## Holders

## Price story

Down 34% since Aug 2026 · sales +22.4%

Story as of 2026-10-16T10:00:05.929Z; price observation 2026-10-15.

Price needs cash profits to grow 10.3% a year for ten years

### Sales · FY2024–2025

sales +22.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 28B 

- FY2017: CNY 39B 

- FY2018: CNY 48B 

- FY2019: CNY 54B 

- FY2020: CNY 60B 

- FY2021: CNY 68B 

- FY2022: CNY 74B 

- FY2023: CNY 77B 

- FY2024: CNY 79B 

- FY2025: CNY 97B 

### Gross margin · FY2025

gross margin 14.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 18.2% 

- FY2017: 21.2% 

- FY2018: 20.4% 

- FY2019: 20.5% 

- FY2020: 18.9% 

- FY2021: 18.6% 

- FY2022: 20.0% 

- FY2023: 18.8% 

- FY2024: 16.4% 

- FY2025: 14.6% 

## Owner memo

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

### How it makes money

Operates in electronics & computer distribution; annual sales are CNY 96.7 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:43.707Z); FY2025: revenue 96748339344.03; grossProfit 14116492725.64; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 000938.SHE: Unisplendour Corporation Limited, a technology company, provides digital and artificial intelligence solutions in China and internationally. The company operates through Digital Business, Distribution Business, and Others segments. It provides a full stack of intelligent information and communication infrastructure, including networks, computing, storage, cloud computing, security, and smart terminals, as well as cloud and intelligent platforms, and solutions for digital transformation and intelligent upgrading. The company offers network equipment, including switches, routers, WLAN, SDN, PON, intelligent management and maintenance services; servers comprising general, artificial intelligence, mission-critical, and edge computing servers; and storage products, such as enterprise-grade intelligent all-flash storage, enterprise-grade intelligent hybrid flash storage, distributed storage, data backup and protection, and storage network equipment. It also provides cloud and intelligence products and services that include cloud operating system, virtualization platform, hyper-convergence products, big data platform, and database; proactive security solutions, which consists of firewall, video gateways, anti-DDos, application security, data security, password security products, industrial control security, endpoint security, security management, security testing and auditing, and cloud security; and smart terminals that comprises commercial laptops, commercial desktops, smart cloud screens, and AI workstations. It serves government, telecommunications operators, internet, finance, education, healthcare, agriculture, transportation, energy, manufacturing, and other industries. Unisplendour Corporation Limited was founded in 1999 and is headquartered in Beijing, China.

### Why customers stay

Margins ranged from 14.6% to 18.8% during 2023–25; it earns 34.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:43.707Z); FY2023: grossProfit / revenue = 18.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:43.707Z); FY2024: grossProfit / revenue = 16.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:43.707Z); FY2025: grossProfit / revenue = 14.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:43.707Z); 10-year return on capital observations [[2016,0.33898457030006635],[2017,0.2364402195449002],[2018,0.5531091048347818],[2019,0.36773578212927077],[2020,0.4688372335422267],[2021,0.34681515909993105],[2022,0.33070732297849803],[2023,0.2074908231730922],[2024,0.22225730861266602],[2025,0.3763512141958273]]; median 0.34289986469999867. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 20% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:43.707Z); Gross margin observations: [[2021,0.18605194964293423],[2022,0.20022844635535217],[2023,0.1883241009113555]]; 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 2026-10-16T07:35:43.707Z); FY2016: growth capex 0; upkeep 196705626; owner earnings 769495244. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:43.707Z); FY2018: growth capex 123385632.70642614; upkeep 1646215203.2935739; owner earnings 355214796.70642614. Growth capex / owner earnings = 0.34735499154445554.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:43.707Z); FY2019: growth capex 73273623.69116735; upkeep 1814744103.3088326; owner earnings 346594896.69116735. Growth capex / owner earnings = 0.2114099901374418.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:43.707Z); FY2020: growth capex 98272239.27344346; upkeep 1496685961.7265565; owner earnings 832486038.2734435. Growth capex / owner earnings = 0.11804671160282493.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:43.707Z); FY2021: growth capex 0; upkeep 526827163; owner earnings 2087327156.468. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:43.707Z); FY2022: growth capex 0; upkeep 482798694; owner earnings 2102173114.928937. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:43.707Z); FY2023: growth capex 87938357.10937428; upkeep 852629409.8906257; owner earnings 1820677729.3030617. Growth capex / owner earnings = 0.04829979281563259.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:43.707Z); FY2024: growth capex 20560650; upkeep 512953000; owner earnings 1412533611.7722366. Growth capex / owner earnings = 0.014555866018794102.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:43.707Z); FY2025: growth capex 0; upkeep 613134434.68; owner earnings 1767957319.2968616. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:43.707Z); Dividend observations: [[2016,65304518],[2017,209040846.6],[2018,391106309],[2019,542505964],[2020,543682902],[2021,286007987],[2022,462444929],[2023,171807072],[2024,902517062.5],[2025,940986681.1]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 29.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 000938.SHE SharesStats.PercentInsiders = 29.94 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 10.3% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:43.707Z); Ten-year compound average after fade. Initial solved rate 0.13551706413299203. Price 25.77; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

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

- 2016-10: CNY 61.60 per share

- 2016-11: CNY 63.50 per share

- 2016-12: CNY 57.39 per share

- 2017-01: CNY 54.56 per share

- 2017-02: CNY 56.25 per share

- 2017-03: CNY 56.89 per share

- 2017-04: CNY 52.15 per share

- 2017-05: CNY 52.33 per share

- 2017-06: CNY 61.12 per share

- 2017-07: CNY 55.05 per share

- 2017-08: CNY 58.16 per share

- 2017-09: CNY 61.50 per share

- 2017-10: CNY 63.16 per share

- 2017-11: CNY 66.83 per share

- 2017-12: CNY 72.03 per share

- 2018-01: CNY 60.56 per share

- 2018-02: CNY 60.50 per share

- 2018-03: CNY 72.85 per share

- 2018-04: CNY 72.02 per share

- 2018-05: CNY 67.30 per share

- 2018-06: CNY 62.60 per share

- 2018-07: CNY 48.05 per share

- 2018-08: CNY 45.00 per share

- 2018-09: CNY 42.13 per share

- 2018-10: CNY 33.19 per share

- 2018-11: CNY 34.97 per share

- 2018-12: CNY 31.26 per share

- 2019-01: CNY 30.64 per share

- 2019-02: CNY 39.48 per share

- 2019-03: CNY 43.59 per share

- 2019-04: CNY 40.73 per share

- 2019-05: CNY 28.31 per share

- 2019-06: CNY 27.25 per share

- 2019-07: CNY 32.35 per share

- 2019-08: CNY 33.13 per share

- 2019-09: CNY 31.48 per share

- 2019-10: CNY 29.42 per share

- 2019-11: CNY 27.05 per share

- 2019-12: CNY 31.60 per share

- 2020-01: CNY 33.05 per share

- 2020-02: CNY 45.42 per share

- 2020-03: CNY 35.36 per share

- 2020-04: CNY 41.69 per share

- 2020-05: CNY 38.00 per share

- 2020-06: CNY 42.95 per share

- 2020-07: CNY 43.79 per share

- 2020-08: CNY 32.81 per share

- 2020-09: CNY 25.42 per share

- 2020-10: CNY 22.02 per share

- 2020-11: CNY 22.36 per share

- 2020-12: CNY 20.45 per share

- 2021-01: CNY 20.58 per share

- 2021-02: CNY 21.49 per share

- 2021-03: CNY 19.84 per share

- 2021-04: CNY 18.27 per share

- 2021-05: CNY 20.16 per share

- 2021-06: CNY 21.88 per share

- 2021-07: CNY 26.36 per share

- 2021-08: CNY 23.75 per share

- 2021-09: CNY 24.94 per share

- 2021-10: CNY 27.72 per share

- 2021-11: CNY 25.86 per share

- 2021-12: CNY 22.85 per share

- 2022-01: CNY 21.07 per share

- 2022-02: CNY 21.99 per share

- 2022-03: CNY 19.55 per share

- 2022-04: CNY 17.00 per share

- 2022-05: CNY 17.80 per share

- 2022-06: CNY 19.40 per share

- 2022-07: CNY 18.57 per share

- 2022-08: CNY 17.30 per share

- 2022-09: CNY 15.86 per share

- 2022-10: CNY 17.15 per share

- 2022-11: CNY 18.88 per share

- 2022-12: CNY 19.51 per share

- 2023-01: CNY 23.00 per share

- 2023-02: CNY 25.40 per share

- 2023-03: CNY 29.29 per share

- 2023-04: CNY 29.63 per share

- 2023-05: CNY 32.62 per share

- 2023-06: CNY 31.85 per share

- 2023-07: CNY 27.28 per share

- 2023-08: CNY 26.93 per share

- 2023-09: CNY 23.57 per share

- 2023-10: CNY 19.61 per share

- 2023-11: CNY 20.21 per share

- 2023-12: CNY 19.35 per share

- 2024-01: CNY 15.56 per share

- 2024-02: CNY 22.10 per share

- 2024-03: CNY 21.71 per share

- 2024-04: CNY 20.95 per share

- 2024-05: CNY 22.02 per share

- 2024-06: CNY 22.35 per share

- 2024-07: CNY 23.15 per share

- 2024-08: CNY 19.74 per share

- 2024-09: CNY 24.14 per share

- 2024-10: CNY 26.25 per share

- 2024-11: CNY 25.35 per share

- 2024-12: CNY 27.83 per share

- 2025-01: CNY 25.18 per share

- 2025-02: CNY 29.56 per share

- 2025-03: CNY 27.42 per share

- 2025-04: CNY 25.14 per share

- 2025-05: CNY 24.03 per share

- 2025-06: CNY 23.99 per share

- 2025-07: CNY 24.73 per share

- 2025-08: CNY 27.90 per share

- 2025-09: CNY 30.18 per share

- 2025-10: CNY 27.08 per share

- 2025-11: CNY 24.92 per share

- 2025-12: CNY 24.60 per share

- 2026-01: CNY 25.02 per share

- 2026-02: CNY 25.95 per share

- 2026-03: CNY 24.90 per share

- 2026-04: CNY 31.99 per share

- 2026-05: CNY 28.64 per share

- 2026-06: CNY 28.86 per share

- 2026-07: CNY 34.89 per share

- 2026-08: CNY 38.95 per share

- 2026-09: CNY 31.02 per share

- 2026-10: CNY 27.96 per share

## Annual estimated value (CNY per share)

- FY2020: low CNY 5.28 per share, central CNY 5.52 per share, high CNY 5.83 per share

- FY2021: low CNY 4.95 per share, central CNY 5.21 per share, high CNY 5.56 per share

- FY2022: low CNY 6.06 per share, central CNY 6.60 per share, high CNY 7.32 per share

- FY2023: low CNY 9.65 per share, central CNY 10.61 per share, high CNY 11.88 per share

- FY2024: low CNY 8.82 per share, central CNY 9.80 per share, high CNY 11.11 per share

- FY2025: low CNY 10.65 per share, central CNY 11.85 per share, high CNY 13.45 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