# Zhejiang Dahua Technology (002236.SHE)

Canonical: https://gigainvestors.com/s/002236.SHE

Analysis as of: 2026-10-01T09:05:45.186Z. Financial observations: FY2005–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed. Published buy qualification: no.

Share price: CNY 14.83 per share; close as of 2026-10-15.

Estimated value: low CNY 15.30 per share, central CNY 20.76 per share, high CNY 23.95 per share. Buy at or below the central value CNY 20.76 per share. Valuation as of 2026-10-01T09:05:45.186Z; scenarios are not confidence intervals.

Expected annual return: 13.2% at the stated quote. About 13.2% 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: fail

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

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.36×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.11×

- FY2017: 0.14×

- FY2018: 0.11×

- FY2019: 0.13×

- FY2020: 0.16×

- FY2021: 0.11×

- FY2022: 0.07×

- FY2023: 0.25×

- FY2024: 0.09×

- FY2025: 0.13×

### moat: pass

- ROIC, median of available years: 22.2%

- ROIC, second-lowest year: 12.1%

- Typical minus recent gross margin: 0.5 pp

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.6%

- ROIC including acquisitions, ten-year median: 23.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 20.1%

- FY2017: 27.1%

- FY2018: 24.4%

- FY2019: 24.2%

- FY2020: 29.3%

- FY2021: 19.1%

- FY2022: 12.1%

- FY2023: 37.7%

- FY2024: 11.3%

- FY2025: 13.2%

### economics: pass

- Owner earnings / net income, 5-yr: 0.88×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 17B

- Net income, five-year total: CNY 20B

- Return on incremental invested capital: 22.8%

- Working capital / revenue, annual change: 0.5 pp

- Working capital / revenue, change between three-year averages: 4.8 pp

- Working capital / revenue, final three-year average: 43.4%

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

- FY2021: 0.91×

- FY2022: 0.54×

- FY2023: 0.91×

- FY2024: 0.90×

- FY2025: 0.99×

### management: fail

- $1 retained earnings test: 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 24.4% vs 13.2%

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

- Market cap gain: CNY 23B

- Cumulative retained earnings: CNY 22B

- Diluted shares, 10-year annual growth: 1.1%

- Diluted shares, 5-year annual growth: 2.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 8.0%

- Per-share value change: CNY 0.53

- Per-share value, starting three-year median: CNY 0.63

- Per-share value, ending three-year median: CNY 1.16

- Buybacks concentrated in cheaper years (correlation): 0.83

- Average buyback yield: 0.4%

- Buyback history: 6 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 576M

- Cumulative net income, 10 years: CNY 34B

- ROIC, first three-year median: 24.4%

- ROIC, last three-year median: 13.2%

### accounting: pass

- Sloan accruals: -0.1%

- Receivables to sales index (DSRI): 0.80×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.01×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.01×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 8.8%

- FY2017: 6.9%

- FY2018: 6.0%

- FY2019: 5.4%

- FY2020: -1.4%

- FY2021: 3.7%

- FY2022: 2.7%

- FY2023: 5.2%

- FY2024: 0.4%

- FY2025: -0.1%

## Holders

## Price story

Down 38% since Nov 2021 · sales +1.7%

Story as of 2026-10-03T17:10:00Z; price observation 2026-09-30.

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

### Sales · FY2024–2025

sales +1.7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-01.

- FY2016: CNY 13B 

- FY2017: CNY 19B 

- FY2018: CNY 24B 

- FY2019: CNY 26B 

- FY2020: CNY 26B 

- FY2021: CNY 33B 

- FY2022: CNY 31B 

- FY2023: CNY 32B 

- FY2024: CNY 32B 

- FY2025: CNY 33B 

### Gross margin · FY2024

gross margin 38.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-01.

- FY2016: 37.7% 

- FY2017: 38.0% 

- FY2018: 37.1% 

- FY2019: 41.0% 

- FY2020: 42.2% 

- FY2021: 38.8% 

- FY2022: 37.6% 

- FY2023: 41.1% 

- FY2024: 38.5% 

## Owner memo

Memo as of 2026-10-02T06:52:09.009Z.

### How it makes money

Operates in security & protection services; annual sales are CNY 32.7 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:05:45.186Z); FY2025: revenue 32743146000; grossProfit 32743146000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-02); 002236.SHE: Zhejiang Dahua Technology Co., Ltd. provides and operates video-centric IoT solutions. It offers network, high-definition composite video interface (HDCVI), PT, PTZ, thermal, explosion-proof, and anti-corrosion cameras; IP storage products; network and HDCVI recorders; video intercoms; and access control products, including modules, turnstiles, accessories, AI, and time attendance solutions. The company also provides alarms; fire alarm; intelligent traffic and smart parking; EV charger; mobile, MPT, and dash camera; transmission; display and control; interactive whiteboards; video conferencing; video server, video surveillance server, and video device; metal detector, security screening machine, bollard, ESL, EAS, and software; and camera accessories, power, cabling, detector, and solar power. In addition, it offers internal SSD, memory card, USB flash drives, external storage, memory module, and DRAM; HDCVI kit; drone; audio and sensing; and project exclusive products. It provides solutions for transportation, critical infrastructure, traffic, banking and finance, building, retail, culture, education, and healthcare. The company was founded in 2002 and is headquartered in Hangzhou, China.

### Why customers stay

Margins ranged from 38.5% to 100% during 2023–25; it earns 22.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:05:45.186Z); FY2023: grossProfit / revenue = 41.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:05:45.186Z); FY2024: grossProfit / revenue = 38.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:05:45.186Z); FY2025: grossProfit / revenue = 100%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:05:45.186Z); 10-year return on capital observations [[2016,0.2013284943318015],[2017,0.270502453009354],[2018,0.2435099899910254],[2019,0.24172966227345433],[2020,0.29270049558308575],[2021,0.19115459359157605],[2022,0.12053510434907323],[2023,0.37702608387968345],[2024,0.11314285947369325],[2025,0.13204028860267228]]; median 0.2215290783026279. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 1.1% of cash earnings on expansion; earns 22.8% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:05:45.186Z); FY2016: growth capex 305540035.15722895; upkeep 258773758.84277105; owner earnings 1684600241.157229. Growth capex / owner earnings = 0.18137242753054547.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:05:45.186Z); FY2017: growth capex 125554595; upkeep 162255528; owner earnings 2378726822. Growth capex / owner earnings = 0.052782267319975595.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:05:45.186Z); FY2018: growth capex 322282384; upkeep 229838957; owner earnings 2529426471. Growth capex / owner earnings = 0.1274132249721364.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:05:45.186Z); FY2019: growth capex 180579932.36375797; upkeep 350517601.63624203; owner earnings 3116343782.363758. Growth capex / owner earnings = 0.0579460884212163.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:05:45.186Z); FY2020: growth capex 24940705.69809568; upkeep 616779050.3019043; owner earnings 3594998730.698096. Growth capex / owner earnings = 0.0069376118230930674.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:05:45.186Z); FY2021: growth capex 579997606.84268; upkeep 647451804.15732; owner earnings 3067211265.97668. Growth capex / owner earnings = 0.18909607345159307.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:05:45.186Z); FY2022: growth capex 0; upkeep 1295439929; owner earnings 1254046554.146. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:05:45.186Z); FY2023: growth capex 227052253.92692423; upkeep 1218865570.0730758; owner earnings 6717333420.012924. Growth capex / owner earnings = 0.03380095042632071.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:05:45.186Z); FY2024: growth capex 0; upkeep 907507733; owner earnings 2605381505.518. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:05:45.186Z); FY2025: growth capex 43205356.899999976; upkeep 630023000; owner earnings 3821381165.27. Growth capex / owner earnings = 0.011306214960356433.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:05:45.186Z); Incremental return on capital 0.22778247654359238, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:05:45.186Z); Dividend observations: [[2016,266838038.3],[2017,356585882],[2018,693036283],[2019,299761669],[2020,449568123],[2021,885055753],[2022,910569303],[2023,1867276395],[2024,1883051409],[2025,2097667033.56]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 49.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-02); 002236.SHE SharesStats.PercentInsiders = 49.534 percentage points; cache date 2026-10-02.

### What the price says

The price assumes cash profits grow 2% yearly over ten years; actual growth was 9.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T09:05:45.186Z); Ten-year compound average after fade. Initial solved rate 0.01618702554957418. Price 15.32; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.4607782663275877 → FY2025 1.1457310813933004. Closing-price date 2026-09-30.

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

- 2016-09: CNY 15.51 per share

- 2016-10: CNY 14.62 per share

- 2016-11: CNY 14.31 per share

- 2016-12: CNY 13.68 per share

- 2017-01: CNY 13.70 per share

- 2017-02: CNY 15.32 per share

- 2017-03: CNY 15.97 per share

- 2017-04: CNY 18.40 per share

- 2017-05: CNY 18.70 per share

- 2017-06: CNY 22.81 per share

- 2017-07: CNY 24.08 per share

- 2017-08: CNY 24.63 per share

- 2017-09: CNY 24.07 per share

- 2017-10: CNY 27.75 per share

- 2017-11: CNY 24.34 per share

- 2017-12: CNY 23.09 per share

- 2018-01: CNY 26.27 per share

- 2018-02: CNY 28.90 per share

- 2018-03: CNY 25.62 per share

- 2018-04: CNY 22.50 per share

- 2018-05: CNY 24.25 per share

- 2018-06: CNY 22.55 per share

- 2018-07: CNY 18.79 per share

- 2018-08: CNY 15.55 per share

- 2018-09: CNY 14.77 per share

- 2018-10: CNY 11.51 per share

- 2018-11: CNY 13.34 per share

- 2018-12: CNY 11.46 per share

- 2019-01: CNY 12.36 per share

- 2019-02: CNY 15.83 per share

- 2019-03: CNY 16.42 per share

- 2019-04: CNY 16.52 per share

- 2019-05: CNY 12.52 per share

- 2019-06: CNY 14.52 per share

- 2019-07: CNY 16.15 per share

- 2019-08: CNY 16.06 per share

- 2019-09: CNY 17.27 per share

- 2019-10: CNY 16.12 per share

- 2019-11: CNY 16.94 per share

- 2019-12: CNY 19.88 per share

- 2020-01: CNY 20.13 per share

- 2020-02: CNY 19.38 per share

- 2020-03: CNY 16.16 per share

- 2020-04: CNY 16.88 per share

- 2020-05: CNY 14.89 per share

- 2020-06: CNY 19.20 per share

- 2020-07: CNY 21.28 per share

- 2020-08: CNY 22.94 per share

- 2020-09: CNY 20.50 per share

- 2020-10: CNY 22.62 per share

- 2020-11: CNY 20.89 per share

- 2020-12: CNY 19.89 per share

- 2021-01: CNY 24.38 per share

- 2021-02: CNY 20.95 per share

- 2021-03: CNY 24.67 per share

- 2021-04: CNY 23.46 per share

- 2021-05: CNY 23.13 per share

- 2021-06: CNY 21.10 per share

- 2021-07: CNY 21.13 per share

- 2021-08: CNY 23.02 per share

- 2021-09: CNY 23.72 per share

- 2021-10: CNY 21.78 per share

- 2021-11: CNY 24.55 per share

- 2021-12: CNY 23.48 per share

- 2022-01: CNY 19.08 per share

- 2022-02: CNY 18.70 per share

- 2022-03: CNY 16.55 per share

- 2022-04: CNY 16.72 per share

- 2022-05: CNY 16.17 per share

- 2022-06: CNY 16.42 per share

- 2022-07: CNY 14.81 per share

- 2022-08: CNY 14.74 per share

- 2022-09: CNY 12.85 per share

- 2022-10: CNY 11.58 per share

- 2022-11: CNY 11.88 per share

- 2022-12: CNY 11.31 per share

- 2023-01: CNY 12.65 per share

- 2023-02: CNY 14.50 per share

- 2023-03: CNY 22.61 per share

- 2023-04: CNY 23.47 per share

- 2023-05: CNY 19.84 per share

- 2023-06: CNY 19.75 per share

- 2023-07: CNY 21.95 per share

- 2023-08: CNY 21.58 per share

- 2023-09: CNY 22.27 per share

- 2023-10: CNY 20.40 per share

- 2023-11: CNY 19.33 per share

- 2023-12: CNY 18.45 per share

- 2024-01: CNY 15.54 per share

- 2024-02: CNY 18.51 per share

- 2024-03: CNY 18.90 per share

- 2024-04: CNY 17.99 per share

- 2024-05: CNY 16.39 per share

- 2024-06: CNY 15.46 per share

- 2024-07: CNY 15.00 per share

- 2024-08: CNY 13.72 per share

- 2024-09: CNY 17.22 per share

- 2024-10: CNY 16.44 per share

- 2024-11: CNY 16.33 per share

- 2024-12: CNY 16.00 per share

- 2025-01: CNY 15.15 per share

- 2025-02: CNY 16.44 per share

- 2025-03: CNY 17.02 per share

- 2025-04: CNY 15.72 per share

- 2025-05: CNY 15.24 per share

- 2025-06: CNY 15.88 per share

- 2025-07: CNY 16.26 per share

- 2025-08: CNY 19.42 per share

- 2025-09: CNY 20.15 per share

- 2025-10: CNY 20.45 per share

- 2025-11: CNY 18.94 per share

- 2025-12: CNY 18.94 per share

- 2026-01: CNY 18.96 per share

- 2026-02: CNY 19.26 per share

- 2026-03: CNY 16.85 per share

- 2026-04: CNY 18.49 per share

- 2026-05: CNY 16.69 per share

- 2026-06: CNY 16.49 per share

- 2026-07: CNY 16.72 per share

- 2026-08: CNY 16.42 per share

- 2026-09: CNY 15.23 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 6.55 per share, central CNY 9.16 per share, high CNY 10.61 per share

- FY2017: low CNY 7.90 per share, central CNY 11.01 per share, high CNY 12.75 per share

- FY2018: low CNY 9.57 per share, central CNY 13.38 per share, high CNY 15.51 per share

- FY2019: low CNY 13.28 per share, central CNY 18.96 per share, high CNY 22.12 per share

- FY2020: low CNY 14.56 per share, central CNY 20.17 per share, high CNY 23.31 per share

- FY2021: low CNY 18.01 per share, central CNY 25.14 per share, high CNY 29.12 per share

- FY2022: low CNY 8.24 per share, central CNY 10.21 per share, high CNY 11.52 per share

- FY2023: low CNY 17.63 per share, central CNY 23.18 per share, high CNY 26.41 per share

- FY2024: low CNY 12.56 per share, central CNY 13.81 per share, high CNY 15.48 per share

- FY2025: low CNY 14.99 per share, central CNY 20.35 per share, high CNY 23.47 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.