# 37 Interactive Entertainment Network Technology Group (002555.SHE)

Canonical: https://gigainvestors.com/s/002555.SHE

Analysis as of: 2026-10-16T07:37:09.607Z. Financial observations: FY2007–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 17.27 per share; close as of 2026-10-15.

Estimated value: low CNY 15.57 per share, central CNY 17.34 per share, high CNY 19.69 per share. Buy at or below the central value CNY 17.34 per share. Valuation as of 2026-10-16T07:37:09.607Z; scenarios are not confidence intervals.

Expected annual return: 10.0% at the stated quote. About 10.0% 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

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.19×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.22×

- FY2017: 0.25×

- FY2018: 0.10×

- FY2019: 0.20×

- FY2020: 0.23×

- FY2021: 0.20×

- FY2022: 0.20×

- FY2023: 0.18×

- FY2024: 0.18×

- FY2025: 0.19×

### moat: pass

- ROIC, median of available years: 50.3%

- ROIC, second-lowest year: 30.9%

- Typical minus recent gross margin: 3.2 pp

- Typical gross margin (annual median): 79.1%

- Recent gross margin (lower of latest and 3-year median): 75.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.6%

- ROIC including acquisitions, ten-year median: 26.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 45.8%

- FY2017: 41.6%

- FY2018: 22.6%

- FY2019: >100%

- FY2020: >100%

- FY2021: 96.2%

- FY2022: 74.5%

- FY2023: 54.8%

- FY2024: 39.9%

- FY2025: 30.9%

### economics: pass

- Owner earnings / net income, 5-yr: 0.84×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 12B

- Net income, five-year total: CNY 14B

- Return on incremental invested capital: 46.7%

- Working capital / revenue, annual change: -2.3 pp

- Working capital / revenue, change between three-year averages: -18.7 pp

- Working capital / revenue, final three-year average: -7.9%

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

- FY2021: 0.94×

- FY2022: 0.92×

- FY2023: 0.54×

- FY2024: 0.84×

- FY2025: 0.92×

### 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: 41.6% vs 39.9%

- Per-share earnings: 0.51 to 1.21 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.5%

- Ordinary dilution, 5-year annual growth: 1.1%

- Market cap gain: CNY 18B

- Cumulative retained earnings: CNY 7.2B

- Diluted shares, 10-year annual growth: 0.5%

- Diluted shares, 5-year annual growth: 1.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 11.3%

- Per-share value change: CNY 0.70

- Per-share value, starting three-year median: CNY 0.51

- Per-share value, ending three-year median: CNY 1.21

- Buybacks concentrated in cheaper years (correlation): -0.46

- Average buyback yield: 0.4%

- Buyback history: 7 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 2.9B

- Cumulative net income, 10 years: CNY 23B

- ROIC, first three-year median: 41.6%

- ROIC, last three-year median: 39.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.51

- FY2017: CNY 0.75

- FY2018: CNY 0.48

- FY2019: CNY 1.01

- FY2020: CNY 1.33

- FY2021: CNY 1.32

- FY2022: CNY 1.34

- FY2023: CNY 1.20

- FY2024: CNY 1.21

- FY2025: CNY 1.32

### accounting: pass

- Sloan accruals: -2.9%

- Receivables to sales index (DSRI): 0.98×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.22×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.22×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 0.3%

- FY2017: -2.3%

- FY2018: -11.2%

- FY2019: -11.3%

- FY2020: -1.6%

- FY2021: -5.4%

- FY2022: -3.5%

- FY2023: -2.6%

- FY2024: -1.7%

- FY2025: -2.9%

## Holders

## Price story

Down 50% since Jun 2023 · sales -8.5%

Story as of 2026-10-16T10:00:08.753Z; price observation 2026-10-15.

Price needs cash profits to grow 1.4% a year for ten years

### Sales · FY2024–2025

sales -8.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 5.2B 

- FY2017: CNY 6.2B 

- FY2018: CNY 7.6B 

- FY2019: CNY 13B 

- FY2020: CNY 14B 

- FY2021: CNY 16B 

- FY2022: CNY 16B 

- FY2023: CNY 17B 

- FY2024: CNY 17B 

- FY2025: CNY 16B 

### Gross margin · FY2025

gross margin 75.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 63.0% 

- FY2017: 68.5% 

- FY2018: 76.2% 

- FY2019: 86.6% 

- FY2020: 87.8% 

- FY2021: 84.8% 

- FY2022: 81.4% 

- FY2023: 79.5% 

- FY2024: 78.6% 

- FY2025: 75.9% 

## Owner memo

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

### How it makes money

Operates in electronic gaming & multimedia; annual sales are CNY 16 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:09.607Z); FY2025: revenue 15965709257.73; grossProfit 12111409267.22; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 75.9% to 79.5% during 2023–25; it earns 50.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:09.607Z); FY2023: grossProfit / revenue = 79.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:09.607Z); FY2024: grossProfit / revenue = 78.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:09.607Z); FY2025: grossProfit / revenue = 75.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:09.607Z); 10-year return on capital observations [[2016,0.4576179094881587],[2017,0.416045306979304],[2018,0.22649057565898476],[2019,1.63057192686812],[2020,1.3263818895146506],[2021,0.9622710683207193],[2022,0.745211651399382],[2023,0.5483214997206757],[2024,0.3985578719643818],[2025,0.309027190917963]]; median 0.5029697046044173. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back CNY 214.4 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:09.607Z); FY2016: growth capex 138403844; upkeep 70823156; owner earnings 1070162327. Growth capex / owner earnings = 0.12932976662333956.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:09.607Z); FY2017: growth capex 378821173.2789624; upkeep 639999826.7210376; owner earnings 1054579585.2789624. Growth capex / owner earnings = 0.35921534853033854.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:09.607Z); FY2018: growth capex 218588455.08442178; upkeep 105895544.91557822; owner earnings 957886498.0844218. Growth capex / owner earnings = 0.2281987015388089.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:09.607Z); FY2019: growth capex 278372022.4741458; upkeep 89852977.52585417; owner earnings 2045231159.474146. Growth capex / owner earnings = 0.1361078532295189.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:09.607Z); FY2020: growth capex 58942913.50952709; upkeep 1012733086.4904729; owner earnings 1814220212.5095272. Growth capex / owner earnings = 0.032489393020263.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:09.607Z); FY2021: growth capex 93446801.21296835; upkeep 248242198.78703165; owner earnings 2706428873.3629684. Growth capex / owner earnings = 0.03452771367194762.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:09.607Z); FY2022: growth capex 10245686.259764194; upkeep 309725313.7402358; owner earnings 2728249828.953764. Growth capex / owner earnings = 0.003755406176894451.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:09.607Z); FY2023: growth capex 9818670.03328824; upkeep 1302132329.9667118; owner earnings 1435472497.2232883. Growth capex / owner earnings = 0.006840026578204057.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:09.607Z); FY2024: growth capex 62023457.32785511; upkeep 510278542.6721449; owner earnings 2250959622.3518553. Growth capex / owner earnings = 0.027554229188283506.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:09.607Z); FY2025: growth capex 0; upkeep 354154400.13; owner earnings 2668407250.076. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:09.607Z); Dividend observations: [[2016,114595000],[2017,240016000],[2018,467420000],[2019,629206000],[2020,1267351000],[2021,770547000],[2022,1633797000],[2023,1988202000],[2024,2263396000],[2025,2255109573.38]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:09.607Z); FY2025: cash repurchases 214361509.50083333 CNY.

### Are managers owners

Insiders own 40% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 002555.SHE SharesStats.PercentInsiders = 40.041 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 1.4% yearly over ten years; actual growth was 17.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:09.607Z); Ten-year compound average after fade. Initial solved rate -0.0010995050141408558. Price 17.27; FX 1; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.24313526095826762 → FY2025 1.2144898419865897. Closing-price date 2026-10-15.

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

- 2016-10: CNY 19.25 per share

- 2016-11: CNY 19.02 per share

- 2016-12: CNY 16.40 per share

- 2017-01: CNY 17.53 per share

- 2017-02: CNY 20.00 per share

- 2017-03: CNY 20.77 per share

- 2017-04: CNY 22.61 per share

- 2017-05: CNY 23.01 per share

- 2017-06: CNY 25.57 per share

- 2017-07: CNY 24.33 per share

- 2017-08: CNY 21.62 per share

- 2017-09: CNY 22.30 per share

- 2017-10: CNY 22.54 per share

- 2017-11: CNY 19.18 per share

- 2017-12: CNY 20.54 per share

- 2018-01: CNY 20.56 per share

- 2018-02: CNY 20.75 per share

- 2018-03: CNY 18.64 per share

- 2018-04: CNY 14.36 per share

- 2018-05: CNY 13.23 per share

- 2018-06: CNY 12.15 per share

- 2018-07: CNY 11.17 per share

- 2018-08: CNY 10.19 per share

- 2018-09: CNY 10.77 per share

- 2018-10: CNY 11.03 per share

- 2018-11: CNY 11.96 per share

- 2018-12: CNY 9.44 per share

- 2019-01: CNY 10.66 per share

- 2019-02: CNY 13.63 per share

- 2019-03: CNY 13.90 per share

- 2019-04: CNY 12.92 per share

- 2019-05: CNY 12.57 per share

- 2019-06: CNY 13.55 per share

- 2019-07: CNY 14.31 per share

- 2019-08: CNY 15.45 per share

- 2019-09: CNY 18.03 per share

- 2019-10: CNY 18.27 per share

- 2019-11: CNY 21.69 per share

- 2019-12: CNY 26.93 per share

- 2020-01: CNY 32.59 per share

- 2020-02: CNY 33.86 per share

- 2020-03: CNY 32.66 per share

- 2020-04: CNY 36.15 per share

- 2020-05: CNY 33.74 per share

- 2020-06: CNY 46.62 per share

- 2020-07: CNY 45.75 per share

- 2020-08: CNY 45.60 per share

- 2020-09: CNY 39.68 per share

- 2020-10: CNY 29.43 per share

- 2020-11: CNY 26.13 per share

- 2020-12: CNY 31.23 per share

- 2021-01: CNY 32.32 per share

- 2021-02: CNY 28.15 per share

- 2021-03: CNY 21.96 per share

- 2021-04: CNY 22.06 per share

- 2021-05: CNY 24.24 per share

- 2021-06: CNY 24.02 per share

- 2021-07: CNY 19.36 per share

- 2021-08: CNY 17.05 per share

- 2021-09: CNY 20.99 per share

- 2021-10: CNY 23.80 per share

- 2021-11: CNY 23.59 per share

- 2021-12: CNY 27.02 per share

- 2022-01: CNY 24.84 per share

- 2022-02: CNY 20.83 per share

- 2022-03: CNY 23.45 per share

- 2022-04: CNY 24.15 per share

- 2022-05: CNY 21.66 per share

- 2022-06: CNY 21.23 per share

- 2022-07: CNY 19.53 per share

- 2022-08: CNY 20.37 per share

- 2022-09: CNY 17.42 per share

- 2022-10: CNY 14.49 per share

- 2022-11: CNY 17.68 per share

- 2022-12: CNY 18.10 per share

- 2023-01: CNY 20.40 per share

- 2023-02: CNY 21.97 per share

- 2023-03: CNY 28.45 per share

- 2023-04: CNY 30.69 per share

- 2023-05: CNY 32.64 per share

- 2023-06: CNY 34.88 per share

- 2023-07: CNY 26.88 per share

- 2023-08: CNY 24.68 per share

- 2023-09: CNY 21.70 per share

- 2023-10: CNY 20.70 per share

- 2023-11: CNY 22.15 per share

- 2023-12: CNY 18.81 per share

- 2024-01: CNY 16.62 per share

- 2024-02: CNY 19.48 per share

- 2024-03: CNY 17.41 per share

- 2024-04: CNY 16.70 per share

- 2024-05: CNY 14.52 per share

- 2024-06: CNY 13.05 per share

- 2024-07: CNY 13.21 per share

- 2024-08: CNY 13.95 per share

- 2024-09: CNY 17.90 per share

- 2024-10: CNY 16.33 per share

- 2024-11: CNY 16.86 per share

- 2024-12: CNY 15.64 per share

- 2025-01: CNY 14.87 per share

- 2025-02: CNY 15.09 per share

- 2025-03: CNY 14.90 per share

- 2025-04: CNY 15.19 per share

- 2025-05: CNY 14.67 per share

- 2025-06: CNY 17.29 per share

- 2025-07: CNY 16.61 per share

- 2025-08: CNY 19.69 per share

- 2025-09: CNY 21.71 per share

- 2025-10: CNY 20.77 per share

- 2025-11: CNY 20.58 per share

- 2025-12: CNY 23.60 per share

- 2026-01: CNY 26.52 per share

- 2026-02: CNY 24.50 per share

- 2026-03: CNY 21.41 per share

- 2026-04: CNY 21.43 per share

- 2026-05: CNY 19.20 per share

- 2026-06: CNY 18.87 per share

- 2026-07: CNY 19.91 per share

- 2026-08: CNY 18.46 per share

- 2026-09: CNY 17.20 per share

- 2026-10: CNY 17.00 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 3.03 per share, central CNY 3.39 per share, high CNY 3.87 per share

- FY2017: low CNY 4.99 per share, central CNY 6.81 per share, high CNY 7.87 per share

- FY2018: low CNY 7.07 per share, central CNY 9.75 per share, high CNY 11.31 per share

- FY2019: low CNY 15.18 per share, central CNY 20.88 per share, high CNY 24.19 per share

- FY2020: low CNY 15.94 per share, central CNY 22.18 per share, high CNY 25.82 per share

- FY2021: low CNY 18.64 per share, central CNY 25.37 per share, high CNY 29.29 per share

- FY2022: low CNY 19.09 per share, central CNY 25.79 per share, high CNY 29.69 per share

- FY2023: low CNY 19.25 per share, central CNY 25.98 per share, high CNY 29.90 per share

- FY2024: low CNY 17.00 per share, central CNY 22.94 per share, high CNY 26.40 per share

- FY2025: low CNY 16.98 per share, central CNY 18.90 per share, high CNY 21.47 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.

## Reported holder observations