# Shennan Circuits (002916.SHE)

Canonical: https://gigainvestors.com/s/002916.SHE

Analysis as of: 2026-10-16T07:34:15.872Z. Financial observations: FY2013–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 318.80 per share; close as of 2026-10-15.

Estimated value: low CNY 40.32 per share, central CNY 56.57 per share, high CNY 66.03 per share. Buy at or below the central value CNY 56.57 per share. Valuation as of 2026-10-16T07:34:15.872Z; 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

- 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: 0.24×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.05×

- FY2017: 0.09×

- FY2018: 0.10×

- FY2019: 0.13×

- FY2020: 0.14×

- FY2021: 0.12×

- FY2022: 0.12×

- FY2023: 0.10×

- FY2024: 0.11×

- FY2025: 0.15×

### moat: fail

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

- ROIC, median of available years: 15.6%

- ROIC, second-lowest year: 9.6%

- Typical minus recent gross margin: -0.5 pp

- Typical gross margin (annual median): 23.2%

- Recent gross margin (lower of latest and 3-year median): 23.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 17.5%

- ROIC including acquisitions, ten-year median: 10.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 8.1%

- FY2017: 15.8%

- FY2018: 17.1%

- FY2019: 20.9%

- FY2020: 17.9%

- FY2021: 15.4%

- FY2022: 14.6%

- FY2023: 9.6%

- FY2024: 12.0%

- FY2025: 17.4%

### economics: fail

- owner earnings cash conversion below threshold

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

- Owner earnings / net income, 5-yr: 0.49×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 4.7B

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

- Return on incremental invested capital: 16.0%

- Working capital / revenue, annual change: 1.8 pp

- Working capital / revenue, change between three-year averages: 13.3 pp

- Working capital / revenue, final three-year average: 25.0%

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

- FY2021: 0.63×

- FY2022: -0.43×

- FY2023: -0.46×

- FY2024: 1.00×

- FY2025: 1.00×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 15.8% vs 12.0%

- Per-share earnings: 0.77 to 3.66 (three-year endpoint medians)

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

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 6.6%

- Ordinary dilution, 5-year annual growth: 6.8%

- Market cap gain: CNY 114B

- Cumulative retained earnings: CNY 9.4B

- Diluted shares, 10-year annual growth: 6.6%

- Diluted shares, 5-year annual growth: 6.8%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 21.5%

- Per-share value change: CNY 2.89

- Per-share value, starting three-year median: CNY 0.77

- Per-share value, ending three-year median: CNY 3.66

- Buybacks concentrated in cheaper years (correlation): -1.00

- Average buyback yield: 0.0%

- Buyback history: 3 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 465M

- Cumulative net income, 10 years: CNY 14B

- ROIC, first three-year median: 15.8%

- ROIC, last three-year median: 12.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.77

- FY2017: CNY 0.96

- FY2018: CNY 1.49

- FY2019: CNY 2.62

- FY2020: CNY 2.98

- FY2021: CNY 3.04

- FY2022: CNY 3.18

- FY2023: CNY 2.73

- FY2024: CNY 3.66

- FY2025: CNY 4.91

### accounting: pass

- Sloan accruals: -1.8%

- Receivables to sales index (DSRI): 1.00×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.17×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.04×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -10.3%

- FY2017: -6.0%

- FY2018: -2.1%

- FY2019: -0.2%

- FY2020: -2.6%

- FY2021: -5.1%

- FY2022: -7.4%

- FY2023: -5.3%

- FY2024: -4.4%

- FY2025: -1.8%

## Holders

## Price story

Down 30% since Jun 2026 · sales +32.1%

Story as of 2026-10-16T09:59:59.917Z; price observation 2026-10-15.

Price needs cash profits to grow 29.7% a year for ten years

### Sales · FY2024–2025

sales +32.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 4.6B 

- FY2017: CNY 5.7B 

- FY2018: CNY 7.6B 

- FY2019: CNY 11B 

- FY2020: CNY 12B 

- FY2021: CNY 14B 

- FY2022: CNY 14B 

- FY2023: CNY 14B 

- FY2024: CNY 18B 

- FY2025: CNY 24B 

### Gross margin · FY2025

gross margin 28.3%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 19.7% 

- FY2017: 22.0% 

- FY2018: 22.5% 

- FY2019: 25.8% 

- FY2020: 25.4% 

- FY2021: 22.6% 

- FY2022: 24.3% 

- FY2023: 22.2% 

- FY2024: 23.7% 

- FY2025: 28.3% 

## Owner memo

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

### How it makes money

Operates in electronic components; annual sales are CNY 23.6 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:15.872Z); FY2025: revenue 23646977088; grossProfit 6695959142; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 002916.SHE: Shennan Circuits Co., Ltd. engages in the design, manufacture, and sale of printed circuit boards, packaging substrates, and electronic assemblies in China and internationally. It operates through Packaging Substrates, Packaging Substrates, and Distribution Substrates segments. The company provides RF and microwave, thermal management, miniaturization, and chip package substrate solutions. It also offers schematic design, PCB / SiP design, PCB / SUB production, electronic assembly, package testing, and other value creations. The company was formerly known as CATIC Shenzhen Shennan Circuit Company and changed its name to Shennan Circuits Co., Ltd. in January 2000. The company was incorporated in 1984 and is headquartered in Shenzhen, China. Shennan Circuits Co., Ltd. operates as a subsidiary of AVIC International Holdings Limited.

### Why customers stay

Margins ranged from 22.2% to 28.3% during 2023–25; it earns 15.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:15.872Z); FY2023: grossProfit / revenue = 22.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:15.872Z); FY2024: grossProfit / revenue = 23.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:15.872Z); FY2025: grossProfit / revenue = 28.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:15.872Z); 10-year return on capital observations [[2016,0.08054052490796197],[2017,0.15772256635028087],[2018,0.1710022855503355],[2019,0.2088801006974074],[2020,0.1786981042506308],[2021,0.15423064161347652],[2022,0.1459093694323919],[2023,0.09589016348229364],[2024,0.12029763799395167],[2025,0.17406710002386547]]; median 0.15597660398187868. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 65.4% of cash earnings on expansion; earns 16% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:15.872Z); FY2016: growth capex 190816695.47000003; upkeep 297813655; owner earnings 274164185. Growth capex / owner earnings = 0.6959942469144904.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:15.872Z); FY2017: growth capex 207185958.25; upkeep 324884813; owner earnings 448082271. Growth capex / owner earnings = 0.4623837443682301.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:15.872Z); FY2018: growth capex 818364033.9000001; upkeep 365937371; owner earnings 697252363. Growth capex / owner earnings = 1.1736984732169349.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:15.872Z); FY2019: growth capex 1735155365.4499998; upkeep 447553253; owner earnings 1232775474. Growth capex / owner earnings = 1.407519375624762.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:15.872Z); FY2020: growth capex 610013292.7616203; upkeep 1875958086.1183798; owner earnings 160253050.88162017. Growth capex / owner earnings = 3.806562741899002.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:15.872Z); FY2021: growth capex 1317087517.9764452; upkeep 1341238133.8535547; owner earnings 929867647.0104452. Growth capex / owner earnings = 1.4164247161528036.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:15.872Z); FY2024: growth capex 1095002672; upkeep 1431458181; owner earnings 1876676494.5. Growth capex / owner earnings = 0.5834797181129184.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:15.872Z); FY2025: growth capex 2136847880; upkeep 1628584643; owner earnings 3266113731.934. Growth capex / owner earnings = 0.6542478478649562.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:15.872Z); Incremental return on capital 0.16002535005185903, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:15.872Z); Dividend observations: [[2016,130336053.62],[2017,195243319],[2018,206603386.3],[2019,212100000],[2020,390264000],[2021,464850053],[2022,487236323],[2023,512877534],[2024,542924070],[2025,844778681.1]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 63.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 002916.SHE SharesStats.PercentInsiders = 63.111 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 29.7% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:15.872Z); Ten-year compound average after fade. Initial solved rate 0.4225547042493444. Price 318.8; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -1.924349711027185 → FY2025 4.898625870704178. Closing-price date 2026-10-15.

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

- 2017-12: CNY 87.23 per share

- 2018-01: CNY 69.30 per share

- 2018-02: CNY 71.00 per share

- 2018-03: CNY 78.27 per share

- 2018-04: CNY 71.61 per share

- 2018-05: CNY 70.41 per share

- 2018-06: CNY 63.51 per share

- 2018-07: CNY 65.00 per share

- 2018-08: CNY 72.98 per share

- 2018-09: CNY 71.31 per share

- 2018-10: CNY 76.70 per share

- 2018-11: CNY 78.50 per share

- 2018-12: CNY 80.17 per share

- 2019-01: CNY 93.77 per share

- 2019-02: CNY 115.80 per share

- 2019-03: CNY 124.41 per share

- 2019-04: CNY 1,000,000.00 per share

- 2019-05: CNY 78.12 per share

- 2019-06: CNY 101.92 per share

- 2019-07: CNY 117.86 per share

- 2019-08: CNY 131.88 per share

- 2019-09: CNY 151.00 per share

- 2019-10: CNY 148.84 per share

- 2019-11: CNY 146.09 per share

- 2019-12: CNY 142.10 per share

- 2020-01: CNY 177.49 per share

- 2020-02: CNY 207.58 per share

- 2020-03: CNY 197.20 per share

- 2020-04: CNY 233.60 per share

- 2020-05: CNY 151.45 per share

- 2020-06: CNY 167.41 per share

- 2020-07: CNY 154.13 per share

- 2020-08: CNY 138.65 per share

- 2020-09: CNY 116.55 per share

- 2020-10: CNY 107.80 per share

- 2020-11: CNY 106.74 per share

- 2020-12: CNY 108.06 per share

- 2021-01: CNY 107.34 per share

- 2021-02: CNY 110.01 per share

- 2021-03: CNY 88.03 per share

- 2021-04: CNY 79.38 per share

- 2021-05: CNY 86.67 per share

- 2021-06: CNY 111.13 per share

- 2021-07: CNY 121.60 per share

- 2021-08: CNY 91.44 per share

- 2021-09: CNY 94.82 per share

- 2021-10: CNY 88.83 per share

- 2021-11: CNY 105.00 per share

- 2021-12: CNY 121.82 per share

- 2022-01: CNY 118.20 per share

- 2022-02: CNY 117.05 per share

- 2022-03: CNY 90.75 per share

- 2022-04: CNY 95.41 per share

- 2022-05: CNY 92.11 per share

- 2022-06: CNY 93.71 per share

- 2022-07: CNY 86.57 per share

- 2022-08: CNY 84.92 per share

- 2022-09: CNY 75.58 per share

- 2022-10: CNY 75.07 per share

- 2022-11: CNY 75.53 per share

- 2022-12: CNY 72.15 per share

- 2023-01: CNY 76.31 per share

- 2023-02: CNY 79.86 per share

- 2023-03: CNY 92.32 per share

- 2023-04: CNY 82.26 per share

- 2023-05: CNY 78.34 per share

- 2023-06: CNY 75.37 per share

- 2023-07: CNY 76.53 per share

- 2023-08: CNY 66.17 per share

- 2023-09: CNY 66.57 per share

- 2023-10: CNY 69.56 per share

- 2023-11: CNY 73.09 per share

- 2023-12: CNY 70.99 per share

- 2024-01: CNY 52.85 per share

- 2024-02: CNY 70.20 per share

- 2024-03: CNY 89.18 per share

- 2024-04: CNY 93.42 per share

- 2024-05: CNY 89.93 per share

- 2024-06: CNY 105.77 per share

- 2024-07: CNY 110.67 per share

- 2024-08: CNY 100.78 per share

- 2024-09: CNY 110.97 per share

- 2024-10: CNY 105.06 per share

- 2024-11: CNY 98.86 per share

- 2024-12: CNY 125.00 per share

- 2025-01: CNY 130.50 per share

- 2025-02: CNY 130.89 per share

- 2025-03: CNY 126.06 per share

- 2025-04: CNY 109.02 per share

- 2025-05: CNY 84.26 per share

- 2025-06: CNY 107.81 per share

- 2025-07: CNY 142.10 per share

- 2025-08: CNY 198.00 per share

- 2025-09: CNY 216.64 per share

- 2025-10: CNY 214.48 per share

- 2025-11: CNY 195.55 per share

- 2025-12: CNY 232.29 per share

- 2026-01: CNY 233.60 per share

- 2026-02: CNY 285.46 per share

- 2026-03: CNY 219.51 per share

- 2026-04: CNY 312.50 per share

- 2026-05: CNY 411.41 per share

- 2026-06: CNY 457.90 per share

- 2026-07: CNY 308.00 per share

- 2026-08: CNY 369.08 per share

- 2026-09: CNY 373.01 per share

- 2026-10: CNY 337.24 per share

## Annual estimated value (CNY per share)

- FY2018: low CNY 11.63 per share, central CNY 13.08 per share, high CNY 15.02 per share

- FY2019: low CNY 21.90 per share, central CNY 24.56 per share, high CNY 28.09 per share

- FY2020: low CNY 21.77 per share, central CNY 24.64 per share, high CNY 28.47 per share

- FY2021: low CNY 25.35 per share, central CNY 28.75 per share, high CNY 33.28 per share

- FY2022: low CNY 23.43 per share, central CNY 26.15 per share, high CNY 29.77 per share

- FY2023: low CNY 7.24 per share, central CNY 9.36 per share, high CNY 10.60 per share

- FY2024: low CNY 8.89 per share, central CNY 11.70 per share, high CNY 13.33 per share

- FY2025: low CNY 32.95 per share, central CNY 46.73 per share, high CNY 54.75 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