# Huizhou Desay SV Automotive (002920.SHE)

Canonical: https://gigainvestors.com/s/002920.SHE

Analysis as of: 2026-10-16T07:36:49.744Z. 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 72.13 per share; close as of 2026-10-15.

Estimated value: low CNY 50.94 per share, central CNY 70.22 per share, high CNY 81.45 per share. Buy at or below the central value CNY 70.22 per share. Valuation as of 2026-10-16T07:36:49.744Z; scenarios are not confidence intervals.

Expected annual return: 9.8% at the stated quote. About 9.8% 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: 0.23×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.12×

- FY2017: 0.11×

- FY2018: 0.08×

- FY2019: 0.05×

- FY2020: 0.08×

- FY2021: 0.09×

- FY2022: 0.08×

- FY2023: 0.07×

- FY2024: 0.08×

- FY2025: 0.08×

### moat: pass

- ROIC, median of available years: 20.8%

- ROIC, second-lowest year: 12.6%

- Typical minus recent gross margin: 3.6 pp

- Typical gross margin (annual median): 22.5%

- Recent gross margin (lower of latest and 3-year median): 19.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 5.8%

- ROIC including acquisitions, ten-year median: 16.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 36.2%

- FY2017: 33.3%

- FY2018: 12.6%

- FY2019: 6.8%

- FY2020: 17.9%

- FY2021: 22.5%

- FY2022: 18.2%

- FY2023: 20.0%

- FY2024: 21.6%

- FY2025: 22.4%

### economics: pass

- Owner earnings / net income, 5-yr: 0.83×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 6.7B

- Net income, five-year total: CNY 8.0B

- Return on incremental invested capital: 16.9%

- Working capital / revenue, annual change: 0.1 pp

- Working capital / revenue, change between three-year averages: 0.9 pp

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

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

- FY2021: 0.88×

- FY2022: 0.76×

- FY2023: 0.99×

- FY2024: 0.81×

- FY2025: 0.77×

### 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: 33.3% vs 21.6%

- Per-share earnings: 1.32 to 3.62 (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: 2.9%

- Ordinary dilution, 5-year annual growth: 1.4%

- Market cap gain: CNY 54B

- Cumulative retained earnings: CNY 6.9B

- Diluted shares, 10-year annual growth: 2.9%

- Diluted shares, 5-year annual growth: 1.4%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 13.5%

- Per-share value change: CNY 2.30

- Per-share value, starting three-year median: CNY 1.32

- Per-share value, ending three-year median: CNY 3.62

- Average buyback yield: 0.8%

- Buyback history: 1 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 443M

- Cumulative net income, 10 years: CNY 10B

- ROIC, first three-year median: 33.3%

- ROIC, last three-year median: 21.6%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 1.32

- FY2017: CNY 1.39

- FY2018: CNY 0.73

- FY2019: CNY 0.50

- FY2020: CNY 0.93

- FY2021: CNY 1.49

- FY2022: CNY 2.16

- FY2023: CNY 2.82

- FY2024: CNY 3.62

- FY2025: CNY 4.13

### accounting: pass

- Sloan accruals: -1.5%

- Receivables to sales index (DSRI): 0.93×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.18×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.03×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 0.7%

- FY2017: -0.5%

- FY2018: -5.6%

- FY2019: -1.7%

- FY2020: 1.0%

- FY2021: -0.1%

- FY2022: 4.2%

- FY2023: 2.3%

- FY2024: 2.4%

- FY2025: -1.5%

## Holders

## Price story

Down 63% since Jul 2022 · sales +17.9%

Story as of 2026-10-16T10:00:08.184Z; price observation 2026-10-15.

Price needs cash profits to grow 6.9% a year for ten years

### Sales · FY2024–2025

sales +17.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 5.7B 

- FY2017: CNY 6.0B 

- FY2018: CNY 5.4B 

- FY2019: CNY 5.3B 

- FY2020: CNY 6.8B 

- FY2021: CNY 9.6B 

- FY2022: CNY 15B 

- FY2023: CNY 22B 

- FY2024: CNY 28B 

- FY2025: CNY 33B 

### Gross margin · FY2025

gross margin 19.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 26.4% 

- FY2017: 25.2% 

- FY2018: 22.7% 

- FY2019: 21.8% 

- FY2020: 22.8% 

- FY2021: 24.3% 

- FY2022: 22.4% 

- FY2023: 19.0% 

- FY2024: 18.8% 

- FY2025: 19.1% 

## Owner memo

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

### How it makes money

Operates in auto parts; annual sales are CNY 32.6 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:49.744Z); FY2025: revenue 32557178348; grossProfit 6208201774; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 002920.SHE: Huizhou Desay SV Automotive Co., Ltd. engages in the research, development, production, and sale of automotive electronic products in China and internationally. The company offers smart cabin solutions, including smart display system, such as display system and head-up display; smart interaction system comprising instrument clusters, IVI, smart device, and smart amplifier; and smart domain controller platform, which includes smart vehicle control and smart cabin domain controller. It also provides smart driving solutions, such as smart driving computing system comprising assisted driving domain controller; and smart driving sensor, including camera, millimeter wave radar, and smart antennas. In addition, the company offers connected service solutions, such as ecosystem software comprising blue whale ecosystem, D sharing, OTA solution, and cybersecurity; software services comprising software testing, certification, and tooling, in-vehicle business mid-platform service, and software consulting and nearby; and smart entry, which includes keyless entry, child presence detection, kick sensor, and key fob. It exports its products. The company was founded in 1986 and is headquartered in Huizhou, China.

### Why customers stay

Margins ranged from 18.8% to 19.1% during 2023–25; it earns 20.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:49.744Z); FY2023: grossProfit / revenue = 19%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:49.744Z); FY2024: grossProfit / revenue = 18.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:49.744Z); FY2025: grossProfit / revenue = 19.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:49.744Z); 10-year return on capital observations [[2016,0.3621670325926955],[2017,0.3329486613661127],[2018,0.1256705720052816],[2019,0.06775154492046657],[2020,0.17854106847737145],[2021,0.22466013864968548],[2022,0.1818507796487133],[2023,0.2004316311651104],[2024,0.21641546614404764],[2025,0.22364876870838438]]; median 0.20842354865457902. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 31.5% of cash earnings on expansion; earns 16.9% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:49.744Z); FY2016: growth capex 210693737.25697237; upkeep 135756370.74302763; owner earnings 522977758.2569724. Growth capex / owner earnings = 0.4028732272653268.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:49.744Z); FY2017: growth capex 34138662.058024704; upkeep 221022869.9419753; owner earnings 494067358.0580247. Growth capex / owner earnings = 0.06909718179361156.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:49.744Z); FY2018: growth capex 0; upkeep 247088094; owner earnings 291547421. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:49.744Z); FY2019: growth capex 0; upkeep 394932563; owner earnings 48697987. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:49.744Z); FY2020: growth capex 168097816.8440722; upkeep 263729691.1559278; owner earnings 438480987.8440722. Growth capex / owner earnings = 0.38336398043294245.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:49.744Z); FY2021: growth capex 342707665.6953531; upkeep 332818748.3046469; owner earnings 734232443.5573531. Growth capex / owner earnings = 0.46675636401319437.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:49.744Z); FY2022: growth capex 695362087.0497916; upkeep 603596722.9502084; owner earnings 895526132.3077916. Growth capex / owner earnings = 0.7764844173311027.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:49.744Z); FY2023: growth capex 657084679; upkeep 452514158; owner earnings 1535310455.738. Growth capex / owner earnings = 0.4279816349483203.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:49.744Z); FY2024: growth capex 717067451.0792608; upkeep 760792249.9207392; owner earnings 1632294479.4212608. Growth capex / owner earnings = 0.43930029790549874.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:49.744Z); FY2025: growth capex 593702880.8587213; upkeep 1209080467.1412787; owner earnings 1886474075.7307212. Growth capex / owner earnings = 0.31471563192764884.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:49.744Z); Incremental return on capital 0.16868909978702773, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:49.744Z); Dividend observations: [[2016,196361838],[2017,176986564],[2018,170845204],[2019,110000000],[2020,110000000],[2021,170063984],[2022,268824609],[2023,335982563],[2024,498968948],[2025,692752304]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:49.744Z); FY2025: cash repurchases 600352026 CNY.

### Are managers owners

Insiders own 56.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 002920.SHE SharesStats.PercentInsiders = 56.943999999999996 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 6.9% yearly over ten years; actual growth was 19.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:49.744Z); Ten-year compound average after fade. Initial solved rate 0.0853210397037466. Price 72.13; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.5362823769089243 → FY2025 3.1730703224124635. Closing-price date 2026-10-15.

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

- 2017-12: CNY 39.13 per share

- 2018-01: CNY 35.55 per share

- 2018-02: CNY 36.85 per share

- 2018-03: CNY 36.95 per share

- 2018-04: CNY 33.21 per share

- 2018-05: CNY 32.45 per share

- 2018-06: CNY 29.90 per share

- 2018-07: CNY 26.33 per share

- 2018-08: CNY 22.05 per share

- 2018-09: CNY 21.45 per share

- 2018-10: CNY 17.73 per share

- 2018-11: CNY 19.88 per share

- 2018-12: CNY 17.35 per share

- 2019-01: CNY 20.60 per share

- 2019-02: CNY 25.78 per share

- 2019-03: CNY 28.89 per share

- 2019-04: CNY 25.20 per share

- 2019-05: CNY 22.14 per share

- 2019-06: CNY 22.40 per share

- 2019-07: CNY 26.57 per share

- 2019-08: CNY 22.36 per share

- 2019-09: CNY 23.55 per share

- 2019-10: CNY 25.04 per share

- 2019-11: CNY 25.35 per share

- 2019-12: CNY 30.33 per share

- 2020-01: CNY 34.40 per share

- 2020-02: CNY 43.07 per share

- 2020-03: CNY 30.49 per share

- 2020-04: CNY 41.03 per share

- 2020-05: CNY 52.22 per share

- 2020-06: CNY 61.33 per share

- 2020-07: CNY 70.89 per share

- 2020-08: CNY 69.66 per share

- 2020-09: CNY 71.05 per share

- 2020-10: CNY 68.00 per share

- 2020-11: CNY 73.89 per share

- 2020-12: CNY 84.14 per share

- 2021-01: CNY 112.15 per share

- 2021-02: CNY 90.00 per share

- 2021-03: CNY 85.76 per share

- 2021-04: CNY 105.02 per share

- 2021-05: CNY 111.07 per share

- 2021-06: CNY 110.08 per share

- 2021-07: CNY 102.59 per share

- 2021-08: CNY 88.13 per share

- 2021-09: CNY 84.08 per share

- 2021-10: CNY 107.35 per share

- 2021-11: CNY 139.03 per share

- 2021-12: CNY 141.51 per share

- 2022-01: CNY 137.00 per share

- 2022-02: CNY 132.12 per share

- 2022-03: CNY 126.62 per share

- 2022-04: CNY 119.53 per share

- 2022-05: CNY 126.85 per share

- 2022-06: CNY 148.00 per share

- 2022-07: CNY 195.00 per share

- 2022-08: CNY 153.00 per share

- 2022-09: CNY 137.95 per share

- 2022-10: CNY 103.60 per share

- 2022-11: CNY 109.99 per share

- 2022-12: CNY 105.34 per share

- 2023-01: CNY 131.18 per share

- 2023-02: CNY 114.07 per share

- 2023-03: CNY 110.95 per share

- 2023-04: CNY 103.38 per share

- 2023-05: CNY 113.47 per share

- 2023-06: CNY 155.81 per share

- 2023-07: CNY 155.55 per share

- 2023-08: CNY 145.51 per share

- 2023-09: CNY 143.64 per share

- 2023-10: CNY 125.60 per share

- 2023-11: CNY 129.83 per share

- 2023-12: CNY 129.51 per share

- 2024-01: CNY 85.06 per share

- 2024-02: CNY 102.60 per share

- 2024-03: CNY 124.51 per share

- 2024-04: CNY 125.87 per share

- 2024-05: CNY 100.43 per share

- 2024-06: CNY 87.09 per share

- 2024-07: CNY 95.31 per share

- 2024-08: CNY 91.19 per share

- 2024-09: CNY 119.79 per share

- 2024-10: CNY 121.87 per share

- 2024-11: CNY 124.87 per share

- 2024-12: CNY 110.11 per share

- 2025-01: CNY 108.51 per share

- 2025-02: CNY 123.69 per share

- 2025-03: CNY 112.91 per share

- 2025-04: CNY 104.26 per share

- 2025-05: CNY 110.56 per share

- 2025-06: CNY 102.13 per share

- 2025-07: CNY 101.59 per share

- 2025-08: CNY 127.13 per share

- 2025-09: CNY 151.23 per share

- 2025-10: CNY 118.48 per share

- 2025-11: CNY 109.99 per share

- 2025-12: CNY 120.30 per share

- 2026-01: CNY 122.30 per share

- 2026-02: CNY 124.04 per share

- 2026-03: CNY 103.88 per share

- 2026-04: CNY 103.07 per share

- 2026-05: CNY 101.76 per share

- 2026-06: CNY 81.50 per share

- 2026-07: CNY 92.45 per share

- 2026-08: CNY 88.25 per share

- 2026-09: CNY 79.28 per share

- 2026-10: CNY 76.96 per share

## Annual estimated value (CNY per share)

- FY2017: low CNY 15.17 per share, central CNY 16.51 per share, high CNY 18.28 per share

- FY2018: low CNY 8.27 per share, central CNY 9.20 per share, high CNY 10.45 per share

- FY2019: low CNY 7.20 per share, central CNY 8.11 per share, high CNY 9.33 per share

- FY2020: low CNY 11.44 per share, central CNY 12.64 per share, high CNY 14.22 per share

- FY2021: low CNY 15.32 per share, central CNY 16.99 per share, high CNY 19.21 per share

- FY2022: low CNY 19.33 per share, central CNY 21.79 per share, high CNY 25.06 per share

- FY2023: low CNY 36.22 per share, central CNY 50.47 per share, high CNY 58.98 per share

- FY2024: low CNY 37.24 per share, central CNY 42.37 per share, high CNY 49.20 per share

- FY2025: low CNY 52.57 per share, central CNY 71.70 per share, high CNY 82.84 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