# CGN Power (003816.SHE)

Canonical: https://gigainvestors.com/s/003816.SHE

Analysis as of: 2026-10-16T07:34:12.343Z. 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 4.55 per share; close as of 2026-10-15.

## 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: 0.16×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.35×

- FY2017: 0.36×

- FY2018: 0.29×

- FY2019: 0.27×

- FY2020: 0.24×

- FY2021: 0.23×

- FY2022: 0.23×

- FY2023: 0.25×

- FY2024: 0.25×

- FY2025: 0.26×

### moat: fail

- ROIC median below threshold

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

- Recent gross margin fell 6.5pp below the typical margin (limit 4pp)

- ROIC, median of available years: 5.3%

- ROIC, second-lowest year: 4.8%

- Typical minus recent gross margin: 6.5 pp

- Typical gross margin (annual median): 36.5%

- Recent gross margin (lower of latest and 3-year median): 29.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 24.2%

- ROIC including acquisitions, ten-year median: 3.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 4.8%

- FY2017: 5.4%

- FY2018: 5.0%

- FY2019: 5.2%

- FY2020: 5.1%

- FY2021: 5.5%

- FY2022: 5.3%

- FY2023: 5.7%

- FY2024: 5.9%

- FY2025: 4.1%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.70×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 36B

- Net income, five-year total: CNY 51B

- Return on incremental invested capital: 10.3%

- Working capital / revenue, annual change: -4.0 pp

- Working capital / revenue, change between three-year averages: -29.1 pp

- Working capital / revenue, final three-year average: 17.3%

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

- FY2021: 0.98×

- FY2022: 0.99×

- FY2023: 0.85×

- FY2024: 0.99×

- FY2025: -0.38×

### management: fail

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 5.0% vs 5.7%

- Per-share earnings: 0.16 to 0.21 (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: 2.0%

- Ordinary dilution, 5-year annual growth: 1.9%

- Diluted shares, 10-year annual growth: 2.0%

- Diluted shares, 5-year annual growth: 1.9%

- Per-share value growth: 3.6%

- Per-share value change: CNY 0.05

- Per-share value, starting three-year median: CNY 0.16

- Per-share value, ending three-year median: CNY 0.21

- Buyback history: 0 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 14B

- Cumulative net income, 10 years: CNY 96B

- ROIC, first three-year median: 5.0%

- ROIC, last three-year median: 5.7%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.16

- FY2017: CNY 0.21

- FY2018: CNY 0.19

- FY2019: CNY 0.19

- FY2020: CNY 0.19

- FY2021: CNY 0.19

- FY2022: CNY 0.20

- FY2023: CNY 0.21

- FY2024: CNY 0.21

- FY2025: CNY 0.18

### accounting: pass

- Sloan accruals: -4.4%

- Receivables to sales index (DSRI): 1.22×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 3.27×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.14×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.3%

- FY2017: -4.8%

- FY2018: -5.3%

- FY2019: -5.4%

- FY2020: -5.3%

- FY2021: -6.3%

- FY2022: -5.2%

- FY2023: -5.4%

- FY2024: -6.4%

- FY2025: -4.4%

## Holders

## Price story

Up 53% since Oct 2023 · sales -13.5%

Story as of 2026-10-16T09:59:59.547Z; price observation 2026-10-15.

### Sales · FY2024–2025

sales -13.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 32B 

- FY2017: CNY 45B 

- FY2018: CNY 51B 

- FY2019: CNY 61B 

- FY2020: CNY 71B 

- FY2021: CNY 81B 

- FY2022: CNY 83B 

- FY2023: CNY 83B 

- FY2024: CNY 87B 

- FY2025: CNY 75B 

### Gross margin · FY2025

gross margin 29.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 44.2% 

- FY2017: 43.5% 

- FY2018: 43.6% 

- FY2019: 41.7% 

- FY2020: 37.1% 

- FY2021: 33.2% 

- FY2022: 33.2% 

- FY2023: 35.8% 

- FY2024: 33.9% 

- FY2025: 29.9% 

## Owner memo

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

### How it makes money

Operates in utilities independent power producers; annual sales are CNY 75.1 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.343Z); FY2025: revenue 75086977000; grossProfit 22474744000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 29.9% to 35.8% during 2023–25; it earns 5.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.343Z); FY2023: grossProfit / revenue = 35.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.343Z); FY2024: grossProfit / revenue = 33.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.343Z); FY2025: grossProfit / revenue = 29.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.343Z); 10-year return on capital observations [[2016,0.04818531913908906],[2017,0.053840137855127916],[2018,0.04951623165820154],[2019,0.052470720031921415],[2020,0.05096324970460244],[2021,0.054565881904989545],[2022,0.052737268219257824],[2023,0.05734096163649951],[2024,0.058842978906900656],[2025,0.04093629414755951]]; median 0.05260399412558962. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.343Z); FY2016: growth capex 13355291000; upkeep 4532288000; owner earnings 7286934000. Growth capex / owner earnings = 1.8327723292128075.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.343Z); FY2017: growth capex 12093945000; upkeep 6931420000; owner earnings 9500319000. Growth capex / owner earnings = 1.273004095967725.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.343Z); FY2018: growth capex 8877086555.53; upkeep 7753506000; owner earnings 8702633000. Growth capex / owner earnings = 1.0200460660043922.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.343Z); FY2019: growth capex 5732373000; upkeep 9920907000; owner earnings 9465700000. Growth capex / owner earnings = 0.6055941979990914.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.343Z); FY2020: growth capex 2700179000; upkeep 10802998000; owner earnings 9562308000. Growth capex / owner earnings = 0.282377329824557.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.343Z); FY2021: growth capex 3327171000; upkeep 11113645000; owner earnings 9570953770.142. Growth capex / owner earnings = 0.3476321252725721.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.343Z); FY2022: growth capex 1452148000; upkeep 10387535000; owner earnings 9841850607.971272. Growth capex / owner earnings = 0.1475482668700389.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.343Z); FY2023: growth capex 0; upkeep 14246097000; owner earnings 9152740729.215723. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.343Z); FY2024: growth capex 6800612000; upkeep 12865539000; owner earnings 10671639550.154438. Growth capex / owner earnings = 0.6372602792699817.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.343Z); Dividend observations: [[2016,3298973000],[2017,2281201000],[2018,3090516570],[2019,3272297000],[2020,3837874000],[2021,16822925000],[2022,16828619000],[2023,11151159000],[2024,16035252000],[2025,4792850000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 87.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 003816.SHE SharesStats.PercentInsiders = 87.098 percentage points; cache date 2026-10-16.

### What the price says

The price is 3.4 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:12.343Z); Closing price 4.55 CNY; reporting-to-trading FX 1; FY2025 annual sales per share 1.353890744425569; price multiple 3.360684766281109. FY2025 cash earnings/share -0.06671414879244396. Closing-price date 2026-10-15.

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

- 2019-08: CNY 5.18 per share

- 2019-09: CNY 4.20 per share

- 2019-10: CNY 3.87 per share

- 2019-11: CNY 3.49 per share

- 2019-12: CNY 3.60 per share

- 2020-01: CNY 3.57 per share

- 2020-02: CNY 3.09 per share

- 2020-03: CNY 2.90 per share

- 2020-04: CNY 2.85 per share

- 2020-05: CNY 2.83 per share

- 2020-06: CNY 2.96 per share

- 2020-07: CNY 3.05 per share

- 2020-08: CNY 3.01 per share

- 2020-09: CNY 2.86 per share

- 2020-10: CNY 2.74 per share

- 2020-11: CNY 2.81 per share

- 2020-12: CNY 2.82 per share

- 2021-01: CNY 2.74 per share

- 2021-02: CNY 2.75 per share

- 2021-03: CNY 2.84 per share

- 2021-04: CNY 2.71 per share

- 2021-05: CNY 2.78 per share

- 2021-06: CNY 2.67 per share

- 2021-07: CNY 2.54 per share

- 2021-08: CNY 2.65 per share

- 2021-09: CNY 3.37 per share

- 2021-10: CNY 2.92 per share

- 2021-11: CNY 2.90 per share

- 2021-12: CNY 3.13 per share

- 2022-01: CNY 2.88 per share

- 2022-02: CNY 2.94 per share

- 2022-03: CNY 2.73 per share

- 2022-04: CNY 2.83 per share

- 2022-05: CNY 2.80 per share

- 2022-06: CNY 2.80 per share

- 2022-07: CNY 2.76 per share

- 2022-08: CNY 2.81 per share

- 2022-09: CNY 2.64 per share

- 2022-10: CNY 2.64 per share

- 2022-11: CNY 2.75 per share

- 2022-12: CNY 2.69 per share

- 2023-01: CNY 2.71 per share

- 2023-02: CNY 2.73 per share

- 2023-03: CNY 2.87 per share

- 2023-04: CNY 3.10 per share

- 2023-05: CNY 3.11 per share

- 2023-06: CNY 3.11 per share

- 2023-07: CNY 3.11 per share

- 2023-08: CNY 3.14 per share

- 2023-09: CNY 3.14 per share

- 2023-10: CNY 2.97 per share

- 2023-11: CNY 3.03 per share

- 2023-12: CNY 3.11 per share

- 2024-01: CNY 3.82 per share

- 2024-02: CNY 3.86 per share

- 2024-03: CNY 4.04 per share

- 2024-04: CNY 4.11 per share

- 2024-05: CNY 4.19 per share

- 2024-06: CNY 4.63 per share

- 2024-07: CNY 4.68 per share

- 2024-08: CNY 4.78 per share

- 2024-09: CNY 4.50 per share

- 2024-10: CNY 4.04 per share

- 2024-11: CNY 3.91 per share

- 2024-12: CNY 4.13 per share

- 2025-01: CNY 3.69 per share

- 2025-02: CNY 3.62 per share

- 2025-03: CNY 3.63 per share

- 2025-04: CNY 3.52 per share

- 2025-05: CNY 3.67 per share

- 2025-06: CNY 3.64 per share

- 2025-07: CNY 3.68 per share

- 2025-08: CNY 3.84 per share

- 2025-09: CNY 3.62 per share

- 2025-10: CNY 3.94 per share

- 2025-11: CNY 3.77 per share

- 2025-12: CNY 3.76 per share

- 2026-01: CNY 3.85 per share

- 2026-02: CNY 3.95 per share

- 2026-03: CNY 4.61 per share

- 2026-04: CNY 4.58 per share

- 2026-05: CNY 4.58 per share

- 2026-06: CNY 3.91 per share

- 2026-07: CNY 4.13 per share

- 2026-08: CNY 4.27 per share

- 2026-09: CNY 4.23 per share

- 2026-10: CNY 4.43 per share

## Annual estimated value (CNY 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.