# Shenzhen Inovance Tech (300124.SHE)

Canonical: https://gigainvestors.com/s/300124.SHE

Analysis as of: 2026-10-01T19:02:45.032Z. Financial observations: FY2007–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 49.39 per share; close as of 2026-10-15.

Estimated value: low CNY 24.79 per share, central CNY 33.63 per share, high CNY 38.78 per share. Buy at or below the central value CNY 33.63 per share. Valuation as of 2026-10-01T19:02:45.032Z; scenarios are not confidence intervals.

Expected annual return: 7.6% at the stated quote. About 7.6% 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

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

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.22×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.23×

- FY2017: 0.25×

- FY2018: 0.22×

- FY2019: 0.14×

- FY2020: 0.20×

- FY2021: 0.21×

- FY2022: 0.19×

- FY2023: 0.16×

- FY2024: 0.12×

- FY2025: 0.13×

### moat: fail

- FY2023 gross margin fell 5.6pp versus the FY2019/FY2020 mean (limit 4pp)

- ROIC, median of available years: 33.2%

- ROIC, second-lowest year: 21.5%

- Typical minus recent gross margin: 5.6 pp

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.6%

- ROIC including acquisitions, ten-year median: 25.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: >100%

- FY2017: 45.6%

- FY2018: 31.5%

- FY2019: 21.5%

- FY2020: 35.6%

- FY2021: 41.1%

- FY2022: 34.9%

- FY2023: 29.1%

- FY2024: 18.2%

- FY2025: 23.1%

### economics: pass

- Owner earnings / net income, 5-yr: 0.94×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 21B

- Net income, five-year total: CNY 22B

- Return on incremental invested capital: 140.0%

- Working capital / revenue, annual change: -5.1 pp

- Working capital / revenue, change between three-year averages: -34.9 pp

- Working capital / revenue, final three-year average: 14.2%

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

- FY2021: 0.94×

- FY2022: 0.87×

- FY2023: 1.00×

- FY2024: 0.96×

- FY2025: 0.93×

### management: pass

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

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 45.6% vs 23.1%

- Ordinary dilution, 10-year annual growth: 1.1%

- Ordinary dilution, 5-year annual growth: 0.7%

- Market cap gain: CNY 170B

- Cumulative retained earnings: CNY 20B

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

- Diluted shares, 5-year annual growth: 0.7%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 20.9%

- Per-share value change: CNY 1.40

- Per-share value, starting three-year median: CNY 0.39

- Per-share value, ending three-year median: CNY 1.80

- Buybacks concentrated in cheaper years (correlation): 0.30

- Average buyback yield: 0.2%

- Buyback history: 9 years

- Debt-funded buybacks: Yes

- Acquisition spending: CNY 2.7B

- Cumulative net income, 10 years: CNY 28B

- ROIC, first three-year median: 45.6%

- ROIC, last three-year median: 23.1%

### accounting: pass

- Sloan accruals: -2.3%

- Receivables to sales index (DSRI): 0.56×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.32×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.09×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 6.4%

- FY2017: 6.3%

- FY2018: 6.7%

- FY2019: -2.7%

- FY2020: 3.4%

- FY2021: 6.6%

- FY2022: 2.9%

- FY2023: 2.8%

- FY2024: -5.1%

- FY2025: -2.3%

## Holders

## Price story

Down 38% since Sep 2025 · sales +21.8%

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

Price needs cash profits to grow 12.6% a year for ten years

### Sales · FY2024–2025

sales +21.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-01.

- FY2016: CNY 3.7B 

- FY2017: CNY 4.8B 

- FY2018: CNY 5.9B 

- FY2019: CNY 7.4B 

- FY2020: CNY 12B 

- FY2021: CNY 18B 

- FY2022: CNY 23B 

- FY2023: CNY 30B 

- FY2024: CNY 37B 

- FY2025: CNY 45B 

### Gross margin · FY2025

gross margin 29%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-01.

- FY2016: 47.9% 

- FY2017: 44.6% 

- FY2018: 41.8% 

- FY2019: 37.4% 

- FY2020: 37.2% 

- FY2021: 35.5% 

- FY2022: 34.7% 

- FY2023: 31.7% 

- FY2024: 27.9% 

- FY2025: 29.0% 

## Owner memo

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

### How it makes money

Operates in electrical equipment & parts; annual sales are CNY 45.1 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T19:02:45.032Z); FY2025: revenue 45104844200.13; grossProfit 13059905352.89; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-02); 300124.SHE: Shenzhen Inovance Technology Co.,Ltd manufactures and sells industrial automation control solutions in China and internationally. It operates through four segments: Industrial Automation and Digitalization, New Energy Vehicle Powertrain Systems, Emerging Industries, and Others. The company offers drive system products, including general-purpose low voltage, industry tailored low voltage, engineering, and medium voltage AC drives; motion control system products comprising servo drives and motors; control system products that include PLCS, I/O modules, and HMIs; industrial general-purpose and industry-specific motors; and industrial vision products, such as industrial cameras, vision software platform, and vision components. It also provides industrial robot systems, including articulator 6-axis robots, SCARA robots, robot control cabinet, and robot optional accessories; elevator controllers; and power conversion systems. It serves the off-highway vehicles, lithium batteries, air conditioning and refrigeration, injection molding machinery, and test equipment industries. The company was founded in 2003 and is headquartered in Shenzhen, China.

### Why customers stay

Margins ranged from 27.9% to 31.7% during 2023–25; it earns 33.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T19:02:45.032Z); FY2023: grossProfit / revenue = 31.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T19:02:45.032Z); FY2024: grossProfit / revenue = 27.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T19:02:45.032Z); FY2025: grossProfit / revenue = 29%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T19:02:45.032Z); 10-year return on capital observations [[2016,2.7009858227332284],[2017,0.4561349814145146],[2018,0.314566617734942],[2019,0.21510945210960852],[2020,0.3563323167986434],[2021,0.41126154773643153],[2022,0.3494642085057695],[2023,0.29126004119108007],[2024,0.18177619080678942],[2025,0.2312390412169031]]; median 0.33201541312035576. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 36.6% of cash earnings on expansion; earns over 100% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T19:02:45.032Z); FY2016: growth capex 48697519.03999999; upkeep 88083529; owner earnings 914447156. Growth capex / owner earnings = 0.0532535081119548.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T19:02:45.032Z); FY2017: growth capex 64361493.24000001; upkeep 102969772; owner earnings 1008471463. Growth capex / owner earnings = 0.06382083737752726.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T19:02:45.032Z); FY2018: growth capex 145782750.75; upkeep 138166669; owner earnings 1152522646. Growth capex / owner earnings = 0.1264901399169557.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T19:02:45.032Z); FY2019: growth capex 50725935.31999999; upkeep 200170509; owner earnings 920421100. Growth capex / owner earnings = 0.055111660651847284.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T19:02:45.032Z); FY2020: growth capex 98542787.66000003; upkeep 259784729; owner earnings 2039159627. Growth capex / owner earnings = 0.04832519551447555.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T19:02:45.032Z); FY2021: growth capex 494151372.58000004; upkeep 284437822; owner earnings 3352295507.212. Growth capex / owner earnings = 0.14740686539026818.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T19:02:45.032Z); FY2022: growth capex 957667318.6714054; upkeep 704584322.6085945; owner earnings 3765751120.4794054. Growth capex / owner earnings = 0.2543097746059989.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T19:02:45.032Z); FY2023: growth capex 969913529; upkeep 538785977; owner earnings 4724537684.204. Growth capex / owner earnings = 0.2052927913439668.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T19:02:45.032Z); FY2024: growth capex 1309840548.3715508; upkeep 802408170.0284493; owner earnings 4113064844.801551. Growth capex / owner earnings = 0.3184585212720488.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T19:02:45.032Z); FY2025: growth capex 1719606132.2866068; upkeep 1304325943.7733932; owner earnings 4694688854.656607. Growth capex / owner earnings = 0.3662875614389119.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T19:02:45.032Z); Incremental return on capital 1.3999163325369992, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T19:02:45.032Z); Dividend observations: [[2016,397312640.5],[2017,474214889.51],[2018,512525211.15],[2019,331319998],[2020,309550219],[2021,619100438],[2022,790063092],[2023,1121189542.08],[2024,1324684276],[2025,1224248761.52]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 40.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-02); 300124.SHE SharesStats.PercentInsiders = 40.367 percentage points; cache date 2026-10-02.

### What the price says

The price assumes cash profits grow 12.6% yearly over ten years; actual growth was 19.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-01T19:02:45.032Z); Ten-year compound average after fade. Initial solved rate 0.16881740389007371. Price 51.9; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.29933602248994073 → FY2025 1.7526452528339134. Closing-price date 2026-09-30.

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

- 2016-09: CNY 12.61 per share

- 2016-10: CNY 13.77 per share

- 2016-11: CNY 14.07 per share

- 2016-12: CNY 13.55 per share

- 2017-01: CNY 13.73 per share

- 2017-02: CNY 14.45 per share

- 2017-03: CNY 14.63 per share

- 2017-04: CNY 15.66 per share

- 2017-05: CNY 15.33 per share

- 2017-06: CNY 17.03 per share

- 2017-07: CNY 16.56 per share

- 2017-08: CNY 17.60 per share

- 2017-09: CNY 19.27 per share

- 2017-10: CNY 20.57 per share

- 2017-11: CNY 17.37 per share

- 2017-12: CNY 19.35 per share

- 2018-01: CNY 18.72 per share

- 2018-02: CNY 21.02 per share

- 2018-03: CNY 23.57 per share

- 2018-04: CNY 21.88 per share

- 2018-05: CNY 21.79 per share

- 2018-06: CNY 21.88 per share

- 2018-07: CNY 17.79 per share

- 2018-08: CNY 17.38 per share

- 2018-09: CNY 18.47 per share

- 2018-10: CNY 14.85 per share

- 2018-11: CNY 14.22 per share

- 2018-12: CNY 13.43 per share

- 2019-01: CNY 14.47 per share

- 2019-02: CNY 17.30 per share

- 2019-03: CNY 17.49 per share

- 2019-04: CNY 17.27 per share

- 2019-05: CNY 15.10 per share

- 2019-06: CNY 15.27 per share

- 2019-07: CNY 16.61 per share

- 2019-08: CNY 15.35 per share

- 2019-09: CNY 16.22 per share

- 2019-10: CNY 16.62 per share

- 2019-11: CNY 17.51 per share

- 2019-12: CNY 20.43 per share

- 2020-01: CNY 19.53 per share

- 2020-02: CNY 18.87 per share

- 2020-03: CNY 17.15 per share

- 2020-04: CNY 21.83 per share

- 2020-05: CNY 23.02 per share

- 2020-06: CNY 25.27 per share

- 2020-07: CNY 33.45 per share

- 2020-08: CNY 37.67 per share

- 2020-09: CNY 38.53 per share

- 2020-10: CNY 42.93 per share

- 2020-11: CNY 51.33 per share

- 2020-12: CNY 62.20 per share

- 2021-01: CNY 63.43 per share

- 2021-02: CNY 56.86 per share

- 2021-03: CNY 57.01 per share

- 2021-04: CNY 59.63 per share

- 2021-05: CNY 65.66 per share

- 2021-06: CNY 74.26 per share

- 2021-07: CNY 77.86 per share

- 2021-08: CNY 71.02 per share

- 2021-09: CNY 63.00 per share

- 2021-10: CNY 65.23 per share

- 2021-11: CNY 65.60 per share

- 2021-12: CNY 68.60 per share

- 2022-01: CNY 59.99 per share

- 2022-02: CNY 63.66 per share

- 2022-03: CNY 57.00 per share

- 2022-04: CNY 57.70 per share

- 2022-05: CNY 61.23 per share

- 2022-06: CNY 65.87 per share

- 2022-07: CNY 66.12 per share

- 2022-08: CNY 59.97 per share

- 2022-09: CNY 57.51 per share

- 2022-10: CNY 66.70 per share

- 2022-11: CNY 70.26 per share

- 2022-12: CNY 69.50 per share

- 2023-01: CNY 71.18 per share

- 2023-02: CNY 73.30 per share

- 2023-03: CNY 70.30 per share

- 2023-04: CNY 61.80 per share

- 2023-05: CNY 59.09 per share

- 2023-06: CNY 64.21 per share

- 2023-07: CNY 71.01 per share

- 2023-08: CNY 68.28 per share

- 2023-09: CNY 66.49 per share

- 2023-10: CNY 60.44 per share

- 2023-11: CNY 66.01 per share

- 2023-12: CNY 63.14 per share

- 2024-01: CNY 55.96 per share

- 2024-02: CNY 63.21 per share

- 2024-03: CNY 61.22 per share

- 2024-04: CNY 59.50 per share

- 2024-05: CNY 57.94 per share

- 2024-06: CNY 51.30 per share

- 2024-07: CNY 46.65 per share

- 2024-08: CNY 43.30 per share

- 2024-09: CNY 62.45 per share

- 2024-10: CNY 55.41 per share

- 2024-11: CNY 60.30 per share

- 2024-12: CNY 58.58 per share

- 2025-01: CNY 60.19 per share

- 2025-02: CNY 72.15 per share

- 2025-03: CNY 68.17 per share

- 2025-04: CNY 71.59 per share

- 2025-05: CNY 65.78 per share

- 2025-06: CNY 64.57 per share

- 2025-07: CNY 63.39 per share

- 2025-08: CNY 75.03 per share

- 2025-09: CNY 83.82 per share

- 2025-10: CNY 77.01 per share

- 2025-11: CNY 70.66 per share

- 2025-12: CNY 75.33 per share

- 2026-01: CNY 74.63 per share

- 2026-02: CNY 72.92 per share

- 2026-03: CNY 67.00 per share

- 2026-04: CNY 68.60 per share

- 2026-05: CNY 73.96 per share

- 2026-06: CNY 66.33 per share

- 2026-07: CNY 64.06 per share

- 2026-08: CNY 61.87 per share

- 2026-09: CNY 52.49 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 4.68 per share, central CNY 5.08 per share, high CNY 5.61 per share

- FY2017: low CNY 5.15 per share, central CNY 6.85 per share, high CNY 7.85 per share

- FY2018: low CNY 6.11 per share, central CNY 8.26 per share, high CNY 9.50 per share

- FY2019: low CNY 6.51 per share, central CNY 8.67 per share, high CNY 9.94 per share

- FY2020: low CNY 6.88 per share, central CNY 9.15 per share, high CNY 10.48 per share

- FY2021: low CNY 8.06 per share, central CNY 10.60 per share, high CNY 12.08 per share

- FY2022: low CNY 13.98 per share, central CNY 18.50 per share, high CNY 21.14 per share

- FY2023: low CNY 20.52 per share, central CNY 27.93 per share, high CNY 32.24 per share

- FY2024: low CNY 20.75 per share, central CNY 28.91 per share, high CNY 33.66 per share

- FY2025: low CNY 25.08 per share, central CNY 34.02 per share, high CNY 39.23 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.