# Chaozhou Three-circle Group (300408.SHE)

Canonical: https://gigainvestors.com/s/300408.SHE

Analysis as of: 2026-10-16T07:34:21.554Z. Financial observations: FY2011–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 96.31 per share; close as of 2026-10-15.

Estimated value: low CNY 27.32 per share, central CNY 37.50 per share, high CNY 43.43 per share. Buy at or below the central value CNY 37.50 per share. Valuation as of 2026-10-16T07:34:21.554Z; scenarios are not confidence intervals.

Expected annual return: 5.6% at the stated quote. About 5.6% 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

- 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: 0.13×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.41×

- FY2017: 0.40×

- FY2018: 0.41×

- FY2019: 0.37×

- FY2020: 0.42×

- FY2021: 0.37×

- FY2022: 0.32×

- FY2023: 0.31×

- FY2024: 0.34×

- FY2025: 0.27×

### moat: fail

- Recent gross margin fell 7.7pp below the typical margin (limit 4pp)

- ROIC, median of available years: 20.6%

- ROIC, second-lowest year: 13.1%

- Typical minus recent gross margin: 7.7 pp

- Typical gross margin (annual median): 48.1%

- Recent gross margin (lower of latest and 3-year median): 40.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 20.1%

- ROIC including acquisitions, ten-year median: 17.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 21.5%

- FY2017: 19.8%

- FY2018: 34.0%

- FY2019: 23.3%

- FY2020: 28.2%

- FY2021: 25.8%

- FY2022: 18.1%

- FY2023: 13.1%

- FY2024: 18.2%

- FY2025: 12.7%

### economics: pass

- Owner earnings / net income, 5-yr: 0.96×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 9.5B

- Net income, five-year total: CNY 9.9B

- Return on incremental invested capital: 15.0%

- Working capital / revenue, annual change: -0.6 pp

- Working capital / revenue, change between three-year averages: -5.2 pp

- Working capital / revenue, final three-year average: 54.2%

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

- FY2021: 1.00×

- FY2022: 0.60×

- FY2023: 1.03×

- FY2024: 1.00×

- FY2025: 1.06×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 21.5% vs 13.1%

- Per-share earnings: 0.60 to 1.14 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.9%

- Ordinary dilution, 5-year annual growth: 2.2%

- Market cap gain: CNY 59B

- Cumulative retained earnings: CNY 9.7B

- Diluted shares, 10-year annual growth: 0.9%

- Diluted shares, 5-year annual growth: 2.2%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 8.4%

- Per-share value change: CNY 0.54

- Per-share value, starting three-year median: CNY 0.60

- Per-share value, ending three-year median: CNY 1.14

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 0.1%

- Buyback history: 2 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 635M

- Cumulative net income, 10 years: CNY 16B

- ROIC, first three-year median: 21.5%

- ROIC, last three-year median: 13.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.60

- FY2017: CNY 0.64

- FY2018: CNY 0.76

- FY2019: CNY 0.48

- FY2020: CNY 0.84

- FY2021: CNY 1.05

- FY2022: CNY 0.80

- FY2023: CNY 0.82

- FY2024: CNY 1.14

- FY2025: CNY 1.37

### accounting: pass

- Sloan accruals: -2.0%

- Receivables to sales index (DSRI): 1.15×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.20×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.03×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 1.9%

- FY2017: 1.4%

- FY2018: -2.6%

- FY2019: -9.8%

- FY2020: 2.1%

- FY2021: 4.6%

- FY2022: -2.9%

- FY2023: -0.6%

- FY2024: -0.9%

- FY2025: -2.0%

## Holders

## Price story

Down 42% since Jun 2026 · sales +21.2%

Story as of 2026-10-16T10:00:00.232Z; price observation 2026-10-15.

Price needs cash profits to grow 19.4% a year for ten years

### Sales · FY2024–2025

sales +21.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 2.9B 

- FY2017: CNY 3.1B 

- FY2018: CNY 3.8B 

- FY2019: CNY 2.7B 

- FY2020: CNY 4.0B 

- FY2021: CNY 6.2B 

- FY2022: CNY 5.1B 

- FY2023: CNY 5.7B 

- FY2024: CNY 7.4B 

- FY2025: CNY 8.9B 

### Gross margin · FY2025

gross margin 40.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 47.8% 

- FY2017: 48.4% 

- FY2018: 53.4% 

- FY2019: 48.8% 

- FY2020: 50.2% 

- FY2021: 48.5% 

- FY2022: 42.6% 

- FY2023: 39.7% 

- FY2024: 42.5% 

- FY2025: 40.4% 

## Owner memo

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

### How it makes money

Operates in electronic components; annual sales are CNY 8.9 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:21.554Z); FY2025: revenue 8942046015; grossProfit 3613226928; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 300408.SHE: Chaozhou Three-Circle (Group) Co.,Ltd., together with its subsidiaries, engages in the research, development, production, and sale of electronic ceramic electronic components and basic materials in China and internationally. The company offers precision ceramic structural components, such as high-performance and high-precision ceramic structural components for the electronics industry and others; and components, including multilayer chip ceramic capacitors, as well as lead resistors of various sizes, temperature characteristics, and withstand voltage levels. It also provides optical communication for specifications of ceramic ferrules, ceramic sleeves, optical fiber quick connectors, MT ferrules, and other products; and ceramic appearance products for use in smartphones, smartwatches, laptops, earphones, smart home, and automotive exterior part applications. In addition, the company offers package products consisting of glass and metal packaging, ceramic packaging bases, ceramic wedge, and other products; modules and piezo dispensing valves; and electronic materials comprising alumina substrates, aluminum nitride substrates, electronic pastes, solder paste, metallized ceramics, ceramic structural parts, and ceramic substrates. Chaozhou Three-Circle (Group) Co.,Ltd. was founded in 1970 and is headquartered in Chaozhou, China.

### Why customers stay

Margins ranged from 39.7% to 42.5% during 2023–25; it earns 20.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:21.554Z); FY2023: grossProfit / revenue = 39.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:21.554Z); FY2024: grossProfit / revenue = 42.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:21.554Z); FY2025: grossProfit / revenue = 40.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:21.554Z); 10-year return on capital observations [[2016,0.21532429761650443],[2017,0.1975758067993058],[2018,0.34025592757401874],[2019,0.23278811311130107],[2020,0.28165596260715625],[2021,0.2580958697926927],[2022,0.18106648910745446],[2023,0.13073124144762271],[2024,0.1824937419201116],[2025,0.12706468852792677]]; median 0.20645005220790513. 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 175.4 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:21.554Z); FY2016: growth capex 138665857.5237379; upkeep 297642068.4762621; owner earnings 890633079.5237379. Growth capex / owner earnings = 0.15569358550873594.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:21.554Z); FY2017: growth capex 94597892.56635833; upkeep 725441852.4336417; owner earnings 526809885.5663583. Growth capex / owner earnings = 0.17956742110991106.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:21.554Z); FY2018: growth capex 270351587.89622015; upkeep 442782613.10377985; owner earnings 1104631852.8962202. Growth capex / owner earnings = 0.24474361045029505.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:21.554Z); FY2019: growth capex 0; upkeep 578573085; owner earnings 554821746. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:21.554Z); FY2020: growth capex 815266183.123581; upkeep 348957611.87641895; owner earnings 1364819492.123581. Growth capex / owner earnings = 0.5973435958590199.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:21.554Z); FY2021: growth capex 1537845209; upkeep 372519956; owner earnings 2010464003.608. Growth capex / owner earnings = 0.7649205388607638.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:21.554Z); FY2022: growth capex 0; upkeep 1124809077; owner earnings 898255721.572. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:21.554Z); FY2023: growth capex 0; upkeep 545884686; owner earnings 1623737315.74. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:21.554Z); FY2024: growth capex 0; upkeep 639035151; owner earnings 2188384202.342. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:21.554Z); FY2025: growth capex 0; upkeep 580091976; owner earnings 2774965445.076. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:21.554Z); Dividend observations: [[2016,302336300],[2017,348206277.4],[2018,351086356],[2019,435790755],[2020,350151004],[2021,454226488],[2022,613279158],[2023,489934668],[2024,553659596],[2025,726318156]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:21.554Z); FY2025: cash repurchases 175440732 CNY.

### Are managers owners

Insiders own 39.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 300408.SHE SharesStats.PercentInsiders = 39.224 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 19.4% yearly over ten years; actual growth was 11.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:21.554Z); Ten-year compound average after fade. Initial solved rate 0.2688662002795691. Price 96.31; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.5021054828853838 → FY2025 1.4518249929401188. Closing-price date 2026-10-15.

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

- 2016-10: CNY 18.10 per share

- 2016-11: CNY 16.93 per share

- 2016-12: CNY 15.88 per share

- 2017-01: CNY 17.15 per share

- 2017-02: CNY 18.31 per share

- 2017-03: CNY 19.81 per share

- 2017-04: CNY 21.59 per share

- 2017-05: CNY 20.58 per share

- 2017-06: CNY 20.99 per share

- 2017-07: CNY 21.83 per share

- 2017-08: CNY 20.68 per share

- 2017-09: CNY 24.59 per share

- 2017-10: CNY 23.67 per share

- 2017-11: CNY 20.09 per share

- 2017-12: CNY 20.16 per share

- 2018-01: CNY 20.50 per share

- 2018-02: CNY 23.11 per share

- 2018-03: CNY 24.13 per share

- 2018-04: CNY 22.78 per share

- 2018-05: CNY 23.82 per share

- 2018-06: CNY 23.50 per share

- 2018-07: CNY 24.22 per share

- 2018-08: CNY 24.13 per share

- 2018-09: CNY 20.79 per share

- 2018-10: CNY 18.54 per share

- 2018-11: CNY 17.54 per share

- 2018-12: CNY 16.92 per share

- 2019-01: CNY 16.71 per share

- 2019-02: CNY 19.68 per share

- 2019-03: CNY 20.74 per share

- 2019-04: CNY 19.81 per share

- 2019-05: CNY 18.88 per share

- 2019-06: CNY 19.45 per share

- 2019-07: CNY 20.84 per share

- 2019-08: CNY 19.71 per share

- 2019-09: CNY 20.00 per share

- 2019-10: CNY 18.77 per share

- 2019-11: CNY 18.72 per share

- 2019-12: CNY 22.28 per share

- 2020-01: CNY 23.29 per share

- 2020-02: CNY 23.80 per share

- 2020-03: CNY 18.17 per share

- 2020-04: CNY 20.84 per share

- 2020-05: CNY 19.74 per share

- 2020-06: CNY 27.50 per share

- 2020-07: CNY 28.61 per share

- 2020-08: CNY 28.06 per share

- 2020-09: CNY 28.82 per share

- 2020-10: CNY 31.05 per share

- 2020-11: CNY 31.95 per share

- 2020-12: CNY 37.25 per share

- 2021-01: CNY 39.07 per share

- 2021-02: CNY 37.40 per share

- 2021-03: CNY 41.88 per share

- 2021-04: CNY 43.30 per share

- 2021-05: CNY 37.18 per share

- 2021-06: CNY 42.42 per share

- 2021-07: CNY 46.50 per share

- 2021-08: CNY 37.60 per share

- 2021-09: CNY 37.10 per share

- 2021-10: CNY 40.00 per share

- 2021-11: CNY 41.70 per share

- 2021-12: CNY 44.60 per share

- 2022-01: CNY 38.00 per share

- 2022-02: CNY 34.85 per share

- 2022-03: CNY 27.99 per share

- 2022-04: CNY 28.65 per share

- 2022-05: CNY 29.62 per share

- 2022-06: CNY 30.10 per share

- 2022-07: CNY 26.86 per share

- 2022-08: CNY 27.10 per share

- 2022-09: CNY 26.04 per share

- 2022-10: CNY 28.40 per share

- 2022-11: CNY 30.18 per share

- 2022-12: CNY 30.71 per share

- 2023-01: CNY 33.33 per share

- 2023-02: CNY 31.86 per share

- 2023-03: CNY 30.10 per share

- 2023-04: CNY 30.25 per share

- 2023-05: CNY 30.15 per share

- 2023-06: CNY 29.35 per share

- 2023-07: CNY 32.51 per share

- 2023-08: CNY 32.11 per share

- 2023-09: CNY 31.00 per share

- 2023-10: CNY 30.86 per share

- 2023-11: CNY 29.32 per share

- 2023-12: CNY 29.45 per share

- 2024-01: CNY 22.85 per share

- 2024-02: CNY 25.36 per share

- 2024-03: CNY 24.69 per share

- 2024-04: CNY 27.92 per share

- 2024-05: CNY 29.09 per share

- 2024-06: CNY 29.19 per share

- 2024-07: CNY 32.75 per share

- 2024-08: CNY 31.40 per share

- 2024-09: CNY 37.10 per share

- 2024-10: CNY 37.17 per share

- 2024-11: CNY 36.55 per share

- 2024-12: CNY 38.51 per share

- 2025-01: CNY 37.90 per share

- 2025-02: CNY 38.90 per share

- 2025-03: CNY 39.64 per share

- 2025-04: CNY 34.31 per share

- 2025-05: CNY 32.70 per share

- 2025-06: CNY 33.40 per share

- 2025-07: CNY 33.09 per share

- 2025-08: CNY 44.22 per share

- 2025-09: CNY 46.33 per share

- 2025-10: CNY 49.69 per share

- 2025-11: CNY 44.00 per share

- 2025-12: CNY 45.75 per share

- 2026-01: CNY 50.00 per share

- 2026-02: CNY 63.10 per share

- 2026-03: CNY 52.85 per share

- 2026-04: CNY 85.70 per share

- 2026-05: CNY 128.78 per share

- 2026-06: CNY 166.90 per share

- 2026-07: CNY 111.68 per share

- 2026-08: CNY 115.00 per share

- 2026-09: CNY 117.33 per share

- 2026-10: CNY 102.80 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 5.60 per share, central CNY 6.34 per share, high CNY 7.33 per share

- FY2017: low CNY 6.38 per share, central CNY 7.22 per share, high CNY 8.34 per share

- FY2018: low CNY 8.80 per share, central CNY 9.78 per share, high CNY 11.10 per share

- FY2019: low CNY 6.80 per share, central CNY 7.47 per share, high CNY 8.36 per share

- FY2020: low CNY 10.65 per share, central CNY 11.69 per share, high CNY 13.06 per share

- FY2021: low CNY 17.26 per share, central CNY 22.83 per share, high CNY 26.08 per share

- FY2022: low CNY 14.12 per share, central CNY 16.36 per share, high CNY 18.31 per share

- FY2023: low CNY 14.95 per share, central CNY 19.88 per share, high CNY 22.76 per share

- FY2024: low CNY 19.68 per share, central CNY 26.33 per share, high CNY 30.21 per share

- FY2025: low CNY 22.35 per share, central CNY 30.43 per share, high CNY 35.14 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

Prior published observations retained from 2026-10-15T06:40:06.401Z where newer inputs omit a numeric field or fiscal period.

## 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