# Sangfor Technologies (300454.SHE)

Canonical: https://gigainvestors.com/s/300454.SHE

Analysis as of: 2026-10-16T07:36:15.815Z. Financial observations: FY2014–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 131.00 per share; close as of 2026-10-15.

Estimated value: low CNY 5.34 per share, central CNY 5.58 per share, high CNY 5.90 per share. Buy at or below the central value CNY 5.58 per share. Valuation as of 2026-10-16T07:36:15.815Z; scenarios are not confidence intervals.

Expected annual return: 3.1% at the stated quote. About 3.1% 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: fail

- 1 revenue decline in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.87×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.06×

- FY2017: 0.26×

- FY2018: 0.19×

- FY2019: 0.17×

- FY2020: 0.14×

- FY2021: 0.04×

- FY2022: 0.03×

- FY2023: 0.03×

- FY2024: 0.03×

- FY2025: 0.01×

### moat: fail

- ROIC median below threshold

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

- Recent gross margin fell 8.3pp below the typical margin (limit 4pp)

- ROIC, median of available years: 10.9%

- ROIC, second-lowest year: 2.5%

- Typical minus recent gross margin: 8.3 pp

- Typical gross margin (annual median): 67.6%

- Recent gross margin (lower of latest and 3-year median): 59.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.7%

- ROIC including acquisitions, ten-year median: 10.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 32.1%

- FY2017: >100%

- FY2018: 31.2%

- FY2019: 29.5%

- FY2020: 17.2%

- FY2021: 4.6%

- FY2022: 3.2%

- FY2023: 2.5%

- FY2024: 2.6%

- FY2025: 1.2%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.43×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 544M

- Net income, five-year total: CNY 1.3B

- Return on incremental invested capital: -11.4%

- Working capital / revenue, annual change: -0.7 pp

- Working capital / revenue, change between three-year averages: -5.0 pp

- Working capital / revenue, final three-year average: 2.6%

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

- FY2021: 0.52×

- FY2022: -0.26×

- FY2023: 0.30×

- FY2024: -0.15×

- FY2025: 1.08×

### management: fail

- Historical market-dollar context (not the management verdict): 2018 to 2025 (7 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 32.1% vs 2.5%

- Per-share earnings: 0.95 to 0.47 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- 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: 2.3%

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

- Market cap gain: CNY 14B

- Cumulative retained earnings: CNY 2.6B

- Diluted shares, 10-year annual growth: 2.3%

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

- $1 test, starting fiscal year: FY2018

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -8.4%

- Per-share value change: CNY -0.48

- Per-share value, starting three-year median: CNY 0.95

- Per-share value, ending three-year median: CNY 0.47

- Buybacks concentrated in cheaper years (correlation): -0.37

- Average buyback yield: 0.2%

- Buyback history: 6 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 293M

- Cumulative net income, 10 years: CNY 4.3B

- ROIC, first three-year median: 32.1%

- ROIC, last three-year median: 2.5%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.73

- FY2017: CNY 1.59

- FY2018: CNY 1.51

- FY2019: CNY 1.88

- FY2020: CNY 2.03

- FY2021: CNY 0.66

- FY2022: CNY 0.47

- FY2023: CNY 0.47

- FY2024: CNY 0.47

- FY2025: CNY 0.90

### accounting: pass

- Sloan accruals: -5.7%

- Receivables to sales index (DSRI): 0.64×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 3.42×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.03×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -10.9%

- FY2017: -6.6%

- FY2018: -6.6%

- FY2019: -5.7%

- FY2020: -5.2%

- FY2021: -6.6%

- FY2022: -4.5%

- FY2023: -5.0%

- FY2024: -4.0%

- FY2025: -5.7%

## Holders

## Price story

Down 35% since Oct 2021 · sales +7%

Story as of 2026-10-16T10:00:07.137Z; price observation 2026-10-15.

Price needs cash profits to grow 59% a year for ten years

### Sales · FY2024–2025

sales +7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 1.8B 

- FY2017: CNY 2.5B 

- FY2018: CNY 3.2B 

- FY2019: CNY 4.6B 

- FY2020: CNY 5.5B 

- FY2021: CNY 6.8B 

- FY2022: CNY 7.4B 

- FY2023: CNY 7.7B 

- FY2024: CNY 7.5B 

- FY2025: CNY 8.0B 

### Gross margin · FY2025

gross margin 59.3%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 78.7% 

- FY2017: 75.5% 

- FY2018: 73.3% 

- FY2019: 72.2% 

- FY2020: 70.0% 

- FY2021: 65.3% 

- FY2022: 63.7% 

- FY2023: 65.0% 

- FY2024: 61.2% 

- FY2025: 59.3% 

## Owner memo

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

### How it makes money

Operates in software infrastructure; annual sales are CNY 8 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:15.815Z); FY2025: revenue 8043025023.5; grossProfit 4770044925.25; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 300454.SHE: Sangfor Technologies Inc. provides IT infrastructure, cloud computing, and network security solutions in China and internationally. The company offers cyber security products, including Sangfor Network Secure Firewall platform; Sangfor Cyber Command, an intelligent threat detection and response platform; Sangfor Endpoint Secure for extensive malware protection; Internet Access Gateway, a securely manage internet access; SASE Sangfor Access Secure, a cloud-based SASE for branch offices and remote users; Sangfor Platform-X, a cloud-based security management platform, a secure remote access solution that allows to access Windows desktops and applications from any device or operating system; and Sangfor SSL VPN solution provides support for remote user access to the enterprise network from anywhere Internet-enabled location. It also provides cloud and infrastructure products, such as Sangfor hyperconverged infrastructure, a unified system of data storage; Sangfor cloud platform, an enterprise cloud computing platform; Sangfor aDesk, a virtual desktop infrastructure solution; Sangfor Nano Cloud, a hybrid cloud architecture solution; and aStor Hybrid Flash, a next enterprise-grade storage solution. In addition, the company offers managed cloud, managed detection response, incident response, and threat identification, analysis and risk assessment, ransomware protection, WAN optimization, SD-WAN, and other services. Further, the company engages in the research and development, production, sales, and technical services of basic network-related products and solutions; and education and training businesses. It serves manufacturing, education, finance and banking, government, healthcare, and ISP industries. Sangfor Technologies Inc. was founded in 2000 and is based in Shenzhen, China.

### Why customers stay

Margins ranged from 59.3% to 65% during 2023–25; it earns 10.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:15.815Z); FY2023: grossProfit / revenue = 65%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:15.815Z); FY2024: grossProfit / revenue = 61.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:15.815Z); FY2025: grossProfit / revenue = 59.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:15.815Z); 10-year return on capital observations [[2016,0.3210890091162433],[2017,9.048667297587043],[2018,0.3119971087964066],[2019,0.2950070600513294],[2020,0.17193903957485532],[2021,0.04598844233436979],[2022,0.031716990474642236],[2023,0.02520484423686551],[2024,0.025640188028827327],[2025,0.012205760974985994]]; median 0.10896374095461256. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 64% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:15.815Z); Gross margin observations: [[2021,0.6526559141562618],[2022,0.6373376901168074],[2023,0.6502176227668403]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:15.815Z); FY2016: growth capex 19675909.098937176; upkeep 44671202.901062824; owner earnings 247100063.09893718. Growth capex / owner earnings = 0.07962729289574919.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:15.815Z); FY2017: growth capex 0; upkeep 37724972; owner earnings 581778501. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:15.815Z); FY2018: growth capex 37808959.81595218; upkeep 277411441.1840478; owner earnings 399987628.8159522. Growth capex / owner earnings = 0.09452532301530096.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:15.815Z); FY2019: growth capex 73508643.93983763; upkeep 248805449.06016237; owner earnings 618582404.9398377. Growth capex / owner earnings = 0.11883403626229389.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:15.815Z); FY2020: growth capex 55080424.59556615; upkeep 173666025.40443385; owner earnings 769601080.5955662. Growth capex / owner earnings = 0.07157009778746858.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:15.815Z); FY2021: growth capex 97702626.83276778; upkeep 252340105.3672322; owner earnings 142929109.61076778. Growth capex / owner earnings = 0.6835740256049787.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:15.815Z); FY2023: growth capex 24302923.027870297; upkeep 303815213.9721297; owner earnings 58637241.37387031. Growth capex / owner earnings = 0.41446225058432007.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:15.815Z); FY2025: growth capex 0; upkeep 204362417.55; owner earnings 422649272.23399997. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:15.815Z); Dividend observations: [[2016,371842432],[2017,148084276.4],[2018,121664000],[2019,60459786],[2020,77700804],[2021,82705487],[2022,28987721],[2023,20048589],[2024,50468459],[2025,32504350.22]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 47.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 300454.SHE SharesStats.PercentInsiders = 47.613 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 59% yearly over ten years; actual decline was 0.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:15.815Z); Ten-year compound average after fade. Initial solved rate 0.8771676409942959. Price 131; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.9907379922871528 → FY2025 0.9684117524627149. Closing-price date 2026-10-15.

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

- 2018-05: CNY 114.35 per share

- 2018-06: CNY 109.96 per share

- 2018-07: CNY 96.55 per share

- 2018-08: CNY 93.09 per share

- 2018-09: CNY 83.02 per share

- 2018-10: CNY 75.00 per share

- 2018-11: CNY 82.00 per share

- 2018-12: CNY 89.60 per share

- 2019-01: CNY 79.10 per share

- 2019-02: CNY 98.60 per share

- 2019-03: CNY 104.88 per share

- 2019-04: CNY 99.00 per share

- 2019-05: CNY 88.30 per share

- 2019-06: CNY 87.54 per share

- 2019-07: CNY 98.22 per share

- 2019-08: CNY 111.02 per share

- 2019-09: CNY 109.65 per share

- 2019-10: CNY 124.00 per share

- 2019-11: CNY 113.60 per share

- 2019-12: CNY 114.39 per share

- 2020-01: CNY 154.00 per share

- 2020-02: CNY 199.20 per share

- 2020-03: CNY 158.06 per share

- 2020-04: CNY 191.52 per share

- 2020-05: CNY 188.03 per share

- 2020-06: CNY 205.96 per share

- 2020-07: CNY 213.87 per share

- 2020-08: CNY 219.98 per share

- 2020-09: CNY 211.76 per share

- 2020-10: CNY 190.24 per share

- 2020-11: CNY 201.68 per share

- 2020-12: CNY 248.01 per share

- 2021-01: CNY 297.30 per share

- 2021-02: CNY 265.30 per share

- 2021-03: CNY 247.00 per share

- 2021-04: CNY 273.49 per share

- 2021-05: CNY 270.23 per share

- 2021-06: CNY 259.48 per share

- 2021-07: CNY 242.00 per share

- 2021-08: CNY 272.40 per share

- 2021-09: CNY 234.60 per share

- 2021-10: CNY 202.81 per share

- 2021-11: CNY 196.20 per share

- 2021-12: CNY 191.00 per share

- 2022-01: CNY 154.00 per share

- 2022-02: CNY 145.50 per share

- 2022-03: CNY 111.56 per share

- 2022-04: CNY 89.15 per share

- 2022-05: CNY 94.32 per share

- 2022-06: CNY 103.78 per share

- 2022-07: CNY 96.32 per share

- 2022-08: CNY 96.57 per share

- 2022-09: CNY 100.00 per share

- 2022-10: CNY 126.00 per share

- 2022-11: CNY 112.23 per share

- 2022-12: CNY 112.55 per share

- 2023-01: CNY 151.00 per share

- 2023-02: CNY 142.82 per share

- 2023-03: CNY 147.96 per share

- 2023-04: CNY 119.14 per share

- 2023-05: CNY 124.61 per share

- 2023-06: CNY 113.25 per share

- 2023-07: CNY 112.97 per share

- 2023-08: CNY 109.08 per share

- 2023-09: CNY 93.31 per share

- 2023-10: CNY 83.90 per share

- 2023-11: CNY 84.40 per share

- 2023-12: CNY 72.29 per share

- 2024-01: CNY 54.61 per share

- 2024-02: CNY 63.40 per share

- 2024-03: CNY 62.00 per share

- 2024-04: CNY 54.74 per share

- 2024-05: CNY 54.75 per share

- 2024-06: CNY 50.53 per share

- 2024-07: CNY 49.44 per share

- 2024-08: CNY 46.58 per share

- 2024-09: CNY 70.25 per share

- 2024-10: CNY 65.99 per share

- 2024-11: CNY 65.20 per share

- 2024-12: CNY 57.40 per share

- 2025-01: CNY 59.54 per share

- 2025-02: CNY 102.06 per share

- 2025-03: CNY 107.11 per share

- 2025-04: CNY 98.06 per share

- 2025-05: CNY 89.30 per share

- 2025-06: CNY 94.18 per share

- 2025-07: CNY 108.00 per share

- 2025-08: CNY 129.50 per share

- 2025-09: CNY 125.50 per share

- 2025-10: CNY 131.00 per share

- 2025-11: CNY 115.06 per share

- 2025-12: CNY 115.16 per share

- 2026-01: CNY 160.67 per share

- 2026-02: CNY 131.10 per share

- 2026-03: CNY 101.72 per share

- 2026-04: CNY 117.18 per share

- 2026-05: CNY 106.94 per share

- 2026-06: CNY 96.20 per share

- 2026-07: CNY 119.71 per share

- 2026-08: CNY 134.45 per share

- 2026-09: CNY 137.42 per share

- 2026-10: CNY 134.98 per share

## Annual estimated value (CNY per share)

- FY2018: low CNY 24.74 per share, central CNY 27.60 per share, high CNY 31.40 per share

- FY2019: low CNY 21.71 per share, central CNY 24.13 per share, high CNY 27.35 per share

- FY2020: low CNY 27.13 per share, central CNY 30.04 per share, high CNY 33.92 per share

- FY2021: low CNY 28.83 per share, central CNY 32.17 per share, high CNY 36.61 per share

- FY2022: low CNY 30.99 per share, central CNY 34.35 per share, high CNY 38.81 per share

- FY2023: low CNY 10.35 per share, central CNY 10.93 per share, high CNY 11.69 per share

- FY2024: low CNY 7.52 per share, central CNY 7.84 per share, high CNY 8.15 per share

- FY2025: low CNY 6.83 per share, central CNY 7.04 per share, high CNY 7.32 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.