# Zhejiang Zheneng Electric Power (600023.SHG)

Canonical: https://gigainvestors.com/s/600023.SHG

Analysis as of: 2026-10-16T07:35:44.748Z. Financial observations: FY2010–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 5.41 per share; close as of 2026-10-15.

Estimated value: low CNY 4.22 per share, central CNY 4.65 per share, high CNY 5.23 per share. Buy at or below the central value CNY 4.65 per share. Valuation as of 2026-10-16T07:35:44.748Z; scenarios are not confidence intervals.

Expected annual return: 8.7% at the stated quote. About 8.7% 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

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

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 2

- Operating margin variation: 0.83×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.22×

- FY2017: 0.11×

- FY2018: 0.09×

- FY2019: 0.11×

- FY2020: 0.15×

- FY2021: -0.04×

- FY2022: -0.04×

- FY2023: 0.10×

- FY2024: 0.12×

- FY2025: 0.09×

### moat: fail

- ROIC median below threshold

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

- ROIC, median of available years: 6.2%

- ROIC, second-lowest year: -2.7%

- Typical minus recent gross margin: -0.1 pp

- Typical gross margin (annual median): 11.8%

- Recent gross margin (lower of latest and 3-year median): 12.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 8.1%

- ROIC including acquisitions, ten-year median: 6.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 9.8%

- FY2017: 6.0%

- FY2018: 5.6%

- FY2019: 6.5%

- FY2020: 8.8%

- FY2021: -2.7%

- FY2022: -2.8%

- FY2023: 8.3%

- FY2024: 9.3%

- FY2025: 5.7%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.82×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 16B

- Net income, five-year total: CNY 19B

- Return on incremental invested capital: -117.0%

- Working capital / revenue, annual change: 0.6 pp

- Working capital / revenue, change between three-year averages: 4.3 pp

- Working capital / revenue, final three-year average: 8.5%

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

- FY2021: 0.04×

- FY2022: 1.07×

- FY2023: 0.98×

- FY2024: 0.57×

- FY2025: 0.90×

### management: pass

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

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 6.0% vs 8.3%

- Per-share earnings: 0.45 to 0.56 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.6%

- Ordinary dilution, 5-year annual growth: -0.3%

- Market cap gain: CNY -9.4B

- Cumulative retained earnings: CNY 12B

- Diluted shares, 10-year annual growth: -0.6%

- Diluted shares, 5-year annual growth: -0.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 2.9%

- Per-share value change: CNY 0.11

- Per-share value, starting three-year median: CNY 0.45

- Per-share value, ending three-year median: CNY 0.56

- Buybacks concentrated in cheaper years (correlation): -1.00

- Average buyback yield: 0.7%

- Buyback history: 2 years

- Debt-funded buybacks: Yes

- Acquisition spending: CNY 2.4B

- Cumulative net income, 10 years: CNY 44B

- ROIC, first three-year median: 6.0%

- ROIC, last three-year median: 8.3%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.45

- FY2017: CNY 0.31

- FY2018: CNY 0.32

- FY2019: CNY 0.31

- FY2020: CNY 0.45

- FY2021: CNY -0.05

- FY2022: CNY -0.14

- FY2023: CNY 0.49

- FY2024: CNY 0.58

- FY2025: CNY 0.56

### accounting: pass

- Sloan accruals: -2.5%

- Receivables to sales index (DSRI): 0.84×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.52×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.04×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -6.7%

- FY2017: -5.0%

- FY2018: -2.5%

- FY2019: -4.3%

- FY2020: -3.5%

- FY2021: -1.5%

- FY2022: -1.7%

- FY2023: -3.4%

- FY2024: -3.9%

- FY2025: -2.5%

## Holders

## Price story

Down 24% since Jun 2024 · sales -9.6%

Story as of 2026-10-16T10:00:05.987Z; price observation 2026-10-15.

Price needs cash profits to grow 3.3% a year for ten years

### Sales · FY2024–2025

sales -9.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 39B 

- FY2017: CNY 51B 

- FY2018: CNY 57B 

- FY2019: CNY 54B 

- FY2020: CNY 52B 

- FY2021: CNY 71B 

- FY2022: CNY 80B 

- FY2023: CNY 96B 

- FY2024: CNY 88B 

- FY2025: CNY 80B 

### Gross margin · FY2025

gross margin 12.3%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 22.3% 

- FY2017: 11.7% 

- FY2018: 9.4% 

- FY2019: 12.5% 

- FY2020: 14.6% 

- FY2023: 9.2% 

- FY2024: 12.0% 

- FY2025: 12.3% 

## 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 79.6 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.748Z); FY2025: revenue 79553931304.55; grossProfit 9807942410.13; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600023.SHG: Zhejiang Zheneng Electric Power Co., Ltd. engages in thermal power generation business in China and internationally. The company provides thermal products, as well as invests in nuclear power projects. It also engages in gas power generation, integrated energy and other businesses; coal-fired generation; shipping and port management services; and engineering maintenance, power equipment and engineering, and trading business. The company was formerly known as Zhejiang Electric Power Development. Zhejiang Zheneng Electric Power Co., Ltd. was founded in 1985 and is headquartered in Hangzhou, China. Zhejiang Zheneng Electric Power Co., Ltd. operates as a subsidiary of Zhejiang Provincial Energy Group Company Ltd.

### Why customers stay

Margins ranged from 9.2% to 12.3% during 2023–25; it earns 6.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.748Z); FY2023: grossProfit / revenue = 9.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.748Z); FY2024: grossProfit / revenue = 12%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.748Z); FY2025: grossProfit / revenue = 12.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.748Z); 10-year return on capital observations [[2016,0.09798254567268062],[2017,0.0597909049690195],[2018,0.05612420578882838],[2019,0.0645561280151712],[2020,0.08795536904085469],[2021,-0.027210283343758485],[2022,-0.02833082940217429],[2023,0.08318177150571036],[2024,0.09334790233345],[2025,0.05717095828959781]]; median 0.06217351649209535. 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 2026-10-16T07:35:44.748Z); FY2016: growth capex 0; upkeep 6645292701.89; owner earnings 5118211298.11. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.748Z); FY2017: growth capex 543946221.1400003; upkeep 5667140355; owner earnings 4334460543. Growth capex / owner earnings = 0.12549340702119302.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.748Z); FY2018: growth capex 0; upkeep 2091207205.08; owner earnings 7864124397.92. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.748Z); FY2019: growth capex 0; upkeep 1752576338.88; owner earnings 8239989183.12. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.748Z); FY2020: growth capex 0; upkeep 3202337901.65; owner earnings 8514134098.35. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.748Z); FY2023: growth capex 2946115545.0599995; upkeep 6083824000; owner earnings 6378042994.381594. Growth capex / owner earnings = 0.46191528461868747.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.748Z); FY2024: growth capex 0; upkeep 9679909000; owner earnings 4431730165.769006. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.748Z); FY2025: growth capex 0; upkeep 7220147529.11; owner earnings 6780201895.713851. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.748Z); Dividend observations: [[2016,5067628159.83],[2017,4482318388.27],[2018,3734930188.44],[2019,2448124197],[2020,2720137997],[2021,3060155271],[2022,1407437018.26],[2023,1528535329.27],[2024,4764473000],[2025,5747810794.59]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 78.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600023.SHG SharesStats.PercentInsiders = 78.837 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 3.3% yearly over ten years; actual growth was 3.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:44.748Z); Ten-year compound average after fade. Initial solved rate 0.03441851785126493. Price 5.41; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.3662435330845428 → FY2025 0.5043692945286664. Closing-price date 2026-10-15.

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

- 2016-10: CNY 5.37 per share

- 2016-11: CNY 5.70 per share

- 2016-12: CNY 5.43 per share

- 2017-01: CNY 5.68 per share

- 2017-02: CNY 5.84 per share

- 2017-03: CNY 5.70 per share

- 2017-04: CNY 5.47 per share

- 2017-05: CNY 5.72 per share

- 2017-06: CNY 5.46 per share

- 2017-07: CNY 5.54 per share

- 2017-08: CNY 5.47 per share

- 2017-09: CNY 5.35 per share

- 2017-10: CNY 5.35 per share

- 2017-11: CNY 5.34 per share

- 2017-12: CNY 5.33 per share

- 2018-01: CNY 5.80 per share

- 2018-02: CNY 5.56 per share

- 2018-03: CNY 5.54 per share

- 2018-04: CNY 5.10 per share

- 2018-05: CNY 5.22 per share

- 2018-06: CNY 4.66 per share

- 2018-07: CNY 5.04 per share

- 2018-08: CNY 4.88 per share

- 2018-09: CNY 5.08 per share

- 2018-10: CNY 4.73 per share

- 2018-11: CNY 4.49 per share

- 2018-12: CNY 4.73 per share

- 2019-01: CNY 4.48 per share

- 2019-02: CNY 4.78 per share

- 2019-03: CNY 4.87 per share

- 2019-04: CNY 4.71 per share

- 2019-05: CNY 4.66 per share

- 2019-06: CNY 4.42 per share

- 2019-07: CNY 4.32 per share

- 2019-08: CNY 4.00 per share

- 2019-09: CNY 3.90 per share

- 2019-10: CNY 3.88 per share

- 2019-11: CNY 3.85 per share

- 2019-12: CNY 3.96 per share

- 2020-01: CNY 3.75 per share

- 2020-02: CNY 3.45 per share

- 2020-03: CNY 3.39 per share

- 2020-04: CNY 3.49 per share

- 2020-05: CNY 3.47 per share

- 2020-06: CNY 3.51 per share

- 2020-07: CNY 3.53 per share

- 2020-08: CNY 3.80 per share

- 2020-09: CNY 3.63 per share

- 2020-10: CNY 3.59 per share

- 2020-11: CNY 3.77 per share

- 2020-12: CNY 3.63 per share

- 2021-01: CNY 3.50 per share

- 2021-02: CNY 3.50 per share

- 2021-03: CNY 3.97 per share

- 2021-04: CNY 3.58 per share

- 2021-05: CNY 3.65 per share

- 2021-06: CNY 3.67 per share

- 2021-07: CNY 3.27 per share

- 2021-08: CNY 3.46 per share

- 2021-09: CNY 4.11 per share

- 2021-10: CNY 3.78 per share

- 2021-11: CNY 3.71 per share

- 2021-12: CNY 4.04 per share

- 2022-01: CNY 3.62 per share

- 2022-02: CNY 3.73 per share

- 2022-03: CNY 3.39 per share

- 2022-04: CNY 3.43 per share

- 2022-05: CNY 3.50 per share

- 2022-06: CNY 3.47 per share

- 2022-07: CNY 3.48 per share

- 2022-08: CNY 3.52 per share

- 2022-09: CNY 3.17 per share

- 2022-10: CNY 3.34 per share

- 2022-11: CNY 3.53 per share

- 2022-12: CNY 3.49 per share

- 2023-01: CNY 3.54 per share

- 2023-02: CNY 3.77 per share

- 2023-03: CNY 3.58 per share

- 2023-04: CNY 4.49 per share

- 2023-05: CNY 5.20 per share

- 2023-06: CNY 5.07 per share

- 2023-07: CNY 4.82 per share

- 2023-08: CNY 4.41 per share

- 2023-09: CNY 4.25 per share

- 2023-10: CNY 4.56 per share

- 2023-11: CNY 4.64 per share

- 2023-12: CNY 4.61 per share

- 2024-01: CNY 5.38 per share

- 2024-02: CNY 5.38 per share

- 2024-03: CNY 6.67 per share

- 2024-04: CNY 6.23 per share

- 2024-05: CNY 6.70 per share

- 2024-06: CNY 7.11 per share

- 2024-07: CNY 6.63 per share

- 2024-08: CNY 6.19 per share

- 2024-09: CNY 6.73 per share

- 2024-10: CNY 5.87 per share

- 2024-11: CNY 5.39 per share

- 2024-12: CNY 5.66 per share

- 2025-01: CNY 5.36 per share

- 2025-02: CNY 5.49 per share

- 2025-03: CNY 5.70 per share

- 2025-04: CNY 5.25 per share

- 2025-05: CNY 5.35 per share

- 2025-06: CNY 5.30 per share

- 2025-07: CNY 5.19 per share

- 2025-08: CNY 5.08 per share

- 2025-09: CNY 4.95 per share

- 2025-10: CNY 5.16 per share

- 2025-11: CNY 5.03 per share

- 2025-12: CNY 4.95 per share

- 2026-01: CNY 4.95 per share

- 2026-02: CNY 5.33 per share

- 2026-03: CNY 5.43 per share

- 2026-04: CNY 5.70 per share

- 2026-05: CNY 6.47 per share

- 2026-06: CNY 5.26 per share

- 2026-07: CNY 5.07 per share

- 2026-08: CNY 4.88 per share

- 2026-09: CNY 5.22 per share

- 2026-10: CNY 5.34 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 4.34 per share, central CNY 4.79 per share, high CNY 5.39 per share

- FY2017: low CNY 5.15 per share, central CNY 5.74 per share, high CNY 6.53 per share

- FY2018: low CNY 7.16 per share, central CNY 8.03 per share, high CNY 9.19 per share

- FY2019: low CNY 6.71 per share, central CNY 7.48 per share, high CNY 8.51 per share

- FY2020: low CNY 7.07 per share, central CNY 7.92 per share, high CNY 8.99 per share

- FY2021: low CNY 7.40 per share, central CNY 8.34 per share, high CNY 9.59 per share

- FY2022: low CNY 10.21 per share, central CNY 11.49 per share, high CNY 13.21 per share

- FY2023: low CNY 6.32 per share, central CNY 7.04 per share, high CNY 8.01 per share

- FY2024: low CNY 5.03 per share, central CNY 6.20 per share, high CNY 7.09 per share

- FY2025: low CNY 4.23 per share, central CNY 4.68 per share, high CNY 5.27 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.