# Sany Heavy Industry (600031.SHG)

Canonical: https://gigainvestors.com/s/600031.SHG

Analysis as of: 2026-10-16T07:34:33.370Z. Financial observations: FY2000–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 17.75 per share; close as of 2026-10-15.

Estimated value: low CNY 10.84 per share, central CNY 11.62 per share, high CNY 12.66 per share. Buy at or below the central value CNY 11.62 per share. Valuation as of 2026-10-16T07:34:33.370Z; scenarios are not confidence intervals.

Expected annual return: 6.5% at the stated quote. About 6.5% 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

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

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.42×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.05×

- FY2017: 0.08×

- FY2018: 0.14×

- FY2019: 0.18×

- FY2020: 0.19×

- FY2021: 0.13×

- FY2022: 0.06×

- FY2023: 0.07×

- FY2024: 0.09×

- FY2025: 0.12×

### moat: fail

- ROIC median below threshold

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

- ROIC, median of available years: 13.6%

- ROIC, second-lowest year: 6.5%

- Typical minus recent gross margin: 0.4 pp

- Typical gross margin (annual median): 27.5%

- Recent gross margin (lower of latest and 3-year median): 27.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.4%

- ROIC including acquisitions, ten-year median: 9.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 3.1%

- FY2017: 6.5%

- FY2018: 20.4%

- FY2019: 34.4%

- FY2020: 36.1%

- FY2021: 22.5%

- FY2022: 6.8%

- FY2023: 6.8%

- FY2024: 9.9%

- FY2025: 17.2%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.67×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 24B

- Net income, five-year total: CNY 35B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -5.7 pp

- Working capital / revenue, change between three-year averages: -32.9 pp

- Working capital / revenue, final three-year average: 33.4%

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

- FY2021: 0.43×

- FY2022: 0.23×

- FY2023: 0.61×

- FY2024: 0.98×

- FY2025: 1.07×

### 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: 6.5% vs 9.9%

- Per-share earnings: 0.03 to 0.71 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 1.4%

- Ordinary dilution, 5-year annual growth: 0.2%

- Market cap gain: CNY 136B

- Cumulative retained earnings: CNY 45B

- Diluted shares, 10-year annual growth: 1.4%

- Diluted shares, 5-year annual growth: 0.2%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 49.8%

- Per-share value change: CNY 0.68

- Per-share value, starting three-year median: CNY 0.03

- Per-share value, ending three-year median: CNY 0.71

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 0.5%

- Buyback history: 3 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 1.8B

- Cumulative net income, 10 years: CNY 70B

- ROIC, first three-year median: 6.5%

- ROIC, last three-year median: 9.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.03

- FY2017: CNY 0.27

- FY2018: CNY 0.79

- FY2019: CNY 1.34

- FY2020: CNY 1.82

- FY2021: CNY 1.43

- FY2022: CNY 0.51

- FY2023: CNY 0.53

- FY2024: CNY 0.71

- FY2025: CNY 0.98

### accounting: pass

- Sloan accruals: -6.7%

- Receivables to sales index (DSRI): 0.75×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.38×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.05×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -4.9%

- FY2017: -11.1%

- FY2018: -6.0%

- FY2019: -2.1%

- FY2020: 1.6%

- FY2021: 0.1%

- FY2022: 0.1%

- FY2023: -0.8%

- FY2024: -5.8%

- FY2025: -6.7%

## Holders

## Price story

Down 24% since Sep 2025 · sales +14.4%

Story as of 2026-10-16T10:00:01.199Z; price observation 2026-10-15.

Price needs cash profits to grow 9.3% a year for ten years

### Sales · FY2024–2025

sales +14.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 23B 

- FY2017: CNY 38B 

- FY2018: CNY 56B 

- FY2019: CNY 76B 

- FY2020: CNY 100B 

- FY2021: CNY 107B 

- FY2022: CNY 81B 

- FY2023: CNY 74B 

- FY2024: CNY 78B 

- FY2025: CNY 90B 

### Gross margin · FY2025

gross margin 27.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 25.8% 

- FY2017: 29.5% 

- FY2018: 30.2% 

- FY2019: 32.9% 

- FY2020: 30.0% 

- FY2021: 26.1% 

- FY2022: 24.2% 

- FY2023: 27.0% 

- FY2024: 26.9% 

- FY2025: 27.9% 

## Owner memo

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

### How it makes money

Operates in farm & heavy construction machinery; annual sales are CNY 89.7 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:33.370Z); FY2025: revenue 89699505000; grossProfit 25039212000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600031.SHG: Sany Heavy Industry Co.,Ltd engages in the research and development, manufacture, and sale of construction machinery in Chinese mainland and internationally. It operates through six segments: Concrete Machinery, Excavating Machinery, Hoisting Machinery, Piling Machinery, Road Machinery, and Financial Services. The company offers concrete pump trucks, concrete delivery pumps, and wall grabs; truck mounted concrete, trailer, and line pump, as well as placing boom, truck mixer, and batching plant; and excavator, such as mini, small, medium, large, long-reach, and wheel excavators. It also provides truck, all-terrain, rough-terrain, truck-mounted, crawler, tower, and loader cranes; roller, motor grader, paver, milling machine, and asphalt batching plant machineries; and dump truck. In addition, the company offers rotary drilling rig, hydraulic grab, and trench cutter; water tower, foam, aerial platform, and water mist fire trucks; and construction machinery product loans, finance lease, and interbank lending and borrowing among financial institutions. Further, it provides maintenance services; and MySANY, a mobile app for SANY Group customers. Additionally, the company manufactures and sells pile drivers. Sany Heavy Industry Co.,Ltd was founded in 1994 and is headquartered in Beijing, China.

### Why customers stay

Margins ranged from 26.9% to 27.9% during 2023–25; it earns 13.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:33.370Z); FY2023: grossProfit / revenue = 27%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:33.370Z); FY2024: grossProfit / revenue = 26.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:33.370Z); FY2025: grossProfit / revenue = 27.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:33.370Z); 10-year return on capital observations [[2016,0.03124151049995271],[2017,0.06540498245428152],[2018,0.20425525759659294],[2019,0.3442636236386079],[2020,0.36087568459823194],[2021,0.2250144502398134],[2022,0.06804258740168946],[2023,0.06826635749827802],[2024,0.09947411683944035],[2025,0.1723664735959211]]; median 0.13592029521768073. 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 2026-10-16T07:34:33.370Z); FY2016: growth capex 0; upkeep 704948000; owner earnings 1593474000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:33.370Z); FY2017: growth capex 0; upkeep 515331000; owner earnings 3490379000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:33.370Z); FY2018: growth capex 0; upkeep 1380223000; owner earnings 6650325000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:33.370Z); FY2019: growth capex 344190000; upkeep 2010444000; owner earnings 11325923000. Growth capex / owner earnings = 0.030389576196129888.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:33.370Z); FY2020: growth capex 3170155000; upkeep 1889757000; owner earnings 15434691000. Growth capex / owner earnings = 0.20539154298586218.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:33.370Z); FY2021: growth capex 1469496544.607874; upkeep 8830475455.392126; owner earnings 5172771144.607874. Growth capex / owner earnings = 0.28408303857395384.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:33.370Z); FY2022: growth capex 0; upkeep 5665026000; owner earnings 965853400. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:33.370Z); FY2023: growth capex 0; upkeep 4525221000; owner earnings 2763046800. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:33.370Z); FY2024: growth capex 78926000; upkeep 2859361000; owner earnings 5867124200. Growth capex / owner earnings = 0.013452246332197978.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:33.370Z); FY2025: growth capex 0; upkeep 2771319000; owner earnings 8993083800. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:33.370Z); Dividend observations: [[2016,923925000],[2017,745555000],[2018,1681861000],[2019,2164967000],[2020,3931219000],[2021,5560948000],[2022,4549036000],[2023,2548694000],[2024,2931206000],[2025,6136778000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 32.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600031.SHG SharesStats.PercentInsiders = 32.491 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 9.3% yearly over ten years; actual growth was 34.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:33.370Z); Ten-year compound average after fade. Initial solved rate 0.12067417429188543. Price 17.75; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.05257504589137242 → FY2025 1.0518242928731376. Closing-price date 2026-10-15.

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

- 2016-10: CNY 5.88 per share

- 2016-11: CNY 6.50 per share

- 2016-12: CNY 6.10 per share

- 2017-01: CNY 6.88 per share

- 2017-02: CNY 7.30 per share

- 2017-03: CNY 7.20 per share

- 2017-04: CNY 7.03 per share

- 2017-05: CNY 6.90 per share

- 2017-06: CNY 8.13 per share

- 2017-07: CNY 8.51 per share

- 2017-08: CNY 7.83 per share

- 2017-09: CNY 7.65 per share

- 2017-10: CNY 8.20 per share

- 2017-11: CNY 9.01 per share

- 2017-12: CNY 9.07 per share

- 2018-01: CNY 9.19 per share

- 2018-02: CNY 8.28 per share

- 2018-03: CNY 7.87 per share

- 2018-04: CNY 8.72 per share

- 2018-05: CNY 8.09 per share

- 2018-06: CNY 8.97 per share

- 2018-07: CNY 9.25 per share

- 2018-08: CNY 9.00 per share

- 2018-09: CNY 8.88 per share

- 2018-10: CNY 7.87 per share

- 2018-11: CNY 8.03 per share

- 2018-12: CNY 8.34 per share

- 2019-01: CNY 9.12 per share

- 2019-02: CNY 10.39 per share

- 2019-03: CNY 12.78 per share

- 2019-04: CNY 11.92 per share

- 2019-05: CNY 12.07 per share

- 2019-06: CNY 13.08 per share

- 2019-07: CNY 14.12 per share

- 2019-08: CNY 13.47 per share

- 2019-09: CNY 14.28 per share

- 2019-10: CNY 13.47 per share

- 2019-11: CNY 14.48 per share

- 2019-12: CNY 17.05 per share

- 2020-01: CNY 16.03 per share

- 2020-02: CNY 17.43 per share

- 2020-03: CNY 17.30 per share

- 2020-04: CNY 19.65 per share

- 2020-05: CNY 18.33 per share

- 2020-06: CNY 18.76 per share

- 2020-07: CNY 21.11 per share

- 2020-08: CNY 22.14 per share

- 2020-09: CNY 24.89 per share

- 2020-10: CNY 25.95 per share

- 2020-11: CNY 30.71 per share

- 2020-12: CNY 34.98 per share

- 2021-01: CNY 40.46 per share

- 2021-02: CNY 41.11 per share

- 2021-03: CNY 34.15 per share

- 2021-04: CNY 30.88 per share

- 2021-05: CNY 30.29 per share

- 2021-06: CNY 29.07 per share

- 2021-07: CNY 24.82 per share

- 2021-08: CNY 26.23 per share

- 2021-09: CNY 25.44 per share

- 2021-10: CNY 22.96 per share

- 2021-11: CNY 21.90 per share

- 2021-12: CNY 22.80 per share

- 2022-01: CNY 20.14 per share

- 2022-02: CNY 19.61 per share

- 2022-03: CNY 17.52 per share

- 2022-04: CNY 16.50 per share

- 2022-05: CNY 16.95 per share

- 2022-06: CNY 19.06 per share

- 2022-07: CNY 17.04 per share

- 2022-08: CNY 15.75 per share

- 2022-09: CNY 13.88 per share

- 2022-10: CNY 13.50 per share

- 2022-11: CNY 15.91 per share

- 2022-12: CNY 15.80 per share

- 2023-01: CNY 17.52 per share

- 2023-02: CNY 18.73 per share

- 2023-03: CNY 17.09 per share

- 2023-04: CNY 16.49 per share

- 2023-05: CNY 14.68 per share

- 2023-06: CNY 16.63 per share

- 2023-07: CNY 17.75 per share

- 2023-08: CNY 15.49 per share

- 2023-09: CNY 15.89 per share

- 2023-10: CNY 14.47 per share

- 2023-11: CNY 13.65 per share

- 2023-12: CNY 13.77 per share

- 2024-01: CNY 13.07 per share

- 2024-02: CNY 13.94 per share

- 2024-03: CNY 14.58 per share

- 2024-04: CNY 16.31 per share

- 2024-05: CNY 16.18 per share

- 2024-06: CNY 16.50 per share

- 2024-07: CNY 16.15 per share

- 2024-08: CNY 16.12 per share

- 2024-09: CNY 18.88 per share

- 2024-10: CNY 18.25 per share

- 2024-11: CNY 17.48 per share

- 2024-12: CNY 16.48 per share

- 2025-01: CNY 16.10 per share

- 2025-02: CNY 18.20 per share

- 2025-03: CNY 19.07 per share

- 2025-04: CNY 18.89 per share

- 2025-05: CNY 18.83 per share

- 2025-06: CNY 17.95 per share

- 2025-07: CNY 19.94 per share

- 2025-08: CNY 21.03 per share

- 2025-09: CNY 23.24 per share

- 2025-10: CNY 22.14 per share

- 2025-11: CNY 20.32 per share

- 2025-12: CNY 21.13 per share

- 2026-01: CNY 21.92 per share

- 2026-02: CNY 23.15 per share

- 2026-03: CNY 19.22 per share

- 2026-04: CNY 20.35 per share

- 2026-05: CNY 17.94 per share

- 2026-06: CNY 17.28 per share

- 2026-07: CNY 20.55 per share

- 2026-08: CNY 20.01 per share

- 2026-09: CNY 17.49 per share

- 2026-10: CNY 17.84 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 2.53 per share, central CNY 2.75 per share, high CNY 3.04 per share

- FY2017: low CNY 3.78 per share, central CNY 4.37 per share, high CNY 5.01 per share

- FY2018: low CNY 8.27 per share, central CNY 11.13 per share, high CNY 12.79 per share

- FY2019: low CNY 13.56 per share, central CNY 18.34 per share, high CNY 21.12 per share

- FY2020: low CNY 22.05 per share, central CNY 30.25 per share, high CNY 35.02 per share

- FY2021: low CNY 19.76 per share, central CNY 22.03 per share, high CNY 25.06 per share

- FY2022: low CNY 16.54 per share, central CNY 18.26 per share, high CNY 20.54 per share

- FY2023: low CNY 8.45 per share, central CNY 9.08 per share, high CNY 9.93 per share

- FY2024: low CNY 8.43 per share, central CNY 9.10 per share, high CNY 10.00 per share

- FY2025: low CNY 11.68 per share, central CNY 12.44 per share, high CNY 13.46 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 2026-10-15T06:40:19.546Z 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.