# Sichuan Road & Bridge Group (600039.SHG)

Canonical: https://gigainvestors.com/s/600039.SHG

Analysis as of: 2026-10-16T07:35:38.879Z. 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 9.02 per share; close as of 2026-10-15.

Estimated value: low CNY 11.68 per share, central CNY 13.02 per share, high CNY 14.81 per share. Buy at or below the central value CNY 13.02 per share. Valuation as of 2026-10-16T07:35:38.879Z; scenarios are not confidence intervals.

Expected annual return: 14.2% at the stated quote. About 14.2% 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: 0.38×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.05×

- FY2017: 0.04×

- FY2018: 0.04×

- FY2019: 0.04×

- FY2020: 0.06×

- FY2021: 0.08×

- FY2022: 0.10×

- FY2023: 0.10×

- FY2024: 0.09×

- FY2025: 0.11×

### moat: fail

- ROIC median below threshold

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

- ROIC, median of available years: 7.2%

- ROIC, second-lowest year: 3.0%

- Typical minus recent gross margin: 0.2 pp

- Typical gross margin (annual median): 14.5%

- Recent gross margin (lower of latest and 3-year median): 14.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 7.3%

- ROIC including acquisitions, ten-year median: 1.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 3.7%

- FY2017: 3.0%

- FY2018: 3.0%

- FY2019: 3.6%

- FY2020: 5.7%

- FY2021: 10.2%

- FY2022: 16.8%

- FY2023: 8.9%

- FY2024: 8.7%

- FY2025: 10.7%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.79×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 33B

- Net income, five-year total: CNY 41B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -2.7 pp

- Working capital / revenue, change between three-year averages: -14.3 pp

- Working capital / revenue, final three-year average: 5.2%

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

- FY2021: 1.00×

- FY2022: 0.93×

- FY2023: 0.48×

- FY2024: 0.42×

- FY2025: 1.13×

### management: fail

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

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 3.0% vs 8.9%

- Per-share earnings: 0.35 to 0.84 (three-year endpoint medians)

- 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: 11.1%

- Ordinary dilution, 5-year annual growth: 7.5%

- Market cap gain: CNY 72B

- Cumulative retained earnings: CNY 28B

- Diluted shares, 10-year annual growth: 11.1%

- Diluted shares, 5-year annual growth: 7.5%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 11.7%

- Per-share value change: CNY 0.49

- Per-share value, starting three-year median: CNY 0.35

- Per-share value, ending three-year median: CNY 0.84

- Buybacks concentrated in cheaper years (correlation): 0.10

- Average buyback yield: 0.1%

- Buyback history: 5 years

- Debt-funded buybacks: Yes

- Acquisition spending: CNY 13B

- Cumulative net income, 10 years: CNY 49B

- ROIC, first three-year median: 3.0%

- ROIC, last three-year median: 8.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.35

- FY2017: CNY 0.30

- FY2018: CNY 0.32

- FY2019: CNY 0.47

- FY2020: CNY 0.50

- FY2021: CNY 1.41

- FY2022: CNY 1.40

- FY2023: CNY 1.04

- FY2024: CNY 0.83

- FY2025: CNY 0.84

### accounting: pass

- Sloan accruals: -0.2%

- Receivables to sales index (DSRI): 0.34×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.06×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.59×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -0.2%

- FY2017: -0.2%

- FY2018: -2.4%

- FY2019: -2.0%

- FY2020: -0.2%

- FY2021: 5.6%

- FY2022: -1.0%

- FY2023: 4.6%

- FY2024: 1.6%

- FY2025: -0.2%

## Holders

## Price story

Down 43% since Apr 2023 · sales +7.3%

Story as of 2026-10-16T10:00:05.715Z; price observation 2026-10-15.

Price needs cash profits to shrink 4.8% a year for ten years

### Sales · FY2024–2025

sales +7.3%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 30B 

- FY2017: CNY 33B 

- FY2018: CNY 40B 

- FY2019: CNY 53B 

- FY2020: CNY 65B 

- FY2021: CNY 103B 

- FY2022: CNY 135B 

- FY2023: CNY 115B 

- FY2024: CNY 107B 

- FY2025: CNY 115B 

### Gross margin · FY2025

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

- FY2016: 12.5% 

- FY2017: 11.4% 

- FY2018: 10.6% 

- FY2019: 10.9% 

- FY2020: 14.7% 

- FY2021: 15.3% 

- FY2022: 17.1% 

- FY2023: 18.1% 

- FY2024: 15.6% 

- FY2025: 14.4% 

## Owner memo

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

### How it makes money

Operates in engineering & construction; annual sales are CNY 115.1 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:38.879Z); FY2025: revenue 115111412828.74; grossProfit 16526190921.66; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600039.SHG: Sichuan Road & Bridge Group Co.,Ltd engages in the investment, development, construction, and operation of engineering construction, clean energy, and mining and new materials in China and internationally. The company is involved project investment and asset management; highway management; highway, bridge, tunnel, building construction, municipal public works, highway traffic, earthwork, power, electromechanical installation, foundation, and building decoration engineering; ready-mixed concrete and precast concrete components; engineering survey and design; surveying services; planning management; engineering management services; construction machinery leasing and repair; building materials production; and wholesale and retail of goods. It also engages in the clean energy and new materials businesses, including hydropower and photovoltaic power generation; power transmission and distribution; new materials technology research and development; mineral processing; geological exploration of metallic and non-metallic mineral resources; sale of metallic ores, non-metallic minerals, non-ferrous metal alloys, and batteries; recycling and cascade utilization of waste power batteries from new energy vehicles; energy storage technology services; emerging energy technology research and development; and sale of chemical products. The company was founded in 1999 and is headquartered in Chengdu, China. Sichuan Road & Bridge Group Co.,Ltd operates as a subsidiary of Sichuan Railway Investment Group Co., Ltd.

### Why customers stay

Margins ranged from 14.4% to 18.1% during 2023–25; it earns 7.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:38.879Z); FY2023: grossProfit / revenue = 18.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:38.879Z); FY2024: grossProfit / revenue = 15.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:38.879Z); FY2025: grossProfit / revenue = 14.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:38.879Z); 10-year return on capital observations [[2016,0.037070557729037876],[2017,0.030427331572349496],[2018,0.030011946805784187],[2019,0.03587481937258282],[2020,0.0572593962207272],[2021,0.10211547959090762],[2022,0.16824111764534672],[2023,0.08876271315331173],[2024,0.08719084573637723],[2025,0.10700382234301062]]; median 0.07222512097855222. 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 2026-10-16T07:35:38.879Z); FY2020: growth capex 740436403.6186776; upkeep 4190874914.541322; owner earnings 164329085.45867777. Growth capex / owner earnings = 4.505814667877939.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:38.879Z); FY2021: growth capex 1593258452.4699998; upkeep 973726000; owner earnings 6686605909.056. Growth capex / owner earnings = 0.23827611110027755.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:38.879Z); FY2022: growth capex 1565571355.815401; upkeep 3763994693.944599; owner earnings 10414240169.273401. Growth capex / owner earnings = 0.1503298685615612.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:38.879Z); FY2023: growth capex 0; upkeep 7745804432.16; owner earnings 4287018384.444565. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:38.879Z); FY2024: growth capex 0; upkeep 7556180000; owner earnings 3049577712.254. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:38.879Z); FY2025: growth capex 0; upkeep 1142930039.29; owner earnings 8229010685.052. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:38.879Z); Dividend observations: [[2016,1438283973.51],[2017,1634372679.2],[2018,2051428439.07],[2019,180526275],[2020,259260085],[2021,1193857572],[2022,2258323627],[2023,7012161335],[2024,6101730000],[2025,4638936446.6]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 77.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600039.SHG SharesStats.PercentInsiders = 77.45 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 4.8% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:38.879Z); Ten-year compound average after fade. Initial solved rate -0.07958309947870096. Price 9.02; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -0.5260480665146385 → FY2025 0.9473065364980412. Closing-price date 2026-10-15.

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

- 2016-10: CNY 4.38 per share

- 2016-11: CNY 5.16 per share

- 2016-12: CNY 4.74 per share

- 2017-01: CNY 4.88 per share

- 2017-02: CNY 5.05 per share

- 2017-03: CNY 5.00 per share

- 2017-04: CNY 4.73 per share

- 2017-05: CNY 3.97 per share

- 2017-06: CNY 4.16 per share

- 2017-07: CNY 4.57 per share

- 2017-08: CNY 4.56 per share

- 2017-09: CNY 4.60 per share

- 2017-10: CNY 4.41 per share

- 2017-11: CNY 4.07 per share

- 2017-12: CNY 4.07 per share

- 2018-01: CNY 4.01 per share

- 2018-02: CNY 3.89 per share

- 2018-03: CNY 3.80 per share

- 2018-04: CNY 3.75 per share

- 2018-05: CNY 3.59 per share

- 2018-06: CNY 3.28 per share

- 2018-07: CNY 3.69 per share

- 2018-08: CNY 3.57 per share

- 2018-09: CNY 3.44 per share

- 2018-10: CNY 3.46 per share

- 2018-11: CNY 3.37 per share

- 2018-12: CNY 3.28 per share

- 2019-01: CNY 3.27 per share

- 2019-02: CNY 3.71 per share

- 2019-03: CNY 3.85 per share

- 2019-04: CNY 3.79 per share

- 2019-05: CNY 3.57 per share

- 2019-06: CNY 3.64 per share

- 2019-07: CNY 3.45 per share

- 2019-08: CNY 3.33 per share

- 2019-09: CNY 3.23 per share

- 2019-10: CNY 3.24 per share

- 2019-11: CNY 3.24 per share

- 2019-12: CNY 3.36 per share

- 2020-01: CNY 3.33 per share

- 2020-02: CNY 3.48 per share

- 2020-03: CNY 3.85 per share

- 2020-04: CNY 3.81 per share

- 2020-05: CNY 3.94 per share

- 2020-06: CNY 3.82 per share

- 2020-07: CNY 4.30 per share

- 2020-08: CNY 4.58 per share

- 2020-09: CNY 4.28 per share

- 2020-10: CNY 4.46 per share

- 2020-11: CNY 4.88 per share

- 2020-12: CNY 4.51 per share

- 2021-01: CNY 4.64 per share

- 2021-02: CNY 5.19 per share

- 2021-03: CNY 6.07 per share

- 2021-04: CNY 6.73 per share

- 2021-05: CNY 7.23 per share

- 2021-06: CNY 6.27 per share

- 2021-07: CNY 6.08 per share

- 2021-08: CNY 7.54 per share

- 2021-09: CNY 8.44 per share

- 2021-10: CNY 12.02 per share

- 2021-11: CNY 12.00 per share

- 2021-12: CNY 12.04 per share

- 2022-01: CNY 10.70 per share

- 2022-02: CNY 12.46 per share

- 2022-03: CNY 10.45 per share

- 2022-04: CNY 10.46 per share

- 2022-05: CNY 10.63 per share

- 2022-06: CNY 10.53 per share

- 2022-07: CNY 10.11 per share

- 2022-08: CNY 10.67 per share

- 2022-09: CNY 10.22 per share

- 2022-10: CNY 11.25 per share

- 2022-11: CNY 11.73 per share

- 2022-12: CNY 11.12 per share

- 2023-01: CNY 11.73 per share

- 2023-02: CNY 12.71 per share

- 2023-03: CNY 13.80 per share

- 2023-04: CNY 15.85 per share

- 2023-05: CNY 15.20 per share

- 2023-06: CNY 9.81 per share

- 2023-07: CNY 9.88 per share

- 2023-08: CNY 8.91 per share

- 2023-09: CNY 8.67 per share

- 2023-10: CNY 7.71 per share

- 2023-11: CNY 7.72 per share

- 2023-12: CNY 7.49 per share

- 2024-01: CNY 8.02 per share

- 2024-02: CNY 8.16 per share

- 2024-03: CNY 7.58 per share

- 2024-04: CNY 7.25 per share

- 2024-05: CNY 7.86 per share

- 2024-06: CNY 7.89 per share

- 2024-07: CNY 6.30 per share

- 2024-08: CNY 5.65 per share

- 2024-09: CNY 7.03 per share

- 2024-10: CNY 7.65 per share

- 2024-11: CNY 7.45 per share

- 2024-12: CNY 7.28 per share

- 2025-01: CNY 7.18 per share

- 2025-02: CNY 7.34 per share

- 2025-03: CNY 7.94 per share

- 2025-04: CNY 8.69 per share

- 2025-05: CNY 9.26 per share

- 2025-06: CNY 9.90 per share

- 2025-07: CNY 8.31 per share

- 2025-08: CNY 8.66 per share

- 2025-09: CNY 8.09 per share

- 2025-10: CNY 9.48 per share

- 2025-11: CNY 9.43 per share

- 2025-12: CNY 9.95 per share

- 2026-01: CNY 9.71 per share

- 2026-02: CNY 9.94 per share

- 2026-03: CNY 10.07 per share

- 2026-04: CNY 8.19 per share

- 2026-05: CNY 8.76 per share

- 2026-06: CNY 7.82 per share

- 2026-07: CNY 9.03 per share

- 2026-08: CNY 9.06 per share

- 2026-09: CNY 8.73 per share

- 2026-10: CNY 9.00 per share

## Annual estimated value (CNY per share)

- FY2022: low CNY 4.10 per share, central CNY 4.23 per share, high CNY 4.33 per share

- FY2023: low CNY 7.77 per share, central CNY 8.68 per share, high CNY 9.73 per share

- FY2024: low CNY 7.18 per share, central CNY 7.87 per share, high CNY 8.79 per share

- FY2025: low CNY 12.20 per share, central CNY 13.50 per share, high CNY 15.24 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.