# China Northern Rare Earth Group High-Tech (600111.SHG)

Canonical: https://gigainvestors.com/s/600111.SHG

Analysis as of: 2026-10-16T07:34:48.187Z. Financial observations: FY1996–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 35.14 per share; close as of 2026-10-15.

Estimated value: low CNY 11.10 per share, central CNY 15.45 per share, high CNY 17.98 per share. Buy at or below the central value CNY 15.45 per share. Valuation as of 2026-10-16T07:34:48.187Z; scenarios are not confidence intervals.

Expected annual return: 6.1% at the stated quote. About 6.1% 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

- 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: 0.65×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.04×

- FY2017: 0.08×

- FY2018: 0.06×

- FY2019: 0.05×

- FY2020: 0.06×

- FY2021: 0.22×

- FY2022: 0.20×

- FY2023: 0.09×

- FY2024: 0.06×

- 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: 6.6%

- ROIC, second-lowest year: 3.9%

- Typical minus recent gross margin: 1.6 pp

- Typical gross margin (annual median): 13.8%

- Recent gross margin (lower of latest and 3-year median): 12.2%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.4%

- ROIC including acquisitions, ten-year median: 6.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 1.3%

- FY2017: 6.1%

- FY2018: 3.9%

- FY2019: 4.3%

- FY2020: 6.6%

- FY2021: 30.0%

- FY2022: 30.4%

- FY2023: 12.3%

- FY2024: 6.7%

- FY2025: 12.6%

### economics: pass

- Owner earnings / net income, 5-yr: 0.94×

- Cash conversion uses consolidated totals: No

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

- Net income, five-year total: CNY 17B

- Return on incremental invested capital: 21.9%

- Working capital / revenue, annual change: -6.0 pp

- Working capital / revenue, change between three-year averages: -39.8 pp

- Working capital / revenue, final three-year average: 54.0%

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

- FY2021: 1.03×

- FY2022: 1.00×

- FY2023: 0.77×

- FY2024: 0.37×

- FY2025: 1.00×

### management: pass

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

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 3.9% vs 12.3%

- Per-share earnings: 0.09 to 0.62 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.3%

- Ordinary dilution, 5-year annual growth: 0.0%

- Market cap gain: CNY 121B

- Cumulative retained earnings: CNY 14B

- Diluted shares, 10-year annual growth: -0.3%

- Diluted shares, 5-year annual growth: 0.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 27.8%

- Per-share value change: CNY 0.54

- Per-share value, starting three-year median: CNY 0.09

- Per-share value, ending three-year median: CNY 0.62

- Average buyback yield: 0.5%

- Buyback history: 1 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 857M

- Cumulative net income, 10 years: CNY 19B

- ROIC, first three-year median: 3.9%

- ROIC, last three-year median: 12.3%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.02

- FY2017: CNY 0.11

- FY2018: CNY 0.16

- FY2019: CNY 0.17

- FY2020: CNY 0.25

- FY2021: CNY 1.42

- FY2022: CNY 1.66

- FY2023: CNY 0.66

- FY2024: CNY 0.28

- FY2025: CNY 0.62

### accounting: pass

- Sloan accruals: 2.4%

- Receivables to sales index (DSRI): 0.37×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.50×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.05×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -0.1%

- FY2017: 10.7%

- FY2018: 5.4%

- FY2019: -1.2%

- FY2020: 1.3%

- FY2021: 3.9%

- FY2022: 3.4%

- FY2023: -0.1%

- FY2024: -0.0%

- FY2025: 2.4%

## Holders

## Price story

Down 44% since Feb 2026 · sales +29.1%

Story as of 2026-10-16T10:00:02.560Z; price observation 2026-10-15.

Price needs cash profits to grow 17.5% a year for ten years

### Sales · FY2024–2025

sales +29.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 5.1B 

- FY2017: CNY 10B 

- FY2018: CNY 14B 

- FY2019: CNY 18B 

- FY2020: CNY 22B 

- FY2021: CNY 30B 

- FY2022: CNY 37B 

- FY2023: CNY 33B 

- FY2024: CNY 33B 

- FY2025: CNY 43B 

### Gross margin · FY2025

gross margin 12.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 20.8% 

- FY2017: 17.2% 

- FY2018: 13.9% 

- FY2019: 11.3% 

- FY2020: 12.5% 

- FY2021: 27.7% 

- FY2022: 25.7% 

- FY2023: 13.6% 

- FY2024: 9.4% 

- FY2025: 12.2% 

## Owner memo

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

### How it makes money

Operates in other industrial metals & mining; annual sales are CNY 42.6 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:48.187Z); FY2025: revenue 42563083233.34; grossProfit 5195789113.56; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600111.SHG: China Northern Rare Earth (Group) High-Tech Co.,Ltd produces and sells rare earth metals in China and internationally. The company offers rare earth salts, rare earth oxides, and rare earth golds. It also provides rare earth new material products, such as rare earth magnetic, polishing, hydrogen storage, and catalytic materials; rare earth composites; rare earth alloys; and rare earth end-use products comprising earth permanent magnet high-efficiency energy-saving motors, solid-state hydrogen-powered two-wheeled vehicles, etc. The company was formerly known as Inner Mongolia Baotou Steel Rare-Earth (Group) Hi-Tech Co., Ltd. and changed its name to China Northern Rare Earth (Group) High-Tech Co.,Ltd in January 2015. China Northern Rare Earth (Group) High-Tech Co.,Ltd was founded in 1961 and is headquartered in Baotou, China.

### Why customers stay

Margins ranged from 9.4% to 13.6% during 2023–25; it earns 6.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:48.187Z); FY2023: grossProfit / revenue = 13.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:48.187Z); FY2024: grossProfit / revenue = 9.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:48.187Z); FY2025: grossProfit / revenue = 12.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:48.187Z); 10-year return on capital observations [[2016,0.013472852479887715],[2017,0.06059172249377318],[2018,0.03868726675048524],[2019,0.042929212182291],[2020,0.06561841236216824],[2021,0.30041352515458514],[2022,0.30412849815701853],[2023,0.12296050899317619],[2024,0.06731905298714537],[2025,0.12647966005665295]]; median 0.0664687326746568. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 15% of cash earnings on expansion; earns 21.9% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:48.187Z); FY2016: growth capex 0; upkeep 151165688.29; owner earnings 178992794.71. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:48.187Z); FY2017: growth capex 0; upkeep 216022694.62; owner earnings 459180308.38. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:48.187Z); FY2018: growth capex 0; upkeep 188256127.2; owner earnings 742851452.8. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:48.187Z); FY2019: growth capex 0; upkeep 206537382.44; owner earnings 776213019.56. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:48.187Z); FY2020: growth capex 0; upkeep 151445572.29; owner earnings 1167026746.71. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:48.187Z); FY2021: growth capex 0; upkeep 328834183.1; owner earnings 5269176186.034. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:48.187Z); FY2022: growth capex 564040272.57; upkeep 450780884; owner earnings 5983298939.812667. Growth capex / owner earnings = 0.09426911111141302.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:48.187Z); FY2023: growth capex 0; upkeep 1113703402; owner earnings 1828597340.8501744. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:48.187Z); FY2024: growth capex 0; upkeep 1688407505; owner earnings 372828544.08137214. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:48.187Z); FY2025: growth capex 336774743.0700002; upkeep 968908487.56; owner earnings 2246401246.7901363. Growth capex / owner earnings = 0.14991744843055743.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:48.187Z); Incremental return on capital 0.21941178062596603, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:48.187Z); Dividend observations: [[2016,209129220.5],[2017,213888558.78],[2018,542778807.32],[2019,181653300],[2020,343153427.65],[2021,253054608],[2022,1608704299],[2023,614561193],[2024,505408911],[2025,351080813.6]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 41.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600111.SHG SharesStats.PercentInsiders = 41.892 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 17.5% yearly over ten years; actual growth was 18.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:48.187Z); Ten-year compound average after fade. Initial solved rate 0.24006070954248837. Price 35.14; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.11168229768675246 → FY2025 0.621352733337382. Closing-price date 2026-10-15.

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

- 2016-10: CNY 12.56 per share

- 2016-11: CNY 12.99 per share

- 2016-12: CNY 12.27 per share

- 2017-01: CNY 12.50 per share

- 2017-02: CNY 12.88 per share

- 2017-03: CNY 12.11 per share

- 2017-04: CNY 11.39 per share

- 2017-05: CNY 10.96 per share

- 2017-06: CNY 11.33 per share

- 2017-07: CNY 18.61 per share

- 2017-08: CNY 18.09 per share

- 2017-09: CNY 16.13 per share

- 2017-10: CNY 14.52 per share

- 2017-11: CNY 14.19 per share

- 2017-12: CNY 14.59 per share

- 2018-01: CNY 13.44 per share

- 2018-02: CNY 13.09 per share

- 2018-03: CNY 13.01 per share

- 2018-04: CNY 12.55 per share

- 2018-05: CNY 12.09 per share

- 2018-06: CNY 11.38 per share

- 2018-07: CNY 11.11 per share

- 2018-08: CNY 10.24 per share

- 2018-09: CNY 10.23 per share

- 2018-10: CNY 10.50 per share

- 2018-11: CNY 9.73 per share

- 2018-12: CNY 8.77 per share

- 2019-01: CNY 8.55 per share

- 2019-02: CNY 10.66 per share

- 2019-03: CNY 11.15 per share

- 2019-04: CNY 10.97 per share

- 2019-05: CNY 13.13 per share

- 2019-06: CNY 12.84 per share

- 2019-07: CNY 11.24 per share

- 2019-08: CNY 11.62 per share

- 2019-09: CNY 10.87 per share

- 2019-10: CNY 10.05 per share

- 2019-11: CNY 9.94 per share

- 2019-12: CNY 10.84 per share

- 2020-01: CNY 10.14 per share

- 2020-02: CNY 9.10 per share

- 2020-03: CNY 8.99 per share

- 2020-04: CNY 9.03 per share

- 2020-05: CNY 10.15 per share

- 2020-06: CNY 9.32 per share

- 2020-07: CNY 12.41 per share

- 2020-08: CNY 12.35 per share

- 2020-09: CNY 10.74 per share

- 2020-10: CNY 10.07 per share

- 2020-11: CNY 13.54 per share

- 2020-12: CNY 13.09 per share

- 2021-01: CNY 17.80 per share

- 2021-02: CNY 20.69 per share

- 2021-03: CNY 19.12 per share

- 2021-04: CNY 20.35 per share

- 2021-05: CNY 21.97 per share

- 2021-06: CNY 20.70 per share

- 2021-07: CNY 47.70 per share

- 2021-08: CNY 58.03 per share

- 2021-09: CNY 44.27 per share

- 2021-10: CNY 50.60 per share

- 2021-11: CNY 53.82 per share

- 2021-12: CNY 45.80 per share

- 2022-01: CNY 37.18 per share

- 2022-02: CNY 49.21 per share

- 2022-03: CNY 38.73 per share

- 2022-04: CNY 31.68 per share

- 2022-05: CNY 34.83 per share

- 2022-06: CNY 35.16 per share

- 2022-07: CNY 31.38 per share

- 2022-08: CNY 30.14 per share

- 2022-09: CNY 26.56 per share

- 2022-10: CNY 24.20 per share

- 2022-11: CNY 26.17 per share

- 2022-12: CNY 25.05 per share

- 2023-01: CNY 29.03 per share

- 2023-02: CNY 29.05 per share

- 2023-03: CNY 26.09 per share

- 2023-04: CNY 25.16 per share

- 2023-05: CNY 23.86 per share

- 2023-06: CNY 23.98 per share

- 2023-07: CNY 24.68 per share

- 2023-08: CNY 22.08 per share

- 2023-09: CNY 21.79 per share

- 2023-10: CNY 20.90 per share

- 2023-11: CNY 19.84 per share

- 2023-12: CNY 19.34 per share

- 2024-01: CNY 16.88 per share

- 2024-02: CNY 18.85 per share

- 2024-03: CNY 19.37 per share

- 2024-04: CNY 19.30 per share

- 2024-05: CNY 18.90 per share

- 2024-06: CNY 17.20 per share

- 2024-07: CNY 17.48 per share

- 2024-08: CNY 16.82 per share

- 2024-09: CNY 20.63 per share

- 2024-10: CNY 21.46 per share

- 2024-11: CNY 22.85 per share

- 2024-12: CNY 21.22 per share

- 2025-01: CNY 21.05 per share

- 2025-02: CNY 22.37 per share

- 2025-03: CNY 22.66 per share

- 2025-04: CNY 23.29 per share

- 2025-05: CNY 23.27 per share

- 2025-06: CNY 24.90 per share

- 2025-07: CNY 37.50 per share

- 2025-08: CNY 56.81 per share

- 2025-09: CNY 48.30 per share

- 2025-10: CNY 50.81 per share

- 2025-11: CNY 45.00 per share

- 2025-12: CNY 46.12 per share

- 2026-01: CNY 51.59 per share

- 2026-02: CNY 62.40 per share

- 2026-03: CNY 47.68 per share

- 2026-04: CNY 53.04 per share

- 2026-05: CNY 48.62 per share

- 2026-06: CNY 48.05 per share

- 2026-07: CNY 39.70 per share

- 2026-08: CNY 40.62 per share

- 2026-09: CNY 35.30 per share

- 2026-10: CNY 36.07 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 2.63 per share, central CNY 2.89 per share, high CNY 3.24 per share

- FY2017: low CNY 3.40 per share, central CNY 3.84 per share, high CNY 4.25 per share

- FY2018: low CNY 3.15 per share, central CNY 3.60 per share, high CNY 4.06 per share

- FY2019: low CNY 3.41 per share, central CNY 4.24 per share, high CNY 4.86 per share

- FY2020: low CNY 3.96 per share, central CNY 4.37 per share, high CNY 4.92 per share

- FY2021: low CNY 6.74 per share, central CNY 7.45 per share, high CNY 8.35 per share

- FY2022: low CNY 8.56 per share, central CNY 11.76 per share, high CNY 13.62 per share

- FY2023: low CNY 7.07 per share, central CNY 8.24 per share, high CNY 9.39 per share

- FY2024: low CNY 6.40 per share, central CNY 7.15 per share, high CNY 8.15 per share

- FY2025: low CNY 9.67 per share, central CNY 13.42 per share, high CNY 15.60 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.