# Shandong Nanshan Aluminium (600219.SHG)

Canonical: https://gigainvestors.com/s/600219.SHG

Analysis as of: 2026-10-16T07:36:32.976Z. 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 4.30 per share; close as of 2026-10-15.

Estimated value: low CNY 6.64 per share, central CNY 8.35 per share, high CNY 9.49 per share. Buy at or below the central value CNY 8.35 per share. Valuation as of 2026-10-16T07:36:32.976Z; scenarios are not confidence intervals.

Expected annual return: 20.5% at the stated quote. About 20.5% 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: pass

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

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.24×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.13×

- FY2017: 0.13×

- FY2018: 0.09×

- FY2019: 0.09×

- FY2020: 0.12×

- FY2021: 0.14×

- FY2022: 0.12×

- FY2023: 0.15×

- FY2024: 0.20×

- FY2025: 0.18×

### moat: fail

- ROIC median below threshold

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

- ROIC, median of available years: 9.0%

- ROIC, second-lowest year: 4.1%

- Typical minus recent gross margin: -1.6 pp

- Typical gross margin (annual median): 22.6%

- Recent gross margin (lower of latest and 3-year median): 24.2%

- Years with nonpositive capital: 0

- Capital spending / revenue: 8.5%

- ROIC including acquisitions, ten-year median: 9.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 4.1%

- FY2017: 5.2%

- FY2018: 3.9%

- FY2019: 5.1%

- FY2020: 6.8%

- FY2021: 11.3%

- FY2022: 12.5%

- FY2023: 13.6%

- FY2024: 19.5%

- FY2025: 17.9%

### economics: pass

- Owner earnings / net income, 5-yr: 1.05×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 21B

- Net income, five-year total: CNY 20B

- Return on incremental invested capital: 60.7%

- Working capital / revenue, annual change: -1.2 pp

- Working capital / revenue, change between three-year averages: -8.6 pp

- Working capital / revenue, final three-year average: 28.4%

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

- FY2021: 1.25×

- FY2022: 1.18×

- FY2023: 1.01×

- FY2024: 1.00×

- FY2025: 0.87×

### 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: 4.1% vs 17.9%

- Per-share earnings: 0.13 to 0.41 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 3.3%

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

- Market cap gain: CNY 34B

- Cumulative retained earnings: CNY 14B

- Diluted shares, 10-year annual growth: 3.3%

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

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 15.1%

- Per-share value change: CNY 0.28

- Per-share value, starting three-year median: CNY 0.13

- Per-share value, ending three-year median: CNY 0.41

- Buybacks concentrated in cheaper years (correlation): 0.40

- Average buyback yield: 0.9%

- Buyback history: 4 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 1.0B

- Cumulative net income, 10 years: CNY 28B

- ROIC, first three-year median: 4.1%

- ROIC, last three-year median: 17.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.13

- FY2017: CNY 0.15

- FY2018: CNY 0.14

- FY2019: CNY 0.16

- FY2020: CNY 0.18

- FY2021: CNY 0.28

- FY2022: CNY 0.30

- FY2023: CNY 0.30

- FY2024: CNY 0.41

- FY2025: CNY 0.41

### accounting: pass

- Sloan accruals: -3.9%

- Receivables to sales index (DSRI): 0.73×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.59×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.04×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -1.4%

- FY2017: -0.4%

- FY2018: -1.4%

- FY2019: -4.0%

- FY2020: -6.8%

- FY2021: -1.6%

- FY2022: -4.9%

- FY2023: -1.1%

- FY2024: -4.0%

- FY2025: -3.9%

## Holders

## Price story

Down 41% since Jan 2026 · sales +3.3%

Story as of 2026-10-16T10:00:07.683Z; price observation 2026-10-15.

Price needs cash profits to shrink 6.9% a year for ten years

### Sales · FY2024–2025

sales +3.3%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 13B 

- FY2017: CNY 17B 

- FY2018: CNY 20B 

- FY2019: CNY 22B 

- FY2020: CNY 22B 

- FY2021: CNY 29B 

- FY2022: CNY 35B 

- FY2023: CNY 29B 

- FY2024: CNY 33B 

- FY2025: CNY 35B 

### Gross margin · FY2025

gross margin 24.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 22.7% 

- FY2017: 22.5% 

- FY2018: 17.4% 

- FY2019: 21.5% 

- FY2020: 23.7% 

- FY2021: 24.6% 

- FY2022: 20.9% 

- FY2023: 20.3% 

- FY2024: 27.2% 

- FY2025: 24.2% 

## Owner memo

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

### How it makes money

Operates in aluminum; annual sales are CNY 34.6 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:32.976Z); FY2025: revenue 34566836000; grossProfit 8378460000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600219.SHG: Shandong Nanshan Aluminium Co.,Ltd. engages in the aluminum processing business worldwide. The company offers upstream products, such as power generation, alumina, aluminum alloy ingots, and aluminum foil, as well as downstream products, including aluminum sheets and strips, which consist of automotive sheets, aviation sheets, and can materials; and industrial and building aluminum profiles. It also engages in the production of various aluminum alloy hot-rolled coils and new alloy products; research and development of high-tech projects and technology transfer; sale of building materials; laboratory testing of materials and its products; processing and refining bauxite; medical business; research, development, production, and sale of aviation and aerospace components; and metal scrap and shavings processing. In addition, the company is involved in the recycling of industrial waste metals; sale of non-ferrous metal alloys; health consultation services, engineering management services, and human resource management services; non-ferrous metal milling; research, development, production, and sale of chlor-alkali chemical products; trade of chemical products; sale of photovoltaic power generation; and sale of metal materials and ores. Its products are used in aviation, automotive, rail transportation, shipbuilding, energy, petrochemical, container, industrial profiles, high-quality civil profiles, high-end system doors and windows, containers, food packaging, battery foil, and deep aluminum processing fields. The company was formerly known as Shandong Nanshan Industrial Co., Ltd. and changed its name to Shandong Nanshan Aluminium Co.,Ltd. in March 2006. Shandong Nanshan Aluminium Co.,Ltd. was incorporated in 1993 and is headquartered in Longkou, China.

### Why customers stay

Margins ranged from 20.3% to 27.2% during 2023–25; it earns 9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:32.976Z); FY2023: grossProfit / revenue = 20.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:32.976Z); FY2024: grossProfit / revenue = 27.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:32.976Z); FY2025: grossProfit / revenue = 24.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:32.976Z); 10-year return on capital observations [[2016,0.0414454828304043],[2017,0.05155751337192136],[2018,0.03924546508204289],[2019,0.05063673339505577],[2020,0.06783272282158713],[2021,0.1127258202158011],[2022,0.12486526609640426],[2023,0.13563118326070356],[2024,0.19536197035492306],[2025,0.17880785890073714]]; median 0.09027927151869411. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 22.6% of cash earnings on expansion; earns 60.7% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:32.976Z); FY2016: growth capex 0; upkeep 1920734239.11; owner earnings 1018625075.8900001. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:32.976Z); FY2017: growth capex 0; upkeep 1369736631.28; owner earnings 2162176429.7200003. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:32.976Z); FY2018: growth capex 0; upkeep 1730333294.18; owner earnings 1697698048.82. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:32.976Z); FY2019: growth capex 704007380.4099998; upkeep 1980568220; owner earnings 1622717125. Growth capex / owner earnings = 0.433844796214867.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:32.976Z); FY2020: growth capex 786914039.02; upkeep 2059200720; owner earnings 2049448027. Growth capex / owner earnings = 0.3839638910833429.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:32.976Z); FY2021: growth capex 0; upkeep 1197510650.23; owner earnings 4275197987.77. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:32.976Z); FY2022: growth capex 0; upkeep 1594983043.79; owner earnings 4155446813.042. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:32.976Z); FY2023: growth capex 0; upkeep 2202734627.56; owner earnings 3519817243.9204965. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:32.976Z); FY2024: growth capex 484181176; upkeep 2310802000; owner earnings 4828167369.24369. Growth capex / owner earnings = 0.10028259978813552.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:32.976Z); FY2025: growth capex 933512759.304275; upkeep 2949098352.695725; owner earnings 4124750245.0522256. Growth capex / owner earnings = 0.2263198263759253.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:32.976Z); Incremental return on capital 0.607212697380025, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:32.976Z); Dividend observations: [[2016,416201395.55],[2017,632691002.65],[2018,884635787],[2019,597524076],[2020,597524076],[2021,657276483],[2022,745360960],[2023,767031978.25],[2024,2514145991.6],[2025,4475967782]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:32.976Z); FY2025: cash repurchases 550010014 CNY.

### Are managers owners

Insiders own 41.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600219.SHG SharesStats.PercentInsiders = 41.533 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 6.9% yearly over ten years; actual growth was 14.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:32.976Z); Ten-year compound average after fade. Initial solved rate -0.10910306118464258. Price 4.3; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.09316465011139512 → FY2025 0.35918298722184017. Closing-price date 2026-10-15.

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

- 2016-11: CNY 3.12 per share

- 2016-12: CNY 2.83 per share

- 2017-01: CNY 3.18 per share

- 2017-02: CNY 3.10 per share

- 2017-03: CNY 3.00 per share

- 2017-04: CNY 3.16 per share

- 2017-05: CNY 2.94 per share

- 2017-06: CNY 3.11 per share

- 2017-07: CNY 3.37 per share

- 2017-08: CNY 3.67 per share

- 2017-09: CNY 3.66 per share

- 2017-10: CNY 3.55 per share

- 2017-11: CNY 3.39 per share

- 2017-12: CNY 3.38 per share

- 2018-01: CNY 3.24 per share

- 2018-02: CNY 3.09 per share

- 2018-03: CNY 2.92 per share

- 2018-04: CNY 2.90 per share

- 2018-05: CNY 2.70 per share

- 2018-06: CNY 2.49 per share

- 2018-07: CNY 2.62 per share

- 2018-08: CNY 2.49 per share

- 2018-09: CNY 2.55 per share

- 2018-10: CNY 2.43 per share

- 2018-11: CNY 2.26 per share

- 2018-12: CNY 2.11 per share

- 2019-01: CNY 2.13 per share

- 2019-02: CNY 2.56 per share

- 2019-03: CNY 2.67 per share

- 2019-04: CNY 2.51 per share

- 2019-05: CNY 2.30 per share

- 2019-06: CNY 2.26 per share

- 2019-07: CNY 2.20 per share

- 2019-08: CNY 2.15 per share

- 2019-09: CNY 2.12 per share

- 2019-10: CNY 2.11 per share

- 2019-11: CNY 2.16 per share

- 2019-12: CNY 2.24 per share

- 2020-01: CNY 2.24 per share

- 2020-02: CNY 2.12 per share

- 2020-03: CNY 2.06 per share

- 2020-04: CNY 2.09 per share

- 2020-05: CNY 2.03 per share

- 2020-06: CNY 2.03 per share

- 2020-07: CNY 2.37 per share

- 2020-08: CNY 2.66 per share

- 2020-09: CNY 2.28 per share

- 2020-10: CNY 2.35 per share

- 2020-11: CNY 2.88 per share

- 2020-12: CNY 3.16 per share

- 2021-01: CNY 3.33 per share

- 2021-02: CNY 4.12 per share

- 2021-03: CNY 3.45 per share

- 2021-04: CNY 3.82 per share

- 2021-05: CNY 4.02 per share

- 2021-06: CNY 3.60 per share

- 2021-07: CNY 5.12 per share

- 2021-08: CNY 5.77 per share

- 2021-09: CNY 4.37 per share

- 2021-10: CNY 4.32 per share

- 2021-11: CNY 4.39 per share

- 2021-12: CNY 4.71 per share

- 2022-01: CNY 4.29 per share

- 2022-02: CNY 4.86 per share

- 2022-03: CNY 4.07 per share

- 2022-04: CNY 3.26 per share

- 2022-05: CNY 3.55 per share

- 2022-06: CNY 3.69 per share

- 2022-07: CNY 3.50 per share

- 2022-08: CNY 3.39 per share

- 2022-09: CNY 3.01 per share

- 2022-10: CNY 3.08 per share

- 2022-11: CNY 3.50 per share

- 2022-12: CNY 3.27 per share

- 2023-01: CNY 3.61 per share

- 2023-02: CNY 3.61 per share

- 2023-03: CNY 3.39 per share

- 2023-04: CNY 3.39 per share

- 2023-05: CNY 3.01 per share

- 2023-06: CNY 3.02 per share

- 2023-07: CNY 3.24 per share

- 2023-08: CNY 3.12 per share

- 2023-09: CNY 3.14 per share

- 2023-10: CNY 3.10 per share

- 2023-11: CNY 2.88 per share

- 2023-12: CNY 2.94 per share

- 2024-01: CNY 2.87 per share

- 2024-02: CNY 3.10 per share

- 2024-03: CNY 3.40 per share

- 2024-04: CNY 3.58 per share

- 2024-05: CNY 3.85 per share

- 2024-06: CNY 3.81 per share

- 2024-07: CNY 3.62 per share

- 2024-08: CNY 3.67 per share

- 2024-09: CNY 4.38 per share

- 2024-10: CNY 4.08 per share

- 2024-11: CNY 4.00 per share

- 2024-12: CNY 3.91 per share

- 2025-01: CNY 4.06 per share

- 2025-02: CNY 3.72 per share

- 2025-03: CNY 3.81 per share

- 2025-04: CNY 3.65 per share

- 2025-05: CNY 3.75 per share

- 2025-06: CNY 3.83 per share

- 2025-07: CNY 3.93 per share

- 2025-08: CNY 4.06 per share

- 2025-09: CNY 3.96 per share

- 2025-10: CNY 4.61 per share

- 2025-11: CNY 4.71 per share

- 2025-12: CNY 5.38 per share

- 2026-01: CNY 7.34 per share

- 2026-02: CNY 7.08 per share

- 2026-03: CNY 6.13 per share

- 2026-04: CNY 5.37 per share

- 2026-05: CNY 5.20 per share

- 2026-06: CNY 3.99 per share

- 2026-07: CNY 4.72 per share

- 2026-08: CNY 4.84 per share

- 2026-09: CNY 4.71 per share

- 2026-10: CNY 4.90 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 1.07 per share, central CNY 1.16 per share, high CNY 1.28 per share

- FY2017: low CNY 1.49 per share, central CNY 1.63 per share, high CNY 1.81 per share

- FY2018: low CNY 2.19 per share, central CNY 2.42 per share, high CNY 2.72 per share

- FY2019: low CNY 3.21 per share, central CNY 3.65 per share, high CNY 4.04 per share

- FY2020: low CNY 2.99 per share, central CNY 3.31 per share, high CNY 3.67 per share

- FY2021: low CNY 3.87 per share, central CNY 4.20 per share, high CNY 4.64 per share

- FY2022: low CNY 4.73 per share, central CNY 5.15 per share, high CNY 5.71 per share

- FY2023: low CNY 5.12 per share, central CNY 5.56 per share, high CNY 6.15 per share

- FY2024: low CNY 5.69 per share, central CNY 6.39 per share, high CNY 7.15 per share

- FY2025: low CNY 5.71 per share, central CNY 6.26 per share, high CNY 7.00 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 2026-10-15T06:42:01.274Z 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.