# China Avionics Systems (600372.SHG)

Canonical: https://gigainvestors.com/s/600372.SHG

Analysis as of: 2026-10-16T07:36:20.288Z. Financial observations: FY1998–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 10.99 per share; close as of 2026-10-15.

Estimated value: low CNY 5.39 per share, central CNY 5.87 per share, high CNY 6.52 per share. Buy at or below the central value CNY 5.87 per share. Valuation as of 2026-10-16T07:36:20.288Z; scenarios are not confidence intervals.

Expected annual return: 6.0% at the stated quote. About 6.0% 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

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.16×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.07×

- FY2017: 0.09×

- FY2018: 0.06×

- FY2019: 0.07×

- FY2020: 0.08×

- FY2021: 0.09×

- FY2022: 0.07×

- FY2023: 0.08×

- FY2024: 0.05×

- FY2025: 0.05×

### moat: fail

- ROIC median below threshold

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

- ROIC, median of available years: 5.1%

- ROIC, second-lowest year: 3.4%

- Typical minus recent gross margin: 2.1 pp

- Typical gross margin (annual median): 28.7%

- Recent gross margin (lower of latest and 3-year median): 26.6%

- Years with nonpositive capital: 0

- Capital spending / revenue: 8.9%

- ROIC including acquisitions, ten-year median: 2.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 4.7%

- FY2017: 5.3%

- FY2018: 3.4%

- FY2019: 5.0%

- FY2020: 6.3%

- FY2021: 7.0%

- FY2022: 12.0%

- FY2023: 7.0%

- FY2024: 3.4%

- FY2025: 2.7%

### economics: fail

- incremental invested capital return below threshold

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 0.96×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 5.9B

- Net income, five-year total: CNY 6.1B

- Return on incremental invested capital: 2.6%

- Working capital / revenue, annual change: 2.5 pp

- Working capital / revenue, change between three-year averages: 22.6 pp

- Working capital / revenue, final three-year average: 108.2%

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

- FY2021: 1.00×

- FY2022: 1.66×

- FY2023: 1.00×

- FY2024: 0.38×

- FY2025: 0.55×

### 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: 4.7% vs 3.4%

- Per-share earnings: 0.29 to 0.22 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- 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: 9.6%

- Ordinary dilution, 5-year annual growth: 15.8%

- Market cap gain: CNY 36B

- Cumulative retained earnings: CNY 8.9B

- Diluted shares, 10-year annual growth: 9.6%

- Diluted shares, 5-year annual growth: 15.8%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -3.5%

- Per-share value change: CNY -0.07

- Per-share value, starting three-year median: CNY 0.29

- Per-share value, ending three-year median: CNY 0.22

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 0.5%

- Buyback history: 2 years

- Debt-funded buybacks: Yes

- Acquisition spending: CNY 1.4B

- Cumulative net income, 10 years: CNY 8.8B

- ROIC, first three-year median: 4.7%

- ROIC, last three-year median: 3.4%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.29

- FY2017: CNY 0.36

- FY2018: CNY 0.29

- FY2019: CNY 0.32

- FY2020: CNY 0.27

- FY2021: CNY 0.41

- FY2022: CNY 0.70

- FY2023: CNY 0.39

- FY2024: CNY 0.22

- FY2025: CNY 0.22

### accounting: pass

- Sloan accruals: 0.9%

- Receivables to sales index (DSRI): 1.05×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.27×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.05×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 3.2%

- FY2017: 3.0%

- FY2018: 2.1%

- FY2019: -0.8%

- FY2020: -0.7%

- FY2021: -2.9%

- FY2022: 7.6%

- FY2023: 3.9%

- FY2024: 3.9%

- FY2025: 0.9%

## Holders

## Price story

Down 51% since Dec 2021 · sales +0.5%

Story as of 2026-10-16T10:00:07.227Z; price observation 2026-10-15.

Price needs cash profits to grow 11.3% a year for ten years

### Sales · FY2024–2025

sales +0.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 7.0B 

- FY2017: CNY 7.0B 

- FY2018: CNY 7.6B 

- FY2019: CNY 8.4B 

- FY2020: CNY 8.7B 

- FY2021: CNY 9.8B 

- FY2022: CNY 28B 

- FY2023: CNY 29B 

- FY2024: CNY 24B 

- FY2025: CNY 24B 

### Gross margin · FY2025

gross margin 26.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 32.1% 

- FY2017: 31.7% 

- FY2018: 28.8% 

- FY2019: 29.1% 

- FY2020: 28.7% 

- FY2021: 28.2% 

- FY2022: 28.1% 

- FY2023: 29.1% 

- FY2024: 27.5% 

- FY2025: 26.6% 

## Owner memo

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

### How it makes money

Operates in aerospace & defense; annual sales are CNY 24 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:20.288Z); FY2025: revenue 23990501197; grossProfit 6384988661; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600372.SHG: AVIC Airborne Systems Co., Ltd. Manufactures aviation products in China. The company offers avionics systems, flight control systems, and electromechanical systems; mechanical and electronic engineering, avionics, in the fields of aviation, aerospace, shipbuilding, and weapons; automatic control, inertial navigation, electronic information, radar and fire control systems, electronic countermeasures, air traffic control, flight data, integrated imaging; instruments, meters and basic components; communication networks, electronic information and integrated circuits. It also provides roads, smart cities and the internet of things, industrial automation, industrial safety, rail transit, energy conservation and environmental protection and new energy electronics, intelligent equipment; equipment, sensors, motors, textile machinery, optical instruments. In addition, the company engages in research, development, production, sales, and service of electronic equipment, electromechanical equipment and sensors for various aircraft engines; automotive parts and systems, industrial automation and control equipment, intelligent systems and equipment, and mechanical manufacturing equipment; refrigeration systems; software and information products; and software, security and service system products. It also exports its products. The company was formerly known as China Avionics Systems Co.,Ltd. and changed its name to AVIC Airborne Systems Co., Ltd.in August 2023. AVIC Airborne Systems Co., Ltd. was founded in 1999 and is based in Beijing, China.

### Why customers stay

Margins ranged from 26.6% to 29.1% during 2023–25; it earns 5.1% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:20.288Z); FY2023: grossProfit / revenue = 29.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:20.288Z); FY2024: grossProfit / revenue = 27.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:20.288Z); FY2025: grossProfit / revenue = 26.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:20.288Z); 10-year return on capital observations [[2016,0.046509891233750676],[2017,0.052742101192008985],[2018,0.03435877707590758],[2019,0.049543237035602344],[2020,0.0632281277411492],[2021,0.06992158703230321],[2022,0.12042060262161063],[2023,0.07028165559047256],[2024,0.03397521325634819],[2025,0.027352144828426156]]; median 0.05114266911380566. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 28% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:20.288Z); Gross margin observations: [[2021,0.28203001204236317],[2022,0.28129205431591925],[2023,0.290676214824731]]; range within 2 percentage points.

### Where the cash goes

Spends 8.7% of cash earnings on expansion; earns 2.6% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:20.288Z); FY2016: growth capex 68166253.35055482; upkeep 560727976.3094451; owner earnings 215515468.69055486. Growth capex / owner earnings = 0.3162940171521074.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:20.288Z); FY2017: growth capex 32795129.40650654; upkeep 633143556.2834935; owner earnings 243740275.71650648. Growth capex / owner earnings = 0.13454948842615755.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:20.288Z); FY2018: growth capex 324368699.8326388; upkeep 525619573.74736124; owner earnings 291733682.25263876. Growth capex / owner earnings = 1.1118657856988157.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:20.288Z); FY2019: growth capex 375705061.6084721; upkeep 407541457.9015279; owner earnings 549790895.0984721. Growth capex / owner earnings = 0.6833599191219422.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:20.288Z); FY2020: growth capex 215295686.24797904; upkeep 665423073.9020209; owner earnings 335204162.09797907. Growth capex / owner earnings = 0.6422822583719854.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:20.288Z); FY2021: growth capex 369838996.21000004; upkeep 450547335; owner earnings 796757121.464. Growth capex / owner earnings = 0.46418034586304047.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:20.288Z); FY2022: growth capex 0; upkeep 507187701.26; owner earnings 2248767798.826. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:20.288Z); FY2023: growth capex 0; upkeep 1435437741; owner earnings 1889927554.714. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:20.288Z); FY2024: growth capex 0; upkeep 1998054234; owner earnings 392359016.34599996. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:20.288Z); FY2025: growth capex 50729373.23135114; upkeep 2055137553.7686489; owner earnings 582630762.3893511. Growth capex / owner earnings = 0.08706950697781818.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:20.288Z); Incremental return on capital 0.02587580836142243, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:20.288Z); Dividend observations: [[2016,325803222.85],[2017,311559394.91],[2018,345985961.57],[2019,87697482],[2020,105697674],[2021,191805373],[2022,496101253.57],[2023,856678661.6],[2024,874839950],[2025,446177815]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:20.288Z); FY2025: cash repurchases 199965620 CNY.

### Are managers owners

Insiders own 56.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600372.SHG SharesStats.PercentInsiders = 56.577999999999996 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 11.3% yearly over ten years; actual decline was 3.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:20.288Z); Ten-year compound average after fade. Initial solved rate 0.14962811762066963. Price 10.99; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.1790320566146375 → FY2025 0.12080560652509723. Closing-price date 2026-10-15.

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

- 2016-10: CNY 19.22 per share

- 2016-11: CNY 19.42 per share

- 2016-12: CNY 18.56 per share

- 2017-01: CNY 20.43 per share

- 2017-02: CNY 20.15 per share

- 2017-03: CNY 19.30 per share

- 2017-04: CNY 18.58 per share

- 2017-05: CNY 15.03 per share

- 2017-06: CNY 17.37 per share

- 2017-07: CNY 15.84 per share

- 2017-08: CNY 16.47 per share

- 2017-09: CNY 16.25 per share

- 2017-10: CNY 15.37 per share

- 2017-11: CNY 14.23 per share

- 2017-12: CNY 13.69 per share

- 2018-01: CNY 13.22 per share

- 2018-02: CNY 13.36 per share

- 2018-03: CNY 15.60 per share

- 2018-04: CNY 14.58 per share

- 2018-05: CNY 13.63 per share

- 2018-06: CNY 13.06 per share

- 2018-07: CNY 14.49 per share

- 2018-08: CNY 12.87 per share

- 2018-09: CNY 14.46 per share

- 2018-10: CNY 13.57 per share

- 2018-11: CNY 15.07 per share

- 2018-12: CNY 12.98 per share

- 2019-01: CNY 13.41 per share

- 2019-02: CNY 16.51 per share

- 2019-03: CNY 16.62 per share

- 2019-04: CNY 15.93 per share

- 2019-05: CNY 14.99 per share

- 2019-06: CNY 14.84 per share

- 2019-07: CNY 15.15 per share

- 2019-08: CNY 14.97 per share

- 2019-09: CNY 14.20 per share

- 2019-10: CNY 14.05 per share

- 2019-11: CNY 13.68 per share

- 2019-12: CNY 14.24 per share

- 2020-01: CNY 14.35 per share

- 2020-02: CNY 14.13 per share

- 2020-03: CNY 12.92 per share

- 2020-04: CNY 13.85 per share

- 2020-05: CNY 13.25 per share

- 2020-06: CNY 13.32 per share

- 2020-07: CNY 17.48 per share

- 2020-08: CNY 17.84 per share

- 2020-09: CNY 17.04 per share

- 2020-10: CNY 16.07 per share

- 2020-11: CNY 17.99 per share

- 2020-12: CNY 19.65 per share

- 2021-01: CNY 18.32 per share

- 2021-02: CNY 17.07 per share

- 2021-03: CNY 15.09 per share

- 2021-04: CNY 15.03 per share

- 2021-05: CNY 15.99 per share

- 2021-06: CNY 16.55 per share

- 2021-07: CNY 16.52 per share

- 2021-08: CNY 19.48 per share

- 2021-09: CNY 16.48 per share

- 2021-10: CNY 17.76 per share

- 2021-11: CNY 20.38 per share

- 2021-12: CNY 22.39 per share

- 2022-01: CNY 17.13 per share

- 2022-02: CNY 18.18 per share

- 2022-03: CNY 18.77 per share

- 2022-04: CNY 16.98 per share

- 2022-05: CNY 20.60 per share

- 2022-06: CNY 19.39 per share

- 2022-07: CNY 19.23 per share

- 2022-08: CNY 18.57 per share

- 2022-09: CNY 18.46 per share

- 2022-10: CNY 18.47 per share

- 2022-11: CNY 17.82 per share

- 2022-12: CNY 15.97 per share

- 2023-01: CNY 17.98 per share

- 2023-02: CNY 17.21 per share

- 2023-03: CNY 17.52 per share

- 2023-04: CNY 15.29 per share

- 2023-05: CNY 14.83 per share

- 2023-06: CNY 15.18 per share

- 2023-07: CNY 15.33 per share

- 2023-08: CNY 15.02 per share

- 2023-09: CNY 14.16 per share

- 2023-10: CNY 13.65 per share

- 2023-11: CNY 12.90 per share

- 2023-12: CNY 13.18 per share

- 2024-01: CNY 11.08 per share

- 2024-02: CNY 11.85 per share

- 2024-03: CNY 11.69 per share

- 2024-04: CNY 12.15 per share

- 2024-05: CNY 12.10 per share

- 2024-06: CNY 11.97 per share

- 2024-07: CNY 12.84 per share

- 2024-08: CNY 11.26 per share

- 2024-09: CNY 12.96 per share

- 2024-10: CNY 12.77 per share

- 2024-11: CNY 12.55 per share

- 2024-12: CNY 12.33 per share

- 2025-01: CNY 11.36 per share

- 2025-02: CNY 11.40 per share

- 2025-03: CNY 11.10 per share

- 2025-04: CNY 10.82 per share

- 2025-05: CNY 11.59 per share

- 2025-06: CNY 12.06 per share

- 2025-07: CNY 12.55 per share

- 2025-08: CNY 12.86 per share

- 2025-09: CNY 12.61 per share

- 2025-10: CNY 12.11 per share

- 2025-11: CNY 12.12 per share

- 2025-12: CNY 13.42 per share

- 2026-01: CNY 15.52 per share

- 2026-02: CNY 16.14 per share

- 2026-03: CNY 13.00 per share

- 2026-04: CNY 13.00 per share

- 2026-05: CNY 11.14 per share

- 2026-06: CNY 10.85 per share

- 2026-07: CNY 11.34 per share

- 2026-08: CNY 11.21 per share

- 2026-09: CNY 11.25 per share

- 2026-10: CNY 11.31 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 4.95 per share, central CNY 5.44 per share, high CNY 6.10 per share

- FY2017: low CNY 5.98 per share, central CNY 7.36 per share, high CNY 8.16 per share

- FY2018: low CNY 3.82 per share, central CNY 4.81 per share, high CNY 5.40 per share

- FY2019: low CNY 4.27 per share, central CNY 5.33 per share, high CNY 5.94 per share

- FY2020: low CNY 3.25 per share, central CNY 3.55 per share, high CNY 3.86 per share

- FY2021: low CNY 4.43 per share, central CNY 5.27 per share, high CNY 5.84 per share

- FY2022: low CNY 13.77 per share, central CNY 19.32 per share, high CNY 22.55 per share

- FY2023: low CNY 7.65 per share, central CNY 9.18 per share, high CNY 10.28 per share

- FY2024: low CNY 6.11 per share, central CNY 6.60 per share, high CNY 7.24 per share

- FY2025: low CNY 6.12 per share, central CNY 6.61 per share, high CNY 7.26 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 2026-10-15T06:42:06.562Z 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.