# Hangzhou Silan Microelectronics (600460.SHG)

Canonical: https://gigainvestors.com/s/600460.SHG

Analysis as of: 2026-10-16T07:36:52.700Z. 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 25.95 per share; close as of 2026-10-15.

Estimated value: low CNY 5.82 per share, central CNY 7.31 per share, high CNY 8.18 per share. Buy at or below the central value CNY 7.31 per share. Valuation as of 2026-10-16T07:36:52.700Z; scenarios are not confidence intervals.

Expected annual return: 4.5% at the stated quote. About 4.5% 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

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

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 1

- Operating margin variation: 1.79×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.01×

- FY2017: 0.04×

- FY2018: 0.03×

- FY2019: -0.04×

- FY2020: -0.01×

- FY2021: 0.24×

- FY2022: 0.14×

- FY2023: -0.01×

- FY2024: -0.01×

- FY2025: 0.06×

### moat: fail

- ROIC median below threshold

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

- ROIC, median of available years: 1.1%

- ROIC, second-lowest year: -0.7%

- Typical minus recent gross margin: 3.2 pp

- Typical gross margin (annual median): 22.0%

- Recent gross margin (lower of latest and 3-year median): 18.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 17.4%

- ROIC including acquisitions, ten-year median: 0.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 0.4%

- FY2017: 3.1%

- FY2018: 1.7%

- FY2019: -2.1%

- FY2020: -0.5%

- FY2021: 20.2%

- FY2022: 9.9%

- FY2023: -0.4%

- FY2024: -0.7%

- FY2025: 5.5%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 1.00×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 3.1B

- Net income, five-year total: CNY 3.2B

- Return on incremental invested capital: 11.0%

- Working capital / revenue, annual change: -1.6 pp

- Working capital / revenue, change between three-year averages: -8.1 pp

- Working capital / revenue, final three-year average: 42.5%

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

- FY2021: 1.00×

- FY2022: 1.00×

- FY2023: 1.04×

- FY2024: 1.00×

- FY2025: 1.00×

### management: fail

- 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: 1.7% vs -0.4%

- Per-share earnings: 0.08 to 0.13 (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: 5.0%

- Ordinary dilution, 5-year annual growth: 4.0%

- Market cap gain: CNY 40B

- Cumulative retained earnings: CNY 2.7B

- Diluted shares, 10-year annual growth: 5.0%

- Diluted shares, 5-year annual growth: 4.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 6.3%

- Per-share value change: CNY 0.05

- Per-share value, starting three-year median: CNY 0.08

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

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 0.7%

- Buyback history: 3 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 677M

- Cumulative net income, 10 years: CNY 3.7B

- ROIC, first three-year median: 1.7%

- ROIC, last three-year median: -0.4%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.08

- FY2017: CNY 0.13

- FY2018: CNY 0.12

- FY2019: CNY 0.01

- FY2020: CNY 0.05

- FY2021: CNY 1.07

- FY2022: CNY 0.74

- FY2023: CNY -0.02

- FY2024: CNY 0.13

- FY2025: CNY 0.24

### accounting: pass

- Sloan accruals: -4.1%

- Receivables to sales index (DSRI): 0.60×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 3.76×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.06×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -5.6%

- FY2017: -4.7%

- FY2018: -0.9%

- FY2019: -1.3%

- FY2020: -0.8%

- FY2021: 4.0%

- FY2022: 5.0%

- FY2023: -1.5%

- FY2024: -0.9%

- FY2025: -4.1%

## Holders

## Price story

Down 58% since Nov 2021 · sales +16.3%

Story as of 2026-10-16T10:00:08.284Z; price observation 2026-10-15.

Price needs cash profits to grow 26.8% a year for ten years

### Sales · FY2024–2025

sales +16.3%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 2.4B 

- FY2017: CNY 2.7B 

- FY2018: CNY 3.0B 

- FY2019: CNY 3.1B 

- FY2020: CNY 4.3B 

- FY2021: CNY 7.2B 

- FY2022: CNY 8.3B 

- FY2023: CNY 9.3B 

- FY2024: CNY 11B 

- FY2025: CNY 13B 

### Gross margin · FY2025

gross margin 18.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 22.9% 

- FY2017: 25.4% 

- FY2018: 23.5% 

- FY2019: 16.2% 

- FY2020: 19.3% 

- FY2021: 32.3% 

- FY2022: 28.5% 

- FY2023: 21.1% 

- FY2024: 16.3% 

- FY2025: 18.8% 

## Owner memo

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

### How it makes money

Operates in semiconductors; annual sales are CNY 13.1 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:52.700Z); FY2025: revenue 13051573759.84; grossProfit 2458089681.75; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600460.SHG: Hangzhou Silan Microelectronics Co., Ltd., together with its subsidiaries, engages in the research, design, development, production, and sale of electronic components in China. It offers discrete devices, including LVMOS, HVMOS, IGBT, SiC, and diode; IPM products; industrial and automobile IGBT modules; AC-DC and DC-DC converters; fast charging ICs; and LED lighting drivers, such as dimming and non-dimming LED lighting, LED headlight, and automotive low-voltage motor drivers, as well as smart power switches. The company also provides three-phase and singe half bridge drivers, as well as PFC IGBT gate driver; MEMS sensor comprising triaxial acceleration, six-axis inertial, proximity detection and digital ambient light, heart rate, and silicon microphone sensors; MCU IC products; and digital audio/video, which includes CD SERVO, audio decode, audio effects processing, intelligent audio. In addition, it offers ASIC products, such as bipolar PWM controller and DC-DC, LDO, logic and switch and level shift, comparator, reference IC, and linear regulator, as well as volume and sound control, DC drive, darlington, operational amplifier, and audio circuits; and GaN and GaAs LED chips. Further, the company is involved in information transmission; software and information technology services; wholesale and retail trade; leasing and business services; and scientific research and technical services. Its products are used in home appliances, industrial, LED lighting and chip, automotive, consumer, and audio-visual applications. The company was incorporated in 1997 and is headquartered in Hangzhou, China.

### Why customers stay

Margins ranged from 16.3% to 21.1% during 2023–25; it earns 1.1% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:52.700Z); FY2023: grossProfit / revenue = 21.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:52.700Z); FY2024: grossProfit / revenue = 16.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:52.700Z); FY2025: grossProfit / revenue = 18.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:52.700Z); 10-year return on capital observations [[2016,0.004434703292664435],[2017,0.03058629899816592],[2018,0.017379578213389237],[2019,-0.020573297842109907],[2020,-0.005151032888840028],[2021,0.20218895760338187],[2022,0.09900675770910819],[2023,-0.003536965890483815],[2024,-0.006890601382011404],[2025,0.05506530361961916]]; median 0.010907140753026836. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 67.3% of cash earnings on expansion; earns 11% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:52.700Z); FY2020: growth capex 188328682; upkeep 452052257; owner earnings 67597230. Growth capex / owner earnings = 2.786041410276723.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:52.700Z); FY2021: growth capex 435450245; upkeep 512312814; owner earnings 1517291517.964. Growth capex / owner earnings = 0.2869918139292806.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:52.700Z); FY2022: growth capex 858973648; upkeep 707232446; owner earnings 1050759497.442. Growth capex / owner earnings = 0.8174788332545276.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:52.700Z); FY2024: growth capex 573761538; upkeep 1213329278; owner earnings 218859837.104. Growth capex / owner earnings = 2.6215935531714494.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:52.700Z); FY2025: growth capex 267833618.06000018; upkeep 1363841795.57; owner earnings 397845646.38199997. Growth capex / owner earnings = 0.67320987547727.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:52.700Z); Incremental return on capital 0.10974959446772506, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:52.700Z); Dividend observations: [[2016,68900470],[2017,88215289],[2018,128256896],[2019,170573479],[2020,130365759],[2021,155299444],[2022,301516482],[2023,362643743],[2024,188766131],[2025,251915400.84]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:52.700Z); FY2025: cash repurchases 833666131.5766666 CNY.

### Are managers owners

Insiders own 33.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600460.SHG SharesStats.PercentInsiders = 33.768 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 26.8% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:52.700Z); Ten-year compound average after fade. Initial solved rate 0.379502974813961. Price 25.95; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -0.25223818035041423 → FY2025 0.23957534534786074. Closing-price date 2026-10-15.

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

- 2016-10: CNY 6.64 per share

- 2016-11: CNY 6.68 per share

- 2016-12: CNY 6.22 per share

- 2017-01: CNY 6.05 per share

- 2017-02: CNY 6.22 per share

- 2017-03: CNY 6.33 per share

- 2017-04: CNY 6.39 per share

- 2017-05: CNY 6.09 per share

- 2017-06: CNY 6.09 per share

- 2017-07: CNY 6.09 per share

- 2017-08: CNY 6.58 per share

- 2017-09: CNY 10.42 per share

- 2017-10: CNY 9.94 per share

- 2017-11: CNY 12.24 per share

- 2017-12: CNY 15.43 per share

- 2018-01: CNY 12.85 per share

- 2018-02: CNY 16.08 per share

- 2018-03: CNY 16.04 per share

- 2018-04: CNY 15.90 per share

- 2018-05: CNY 13.45 per share

- 2018-06: CNY 12.20 per share

- 2018-07: CNY 12.49 per share

- 2018-08: CNY 11.51 per share

- 2018-09: CNY 9.99 per share

- 2018-10: CNY 8.78 per share

- 2018-11: CNY 9.04 per share

- 2018-12: CNY 8.12 per share

- 2019-01: CNY 9.86 per share

- 2019-02: CNY 11.25 per share

- 2019-03: CNY 16.41 per share

- 2019-04: CNY 15.79 per share

- 2019-05: CNY 17.15 per share

- 2019-06: CNY 16.60 per share

- 2019-07: CNY 15.02 per share

- 2019-08: CNY 15.27 per share

- 2019-09: CNY 15.15 per share

- 2019-10: CNY 14.66 per share

- 2019-11: CNY 14.63 per share

- 2019-12: CNY 15.47 per share

- 2020-01: CNY 16.95 per share

- 2020-02: CNY 17.19 per share

- 2020-03: CNY 14.45 per share

- 2020-04: CNY 14.18 per share

- 2020-05: CNY 14.20 per share

- 2020-06: CNY 14.68 per share

- 2020-07: CNY 20.16 per share

- 2020-08: CNY 16.80 per share

- 2020-09: CNY 16.11 per share

- 2020-10: CNY 15.10 per share

- 2020-11: CNY 16.09 per share

- 2020-12: CNY 25.00 per share

- 2021-01: CNY 22.44 per share

- 2021-02: CNY 27.00 per share

- 2021-03: CNY 24.23 per share

- 2021-04: CNY 36.01 per share

- 2021-05: CNY 39.59 per share

- 2021-06: CNY 56.35 per share

- 2021-07: CNY 69.69 per share

- 2021-08: CNY 54.80 per share

- 2021-09: CNY 57.09 per share

- 2021-10: CNY 61.67 per share

- 2021-11: CNY 62.07 per share

- 2021-12: CNY 54.20 per share

- 2022-01: CNY 50.59 per share

- 2022-02: CNY 56.99 per share

- 2022-03: CNY 48.50 per share

- 2022-04: CNY 42.00 per share

- 2022-05: CNY 45.10 per share

- 2022-06: CNY 52.00 per share

- 2022-07: CNY 41.60 per share

- 2022-08: CNY 39.66 per share

- 2022-09: CNY 32.05 per share

- 2022-10: CNY 31.40 per share

- 2022-11: CNY 36.60 per share

- 2022-12: CNY 32.79 per share

- 2023-01: CNY 35.33 per share

- 2023-02: CNY 33.71 per share

- 2023-03: CNY 37.01 per share

- 2023-04: CNY 32.90 per share

- 2023-05: CNY 31.95 per share

- 2023-06: CNY 30.27 per share

- 2023-07: CNY 30.63 per share

- 2023-08: CNY 25.35 per share

- 2023-09: CNY 24.36 per share

- 2023-10: CNY 24.26 per share

- 2023-11: CNY 24.16 per share

- 2023-12: CNY 22.83 per share

- 2024-01: CNY 18.17 per share

- 2024-02: CNY 20.90 per share

- 2024-03: CNY 19.47 per share

- 2024-04: CNY 19.18 per share

- 2024-05: CNY 18.79 per share

- 2024-06: CNY 17.51 per share

- 2024-07: CNY 21.55 per share

- 2024-08: CNY 18.92 per share

- 2024-09: CNY 22.62 per share

- 2024-10: CNY 31.07 per share

- 2024-11: CNY 27.68 per share

- 2024-12: CNY 26.02 per share

- 2025-01: CNY 25.07 per share

- 2025-02: CNY 25.51 per share

- 2025-03: CNY 24.11 per share

- 2025-04: CNY 25.02 per share

- 2025-05: CNY 24.02 per share

- 2025-06: CNY 24.82 per share

- 2025-07: CNY 25.59 per share

- 2025-08: CNY 32.47 per share

- 2025-09: CNY 31.44 per share

- 2025-10: CNY 31.87 per share

- 2025-11: CNY 27.93 per share

- 2025-12: CNY 28.41 per share

- 2026-01: CNY 33.39 per share

- 2026-02: CNY 32.19 per share

- 2026-03: CNY 25.52 per share

- 2026-04: CNY 28.90 per share

- 2026-05: CNY 34.60 per share

- 2026-06: CNY 54.66 per share

- 2026-07: CNY 28.26 per share

- 2026-08: CNY 34.16 per share

- 2026-09: CNY 30.75 per share

- 2026-10: CNY 27.75 per share

## Annual estimated value (CNY per share)

- FY2022: low CNY 2.70 per share, central CNY 3.24 per share, high CNY 3.55 per share

- FY2023: low CNY 3.88 per share, central CNY 4.00 per share, high CNY 4.17 per share

- FY2024: low CNY 3.66 per share, central CNY 3.85 per share, high CNY 4.11 per share

- FY2025: low CNY 6.13 per share, central CNY 7.53 per share, high CNY 8.34 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 2026-10-15T06:42:32.491Z 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.