# Hundsun Technologies (600570.SHG)

Canonical: https://gigainvestors.com/s/600570.SHG

Analysis as of: 2026-10-16T07:37:12.116Z. 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 19.88 per share; close as of 2026-10-15.

Estimated value: low CNY 6.72 per share, central CNY 7.44 per share, high CNY 8.42 per share. Buy at or below the central value CNY 7.44 per share. Valuation as of 2026-10-16T07:37:12.116Z; scenarios are not confidence intervals.

Expected annual return: 5.2% at the stated quote. About 5.2% 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: 0.45×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.08×

- FY2017: 0.17×

- FY2018: 0.21×

- FY2019: 0.39×

- FY2020: 0.35×

- FY2021: 0.27×

- FY2022: 0.17×

- FY2023: 0.20×

- FY2024: 0.16×

- FY2025: 0.11×

### moat: fail

- Recent gross margin fell 7.2pp below the typical margin (limit 4pp)

- ROIC, median of available years: 33.0%

- ROIC, second-lowest year: 12.3%

- Typical minus recent gross margin: 7.2 pp

- Typical gross margin (annual median): 75.8%

- Recent gross margin (lower of latest and 3-year median): 68.6%

- Years with nonpositive capital: 0

- Capital spending / revenue: 7.2%

- ROIC including acquisitions, ten-year median: 22.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 6.2%

- FY2017: 19.7%

- FY2018: 31.7%

- FY2019: >100%

- FY2020: >100%

- FY2021: 68.0%

- FY2022: 56.4%

- FY2023: 34.3%

- FY2024: 23.0%

- FY2025: 12.3%

### 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: 0.81×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 5.1B

- Net income, five-year total: CNY 6.3B

- Return on incremental invested capital: 6.8%

- Working capital / revenue, annual change: 1.5 pp

- Working capital / revenue, change between three-year averages: 10.7 pp

- Working capital / revenue, final three-year average: 18.2%

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

- FY2021: 0.80×

- FY2022: 0.99×

- FY2023: 0.62×

- FY2024: 0.72×

- FY2025: 0.95×

### 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: 19.7% vs 23.0%

- Per-share earnings: 0.24 to 0.65 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.0%

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

- Market cap gain: CNY 28B

- Cumulative retained earnings: CNY 5.7B

- Diluted shares, 10-year annual growth: -0.0%

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

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 13.3%

- Per-share value change: CNY 0.41

- Per-share value, starting three-year median: CNY 0.24

- Per-share value, ending three-year median: CNY 0.65

- Buybacks concentrated in cheaper years (correlation): 0.20

- Average buyback yield: 0.3%

- Buyback history: 6 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 1.6B

- Cumulative net income, 10 years: CNY 10B

- ROIC, first three-year median: 19.7%

- ROIC, last three-year median: 23.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.01

- FY2017: CNY 0.25

- FY2018: CNY 0.34

- FY2019: CNY 0.75

- FY2020: CNY 0.70

- FY2021: CNY 0.77

- FY2022: CNY 0.58

- FY2023: CNY 0.75

- FY2024: CNY 0.55

- FY2025: CNY 0.65

### accounting: pass

- Sloan accruals: 0.5%

- Receivables to sales index (DSRI): 1.02×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.94×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.14×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -9.3%

- FY2017: -5.7%

- FY2018: -4.7%

- FY2019: 4.1%

- FY2020: -0.8%

- FY2021: 4.2%

- FY2022: -0.4%

- FY2023: 0.1%

- FY2024: 1.2%

- FY2025: 0.5%

## Holders

## Price story

Down 63% since Mar 2023 · sales -12.1%

Story as of 2026-10-16T10:00:08.821Z; price observation 2026-10-15.

Price needs cash profits to grow 15.1% a year for ten years

### Sales · FY2024–2025

sales -12.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 2.1B 

- FY2017: CNY 2.7B 

- FY2018: CNY 3.3B 

- FY2019: CNY 3.9B 

- FY2020: CNY 4.2B 

- FY2021: CNY 5.5B 

- FY2022: CNY 6.5B 

- FY2023: CNY 7.3B 

- FY2024: CNY 6.6B 

- FY2025: CNY 5.8B 

### Gross margin · FY2025

gross margin 68.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 95.4% 

- FY2017: 96.6% 

- FY2018: 97.1% 

- FY2019: 96.8% 

- FY2020: 77.1% 

- FY2021: 72.9% 

- FY2022: 73.3% 

- FY2023: 74.5% 

- FY2024: 71.6% 

- FY2025: 68.6% 

## Owner memo

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

### How it makes money

Operates in software application; annual sales are CNY 5.8 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:12.116Z); FY2025: revenue 5782928939; grossProfit 3964383050; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600570.SHG: Hundsun Technologies Inc. operates as a financial technology company in the People's Republic of China. It offers solutions for wealth management, brokerage business, asset management, institutional business, compliance and risk control, and operational management. The company serves securities, futures, funds, trusts, insurance, banks, exchanges, private placement, industry, financial holdings, and other sectors. Hundsun Technologies Inc. was founded in 1995 and is headquartered in Hangzhou, the People's Republic of China.

### Why customers stay

Margins ranged from 68.6% to 74.5% during 2023–25; it earns 33% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:12.116Z); FY2023: grossProfit / revenue = 74.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:12.116Z); FY2024: grossProfit / revenue = 71.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:12.116Z); FY2025: grossProfit / revenue = 68.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:12.116Z); 10-year return on capital observations [[2016,0.062405055726949314],[2017,0.1968719946261335],[2018,0.31702370258258],[2019,4.3087404795754605],[2020,3.445992869821588],[2021,0.6799933550160692],[2022,0.5637698414018641],[2023,0.3433671781682208],[2024,0.23030028638613642],[2025,0.12341106834364202]]; median 0.3301954403754004. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 73% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:12.116Z); Gross margin observations: [[2021,0.7292240937841991],[2022,0.7331949145577343],[2023,0.7448719647896523]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back CNY 20.1 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:12.116Z); FY2017: growth capex 39667074.16; upkeep 58144646; owner earnings 471218995. Growth capex / owner earnings = 0.08417970111752392.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:12.116Z); FY2018: growth capex 83398873.75999999; upkeep 63240650; owner earnings 645370445. Growth capex / owner earnings = 0.12922636046650693.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:12.116Z); FY2019: growth capex 96074723.25182623; upkeep 271048110.19817376; owner earnings 1212351042.8018262. Growth capex / owner earnings = 0.07924662070631866.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:12.116Z); FY2020: growth capex 56299251.98290992; upkeep 425888996.3770901; owner earnings 966115192.6229099. Growth capex / owner earnings = 0.05827385017107831.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:12.116Z); FY2021: growth capex 289477865.45231813; upkeep 394648825.6476819; owner earnings 1163669983.542318. Growth capex / owner earnings = 0.24876285334018927.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:12.116Z); FY2022: growth capex 131081435.67000002; upkeep 162615334; owner earnings 1084406051.512. Growth capex / owner earnings = 0.12087855419769342.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:12.116Z); FY2023: growth capex 210327359.38141525; upkeep 694378153.9385848; owner earnings 886908946.9814152. Growth capex / owner earnings = 0.23714650765139095.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:12.116Z); FY2024: growth capex 0; upkeep 415727393; owner earnings 749765413.796. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:12.116Z); FY2025: growth capex 0; upkeep 239292000; owner earnings 1172656996.244. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:12.116Z); Dividend observations: [[2016,160629346.8],[2017,61780518],[2018,183511237.64],[2019,197697657],[2020,425667769],[2021,104367431],[2022,146148654],[2023,262868812],[2024,263054111],[2025,188897525]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:12.116Z); FY2025: cash repurchases 20078770 CNY.

### Are managers owners

Insiders own 28.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600570.SHG SharesStats.PercentInsiders = 28.344 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 15.1% yearly over ten years; actual growth was 10%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:12.116Z); Ten-year compound average after fade. Initial solved rate 0.20507369881697624. Price 19.88; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.23877632410557587 → FY2025 0.6189031665993046. Closing-price date 2026-10-15.

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

- 2016-11: CNY 18.56 per share

- 2016-12: CNY 15.33 per share

- 2017-01: CNY 14.39 per share

- 2017-02: CNY 15.14 per share

- 2017-03: CNY 13.74 per share

- 2017-04: CNY 12.68 per share

- 2017-05: CNY 12.15 per share

- 2017-06: CNY 15.18 per share

- 2017-07: CNY 13.74 per share

- 2017-08: CNY 16.69 per share

- 2017-09: CNY 16.59 per share

- 2017-10: CNY 16.61 per share

- 2017-11: CNY 15.27 per share

- 2017-12: CNY 15.09 per share

- 2018-01: CNY 16.74 per share

- 2018-02: CNY 15.52 per share

- 2018-03: CNY 19.44 per share

- 2018-04: CNY 19.79 per share

- 2018-05: CNY 18.76 per share

- 2018-06: CNY 17.22 per share

- 2018-07: CNY 16.63 per share

- 2018-08: CNY 17.34 per share

- 2018-09: CNY 17.95 per share

- 2018-10: CNY 15.19 per share

- 2018-11: CNY 17.62 per share

- 2018-12: CNY 16.90 per share

- 2019-01: CNY 20.28 per share

- 2019-02: CNY 28.10 per share

- 2019-03: CNY 28.47 per share

- 2019-04: CNY 27.00 per share

- 2019-05: CNY 26.35 per share

- 2019-06: CNY 28.80 per share

- 2019-07: CNY 30.05 per share

- 2019-08: CNY 31.40 per share

- 2019-09: CNY 31.25 per share

- 2019-10: CNY 32.23 per share

- 2019-11: CNY 30.77 per share

- 2019-12: CNY 32.85 per share

- 2020-01: CNY 37.49 per share

- 2020-02: CNY 40.66 per share

- 2020-03: CNY 37.15 per share

- 2020-04: CNY 43.37 per share

- 2020-05: CNY 44.51 per share

- 2020-06: CNY 59.18 per share

- 2020-07: CNY 60.18 per share

- 2020-08: CNY 61.23 per share

- 2020-09: CNY 54.17 per share

- 2020-10: CNY 51.07 per share

- 2020-11: CNY 48.59 per share

- 2020-12: CNY 57.64 per share

- 2021-01: CNY 53.37 per share

- 2021-02: CNY 48.02 per share

- 2021-03: CNY 46.15 per share

- 2021-04: CNY 50.49 per share

- 2021-05: CNY 51.58 per share

- 2021-06: CNY 51.24 per share

- 2021-07: CNY 42.85 per share

- 2021-08: CNY 38.12 per share

- 2021-09: CNY 44.06 per share

- 2021-10: CNY 48.46 per share

- 2021-11: CNY 44.93 per share

- 2021-12: CNY 47.81 per share

- 2022-01: CNY 45.05 per share

- 2022-02: CNY 40.18 per share

- 2022-03: CNY 34.20 per share

- 2022-04: CNY 29.29 per share

- 2022-05: CNY 30.85 per share

- 2022-06: CNY 33.49 per share

- 2022-07: CNY 32.66 per share

- 2022-08: CNY 33.64 per share

- 2022-09: CNY 33.89 per share

- 2022-10: CNY 41.68 per share

- 2022-11: CNY 39.96 per share

- 2022-12: CNY 40.46 per share

- 2023-01: CNY 47.22 per share

- 2023-02: CNY 44.40 per share

- 2023-03: CNY 53.22 per share

- 2023-04: CNY 49.40 per share

- 2023-05: CNY 42.48 per share

- 2023-06: CNY 44.29 per share

- 2023-07: CNY 41.12 per share

- 2023-08: CNY 36.00 per share

- 2023-09: CNY 32.45 per share

- 2023-10: CNY 31.12 per share

- 2023-11: CNY 30.03 per share

- 2023-12: CNY 28.76 per share

- 2024-01: CNY 21.04 per share

- 2024-02: CNY 24.42 per share

- 2024-03: CNY 22.56 per share

- 2024-04: CNY 20.61 per share

- 2024-05: CNY 20.07 per share

- 2024-06: CNY 17.66 per share

- 2024-07: CNY 18.32 per share

- 2024-08: CNY 16.33 per share

- 2024-09: CNY 22.87 per share

- 2024-10: CNY 26.81 per share

- 2024-11: CNY 30.68 per share

- 2024-12: CNY 27.99 per share

- 2025-01: CNY 25.94 per share

- 2025-02: CNY 30.55 per share

- 2025-03: CNY 28.04 per share

- 2025-04: CNY 25.95 per share

- 2025-05: CNY 26.31 per share

- 2025-06: CNY 33.54 per share

- 2025-07: CNY 36.20 per share

- 2025-08: CNY 37.49 per share

- 2025-09: CNY 34.52 per share

- 2025-10: CNY 31.46 per share

- 2025-11: CNY 29.32 per share

- 2025-12: CNY 30.15 per share

- 2026-01: CNY 31.05 per share

- 2026-02: CNY 30.02 per share

- 2026-03: CNY 25.53 per share

- 2026-04: CNY 26.79 per share

- 2026-05: CNY 24.27 per share

- 2026-06: CNY 21.19 per share

- 2026-07: CNY 22.92 per share

- 2026-08: CNY 22.00 per share

- 2026-09: CNY 19.40 per share

- 2026-10: CNY 19.83 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 3.07 per share, central CNY 4.01 per share, high CNY 4.67 per share

- FY2017: low CNY 4.14 per share, central CNY 5.81 per share, high CNY 6.78 per share

- FY2018: low CNY 4.97 per share, central CNY 6.95 per share, high CNY 8.10 per share

- FY2019: low CNY 7.56 per share, central CNY 9.90 per share, high CNY 11.27 per share

- FY2020: low CNY 8.03 per share, central CNY 10.56 per share, high CNY 12.03 per share

- FY2021: low CNY 10.27 per share, central CNY 13.85 per share, high CNY 15.93 per share

- FY2022: low CNY 12.10 per share, central CNY 16.33 per share, high CNY 18.79 per share

- FY2023: low CNY 12.84 per share, central CNY 17.57 per share, high CNY 20.32 per share

- FY2024: low CNY 9.89 per share, central CNY 13.26 per share, high CNY 15.23 per share

- FY2025: low CNY 8.03 per share, central CNY 8.80 per share, high CNY 9.82 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.