# HUAYU Automotive Systems (600741.SHG)

Canonical: https://gigainvestors.com/s/600741.SHG

Analysis as of: 2026-10-16T07:36:35.145Z. 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 15.47 per share; close as of 2026-10-15.

Estimated value: low CNY 36.66 per share, central CNY 40.26 per share, high CNY 45.05 per share. Buy at or below the central value CNY 40.26 per share. Valuation as of 2026-10-16T07:36:35.145Z; scenarios are not confidence intervals.

Expected annual return: 48.8% at the stated quote. About 48.8% 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: 0.18×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.08×

- FY2017: 0.07×

- FY2018: 0.07×

- FY2019: 0.06×

- FY2020: 0.06×

- FY2021: 0.06×

- FY2022: 0.06×

- FY2023: 0.05×

- FY2024: 0.05×

- FY2025: 0.04×

### moat: pass

- ROIC, median of available years: 24.3%

- ROIC, second-lowest year: 16.9%

- Typical minus recent gross margin: 1.9 pp

- Typical gross margin (annual median): 14.2%

- Recent gross margin (lower of latest and 3-year median): 12.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.5%

- ROIC including acquisitions, ten-year median: 16.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 58.8%

- FY2017: 51.5%

- FY2018: 39.9%

- FY2019: 30.5%

- FY2020: 25.4%

- FY2021: 23.2%

- FY2022: 22.6%

- FY2023: 22.8%

- FY2024: 16.9%

- FY2025: 13.1%

### economics: fail

- incremental invested capital return below threshold

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

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 33B

- Net income, five-year total: CNY 35B

- Return on incremental invested capital: -25.9%

- Working capital / revenue, annual change: 0.5 pp

- Working capital / revenue, change between three-year averages: 3.7 pp

- Working capital / revenue, final three-year average: 3.1%

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

- FY2021: 0.89×

- FY2022: 0.90×

- FY2023: 0.89×

- FY2024: 0.94×

- FY2025: 1.08×

### 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: 51.5% vs 16.9%

- Per-share earnings: 2.03 to 2.29 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 2.0%

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

- Market cap gain: CNY 13B

- Cumulative retained earnings: CNY 26B

- Diluted shares, 10-year annual growth: 2.0%

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

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 1.5%

- Per-share value change: CNY 0.26

- Per-share value, starting three-year median: CNY 2.03

- Per-share value, ending three-year median: CNY 2.29

- Buyback history: 0 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 3.0B

- Cumulative net income, 10 years: CNY 67B

- ROIC, first three-year median: 51.5%

- ROIC, last three-year median: 16.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 1.93

- FY2017: CNY 2.08

- FY2018: CNY 2.55

- FY2019: CNY 2.05

- FY2020: CNY 1.72

- FY2021: CNY 2.05

- FY2022: CNY 2.28

- FY2023: CNY 2.29

- FY2024: CNY 2.12

- FY2025: CNY 2.29

### accounting: pass

- Sloan accruals: -1.2%

- Receivables to sales index (DSRI): 0.78×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.32×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.06×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -4.9%

- FY2017: -1.6%

- FY2018: -1.0%

- FY2019: -2.3%

- FY2020: -2.6%

- FY2021: -1.5%

- FY2022: -1.7%

- FY2023: -2.3%

- FY2024: -0.8%

- FY2025: -1.2%

## Holders

## Price story

Down 45% since Dec 2021 · sales +9%

Story as of 2026-10-16T10:00:07.717Z; price observation 2026-10-15.

Price needs cash profits to shrink 22.9% a year for ten years

### Sales · FY2024–2025

sales +9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 124B 

- FY2017: CNY 140B 

- FY2018: CNY 157B 

- FY2019: CNY 144B 

- FY2020: CNY 134B 

- FY2021: CNY 140B 

- FY2022: CNY 158B 

- FY2023: CNY 169B 

- FY2024: CNY 169B 

- FY2025: CNY 184B 

### Gross margin · FY2025

gross margin 12.3%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 14.7% 

- FY2017: 14.4% 

- FY2018: 13.7% 

- FY2019: 14.4% 

- FY2020: 14.3% 

- FY2021: 14.2% 

- FY2022: 14.2% 

- FY2023: 12.9% 

- FY2024: 12.0% 

- FY2025: 12.3% 

## Owner memo

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

### How it makes money

Operates in auto parts; annual sales are CNY 184 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:35.145Z); FY2025: revenue 183998900513.66; grossProfit 22638143872.31; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600741.SHG: HUAYU Automotive Systems Company Limited researches and develops, manufactures, and sells automotive parts worldwide. The company offers advanced driving assist systems and autonomous driving systems; intelligent vision perception system solutions; Smart Cabins; e-drive solutions; thermal and battery management systems; chassis systems, such as suspension, steering, braking, and transmission systems; interior and exterior parts, seats, and passive safety systems; and automotive fuel systems. It also provides electronic cooling water pump, electronic vacuum pump, electronic vapour pump, variable oil pump and mechanical water pump, covering systems of thermal management, turbocharger cooling, battery cooling, oil supply cooling, exhaust gas recirculation cooling, canister purging, engine and transmission lubrication, cooling, and hydraulic drives. The company was formerly known as Shanghai Bus Industry (Group) Co., Ltd. and changed its name to HUAYU Automotive Systems Company Limited on April 20, 2009. HUAYU Automotive Systems Company Limited was founded in 1992 and is based in Shanghai, China. HUAYU Automotive Systems Company Limited operates as a subsidiary of SAIC Motor Corporation Limited.

### Why customers stay

Margins ranged from 12% to 12.9% during 2023–25; it earns 24.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:35.145Z); FY2023: grossProfit / revenue = 12.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:35.145Z); FY2024: grossProfit / revenue = 12%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:35.145Z); FY2025: grossProfit / revenue = 12.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:35.145Z); 10-year return on capital observations [[2016,0.5879732759858872],[2017,0.5150064443874811],[2018,0.39921930583914894],[2019,0.3046055596622278],[2020,0.25379462555382726],[2021,0.23167690473809685],[2022,0.22595160838671058],[2023,0.22826955982353084],[2024,0.1685071479749857],[2025,0.13077711367134973]]; median 0.24273576514596207. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 14% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:35.145Z); Gross margin observations: [[2021,0.14245006614782155],[2022,0.14159553522117405],[2023,0.12943763952857387]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:35.145Z); FY2016: growth capex 1962269000; upkeep 2533553000; owner earnings 6075759000. Growth capex / owner earnings = 0.3229668918730977.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:35.145Z); FY2017: growth capex 2091745539.6255178; upkeep 3901862460.374482; owner earnings 5650905539.625518. Growth capex / owner earnings = 0.37016112284264735.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:35.145Z); FY2018: growth capex 2324830632.2598877; upkeep 5200372367.740112; owner earnings 6558764632.259888. Growth capex / owner earnings = 0.3544616650557933.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:35.145Z); FY2019: growth capex 0; upkeep 5706307000; owner earnings 5112424000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:35.145Z); FY2020: growth capex 0; upkeep 4003975000; owner earnings 6232723000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:35.145Z); FY2021: growth capex 268196000; upkeep 4793626000; owner earnings 5781456343.412. Growth capex / owner earnings = 0.046389003750864743.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:35.145Z); FY2022: growth capex 507932000; upkeep 4693061000; owner earnings 6506157373.946. Growth capex / owner earnings = 0.07806943035746736.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:35.145Z); FY2023: growth capex 4654000; upkeep 4893332000; owner earnings 6452014492.374. Growth capex / owner earnings = 0.0007213251001684552.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:35.145Z); FY2024: growth capex 0; upkeep 4457965000; owner earnings 6257029580.1119995. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:35.145Z); FY2025: growth capex 0; upkeep 4752057698.59; owner earnings 7813824103.791999. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:35.145Z); Dividend observations: [[2016,2819775000],[2017,3517273000],[2018,3612792000],[2019,3749382000],[2020,3105929000],[2021,2712600000],[2022,3099870000],[2023,3271862000],[2024,2940611000],[2025,3033743481.91]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 58.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600741.SHG SharesStats.PercentInsiders = 58.870999999999995 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 22.9% yearly over ten years; actual growth was 2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:35.145Z); Ten-year compound average after fade. Initial solved rate -0.32591636626175136. Price 15.47; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 2.026723596772575 → FY2025 2.4784358236851682. Closing-price date 2026-10-15.

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

- 2016-10: CNY 16.50 per share

- 2016-11: CNY 16.87 per share

- 2016-12: CNY 15.95 per share

- 2017-01: CNY 16.60 per share

- 2017-02: CNY 16.84 per share

- 2017-03: CNY 18.21 per share

- 2017-04: CNY 18.78 per share

- 2017-05: CNY 19.99 per share

- 2017-06: CNY 24.24 per share

- 2017-07: CNY 21.35 per share

- 2017-08: CNY 20.99 per share

- 2017-09: CNY 22.55 per share

- 2017-10: CNY 25.43 per share

- 2017-11: CNY 25.55 per share

- 2017-12: CNY 29.69 per share

- 2018-01: CNY 26.48 per share

- 2018-02: CNY 26.27 per share

- 2018-03: CNY 24.23 per share

- 2018-04: CNY 22.19 per share

- 2018-05: CNY 25.52 per share

- 2018-06: CNY 23.72 per share

- 2018-07: CNY 23.32 per share

- 2018-08: CNY 20.43 per share

- 2018-09: CNY 22.50 per share

- 2018-10: CNY 17.43 per share

- 2018-11: CNY 16.95 per share

- 2018-12: CNY 18.40 per share

- 2019-01: CNY 20.21 per share

- 2019-02: CNY 20.75 per share

- 2019-03: CNY 20.38 per share

- 2019-04: CNY 22.60 per share

- 2019-05: CNY 20.08 per share

- 2019-06: CNY 21.60 per share

- 2019-07: CNY 23.10 per share

- 2019-08: CNY 24.93 per share

- 2019-09: CNY 23.50 per share

- 2019-10: CNY 25.11 per share

- 2019-11: CNY 25.92 per share

- 2019-12: CNY 25.99 per share

- 2020-01: CNY 26.70 per share

- 2020-02: CNY 28.15 per share

- 2020-03: CNY 21.54 per share

- 2020-04: CNY 20.40 per share

- 2020-05: CNY 19.15 per share

- 2020-06: CNY 20.79 per share

- 2020-07: CNY 21.00 per share

- 2020-08: CNY 24.88 per share

- 2020-09: CNY 24.90 per share

- 2020-10: CNY 31.12 per share

- 2020-11: CNY 31.26 per share

- 2020-12: CNY 28.82 per share

- 2021-01: CNY 29.89 per share

- 2021-02: CNY 25.80 per share

- 2021-03: CNY 27.57 per share

- 2021-04: CNY 26.12 per share

- 2021-05: CNY 24.53 per share

- 2021-06: CNY 26.27 per share

- 2021-07: CNY 19.31 per share

- 2021-08: CNY 23.20 per share

- 2021-09: CNY 22.82 per share

- 2021-10: CNY 26.74 per share

- 2021-11: CNY 25.80 per share

- 2021-12: CNY 28.30 per share

- 2022-01: CNY 27.49 per share

- 2022-02: CNY 25.36 per share

- 2022-03: CNY 19.95 per share

- 2022-04: CNY 19.60 per share

- 2022-05: CNY 22.05 per share

- 2022-06: CNY 23.00 per share

- 2022-07: CNY 21.93 per share

- 2022-08: CNY 18.67 per share

- 2022-09: CNY 16.52 per share

- 2022-10: CNY 16.77 per share

- 2022-11: CNY 18.46 per share

- 2022-12: CNY 17.33 per share

- 2023-01: CNY 18.22 per share

- 2023-02: CNY 18.90 per share

- 2023-03: CNY 16.74 per share

- 2023-04: CNY 16.38 per share

- 2023-05: CNY 17.46 per share

- 2023-06: CNY 18.46 per share

- 2023-07: CNY 19.73 per share

- 2023-08: CNY 18.79 per share

- 2023-09: CNY 18.77 per share

- 2023-10: CNY 17.54 per share

- 2023-11: CNY 17.40 per share

- 2023-12: CNY 16.28 per share

- 2024-01: CNY 16.24 per share

- 2024-02: CNY 17.47 per share

- 2024-03: CNY 16.71 per share

- 2024-04: CNY 16.48 per share

- 2024-05: CNY 16.07 per share

- 2024-06: CNY 16.38 per share

- 2024-07: CNY 15.59 per share

- 2024-08: CNY 14.75 per share

- 2024-09: CNY 17.93 per share

- 2024-10: CNY 15.10 per share

- 2024-11: CNY 16.92 per share

- 2024-12: CNY 17.61 per share

- 2025-01: CNY 16.80 per share

- 2025-02: CNY 18.20 per share

- 2025-03: CNY 18.06 per share

- 2025-04: CNY 17.80 per share

- 2025-05: CNY 18.10 per share

- 2025-06: CNY 17.65 per share

- 2025-07: CNY 17.58 per share

- 2025-08: CNY 19.15 per share

- 2025-09: CNY 20.50 per share

- 2025-10: CNY 20.42 per share

- 2025-11: CNY 19.42 per share

- 2025-12: CNY 20.00 per share

- 2026-01: CNY 19.23 per share

- 2026-02: CNY 19.33 per share

- 2026-03: CNY 19.21 per share

- 2026-04: CNY 18.66 per share

- 2026-05: CNY 16.71 per share

- 2026-06: CNY 15.52 per share

- 2026-07: CNY 16.86 per share

- 2026-08: CNY 15.45 per share

- 2026-09: CNY 15.38 per share

- 2026-10: CNY 15.56 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 34.89 per share, central CNY 46.11 per share, high CNY 52.65 per share

- FY2017: low CNY 33.86 per share, central CNY 44.32 per share, high CNY 50.41 per share

- FY2018: low CNY 36.98 per share, central CNY 49.12 per share, high CNY 56.18 per share

- FY2019: low CNY 35.44 per share, central CNY 46.56 per share, high CNY 53.03 per share

- FY2020: low CNY 30.00 per share, central CNY 32.67 per share, high CNY 36.22 per share

- FY2021: low CNY 30.27 per share, central CNY 33.19 per share, high CNY 37.09 per share

- FY2022: low CNY 34.56 per share, central CNY 39.75 per share, high CNY 44.77 per share

- FY2023: low CNY 37.14 per share, central CNY 42.47 per share, high CNY 47.55 per share

- FY2024: low CNY 35.21 per share, central CNY 40.17 per share, high CNY 45.13 per share

- FY2025: low CNY 36.84 per share, central CNY 40.45 per share, high CNY 45.27 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.