# AECC Aviation Power (600893.SHG)

Canonical: https://gigainvestors.com/s/600893.SHG

Analysis as of: 2026-10-16T07:35:08.056Z. 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 38.18 per share; close as of 2026-10-15.

Estimated value: low CNY 9.28 per share, central CNY 11.40 per share, high CNY 13.07 per share. Buy at or below the central value CNY 11.40 per share. Valuation as of 2026-10-16T07:35:08.056Z; scenarios are not confidence intervals.

Expected annual return: 4.9% at the stated quote. About 4.9% 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: 0.22×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.04×

- FY2017: 0.05×

- FY2018: 0.05×

- FY2019: 0.05×

- FY2020: 0.05×

- FY2021: 0.04×

- FY2022: 0.04×

- FY2023: 0.04×

- FY2024: 0.02×

- FY2025: 0.03×

### moat: fail

- ROIC median below threshold

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

- ROIC, median of available years: 3.7%

- ROIC, second-lowest year: 2.1%

- Typical minus recent gross margin: 2.7 pp

- Typical gross margin (annual median): 11.8%

- Recent gross margin (lower of latest and 3-year median): 9.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 8.5%

- ROIC including acquisitions, ten-year median: 3.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 2.8%

- FY2017: 3.4%

- FY2018: 3.6%

- FY2019: 4.7%

- FY2020: 3.7%

- FY2021: 6.4%

- FY2022: 4.1%

- FY2023: 3.7%

- FY2024: 1.8%

- FY2025: 2.1%

### economics: fail

- owner earnings cash conversion below threshold

- 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: 0.78×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 4.2B

- Net income, five-year total: CNY 5.4B

- Return on incremental invested capital: 1.2%

- Working capital / revenue, annual change: 2.3 pp

- Working capital / revenue, change between three-year averages: 15.0 pp

- Working capital / revenue, final three-year average: 62.7%

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

- FY2021: 1.00×

- FY2022: 1.00×

- FY2023: 0.99×

- FY2024: 0.98×

- FY2025: -0.84×

### 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: 3.4% vs 2.1%

- Per-share earnings: 0.52 to 0.32 (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: 2.8%

- Ordinary dilution, 5-year annual growth: 3.3%

- Market cap gain: CNY 42B

- Cumulative retained earnings: CNY 6.0B

- Diluted shares, 10-year annual growth: 2.8%

- Diluted shares, 5-year annual growth: 3.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -5.8%

- Per-share value change: CNY -0.20

- Per-share value, starting three-year median: CNY 0.52

- Per-share value, ending three-year median: CNY 0.32

- Buybacks concentrated in cheaper years (correlation): 0.50

- Average buyback yield: 1.3%

- Buyback history: 3 years

- Debt-funded buybacks: Yes

- Acquisition spending: CNY 836M

- Cumulative net income, 10 years: CNY 11B

- ROIC, first three-year median: 3.4%

- ROIC, last three-year median: 2.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.46

- FY2017: CNY 0.75

- FY2018: CNY 0.48

- FY2019: CNY 0.48

- FY2020: CNY 0.51

- FY2021: CNY 0.36

- FY2022: CNY 0.48

- FY2023: CNY 0.53

- FY2024: CNY 0.32

- FY2025: CNY 0.24

### accounting: fail

- earnings not backed by cash

- Sloan accruals: 4.1%

- Receivables to sales index (DSRI): 1.13×

- Restructuring years, last five: 0

- Earnings backed by cash: No

- Operating cash / earnings: -6.96×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.07×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 5.7%

- FY2017: -0.0%

- FY2018: -0.3%

- FY2019: -6.4%

- FY2020: -3.8%

- FY2021: -17.1%

- FY2022: 13.9%

- FY2023: 8.2%

- FY2024: 13.1%

- FY2025: 4.1%

## Holders

## Price story

Down 41% since Nov 2021 · sales -3.2%

Story as of 2026-10-16T10:00:03.785Z; price observation 2026-10-15.

Price needs cash profits to grow 20.3% a year for ten years

### Sales · FY2024–2025

sales -3.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 22B 

- FY2017: CNY 23B 

- FY2018: CNY 23B 

- FY2019: CNY 25B 

- FY2020: CNY 29B 

- FY2021: CNY 34B 

- FY2022: CNY 37B 

- FY2023: CNY 44B 

- FY2024: CNY 48B 

- FY2025: CNY 46B 

### Gross margin · FY2025

gross margin 9.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 18.0% 

- FY2017: 17.4% 

- FY2018: 16.3% 

- FY2019: 15.1% 

- FY2020: 13.0% 

- FY2021: 10.7% 

- FY2022: 10.0% 

- FY2023: 9.7% 

- FY2024: 9.5% 

- FY2025: 9.1% 

## Owner memo

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

### How it makes money

Operates in aerospace & defense; annual sales are CNY 46.3 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:08.056Z); FY2025: revenue 46331495671.4; grossProfit 4223811938.8; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600893.SHG: AECC Aviation Power Co.,Ltd, together with its subsidiaries, engages in the manufacture, sale, and maintenance of aircraft engines and its parts in China and internationally. The company offers large and medium-sized aero-engines, gas turbines, components, and spare parts; general-purpose equipment and motors; and non-aviation and other products. It also provides maintenance and support; equipment installation; aviation equipment repair; and foreign trade export subcontracting services. The company serves the military and civilian markets. It exports its products. The company was formerly known as AVIC Aviation Engine Corporation PLC and changed its name to AECC Aviation Power Co.,Ltd in March 2017. AECC Aviation Power Co.,Ltd was founded in 1958 and is based in Xi'an, China.

### Why customers stay

Margins ranged from 9.1% to 9.7% during 2023–25; it earns 3.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:08.056Z); FY2023: grossProfit / revenue = 9.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:08.056Z); FY2024: grossProfit / revenue = 9.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:08.056Z); FY2025: grossProfit / revenue = 9.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:08.056Z); 10-year return on capital observations [[2016,0.02785361262391316],[2017,0.03444776998253001],[2018,0.03619002463052931],[2019,0.04728692633981963],[2020,0.03720830772778481],[2021,0.06380452159907163],[2022,0.04060896790817317],[2023,0.03724191352825203],[2024,0.017757849567047478],[2025,0.02107025347727322]]; median 0.036699166179157056. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 10% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:08.056Z); Gross margin observations: [[2021,0.106760540762233],[2022,0.09956106262354059],[2023,0.09726373410438399]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back CNY 1.7 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:08.056Z); FY2017: growth capex 191231172.26584816; upkeep 1795231054.7341518; owner earnings 456500516.26584816. Growth capex / owner earnings = 0.41890680393991614.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:08.056Z); FY2018: growth capex 374741413; upkeep 1368615587; owner earnings 1063909441. Growth capex / owner earnings = 0.35223055511921153.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:08.056Z); FY2019: growth capex 966200146; upkeep 1485282854; owner earnings 1077406925. Growth capex / owner earnings = 0.896782936493563.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:08.056Z); FY2020: growth capex 1037418895; upkeep 1551486148; owner earnings 1145986121. Growth capex / owner earnings = 0.9052630533559489.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:08.056Z); FY2021: growth capex 1422845203; upkeep 1589445413; owner earnings 1186518204.976. Growth capex / owner earnings = 1.1991768832816014.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:08.056Z); FY2022: growth capex 1028742854; upkeep 1810110987; owner earnings 1264460949.356. Growth capex / owner earnings = 0.8135821470199984.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:08.056Z); FY2023: growth capex 1366845555.19; upkeep 1976518552; owner earnings 1410322186.2997792. Growth capex / owner earnings = 0.9691725539510603.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:08.056Z); FY2024: growth capex 878216733.9200001; upkeep 2040746876; owner earnings 843458075.1239156. Growth capex / owner earnings = 1.0412097054035294.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:08.056Z); Dividend observations: [[2016,1109849000],[2017,1126325802],[2018,665318000],[2019,731704000],[2020,598472120],[2021,577301833],[2022,437444717],[2023,879440000],[2024,868362000],[2025,844919710.4]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:08.056Z); FY2025: cash repurchases 1726811789.0958335 CNY.

### Are managers owners

Insiders own 49.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 600893.SHG SharesStats.PercentInsiders = 49.827 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 20.3% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:08.056Z); Ten-year compound average after fade. Initial solved rate 0.2822105544082929. Price 38.18; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -0.010989318076989604 → FY2025 -0.20224775650718296. Closing-price date 2026-10-15.

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

- 2016-10: CNY 35.00 per share

- 2016-11: CNY 35.04 per share

- 2016-12: CNY 32.74 per share

- 2017-01: CNY 34.71 per share

- 2017-02: CNY 33.51 per share

- 2017-03: CNY 33.67 per share

- 2017-04: CNY 34.35 per share

- 2017-05: CNY 24.56 per share

- 2017-06: CNY 27.30 per share

- 2017-07: CNY 28.98 per share

- 2017-08: CNY 29.37 per share

- 2017-09: CNY 31.27 per share

- 2017-10: CNY 30.41 per share

- 2017-11: CNY 27.41 per share

- 2017-12: CNY 26.91 per share

- 2018-01: CNY 24.91 per share

- 2018-02: CNY 25.91 per share

- 2018-03: CNY 28.25 per share

- 2018-04: CNY 26.82 per share

- 2018-05: CNY 24.06 per share

- 2018-06: CNY 22.32 per share

- 2018-07: CNY 23.83 per share

- 2018-08: CNY 23.59 per share

- 2018-09: CNY 24.06 per share

- 2018-10: CNY 22.79 per share

- 2018-11: CNY 23.48 per share

- 2018-12: CNY 21.72 per share

- 2019-01: CNY 22.00 per share

- 2019-02: CNY 25.24 per share

- 2019-03: CNY 26.40 per share

- 2019-04: CNY 24.60 per share

- 2019-05: CNY 23.36 per share

- 2019-06: CNY 22.71 per share

- 2019-07: CNY 23.50 per share

- 2019-08: CNY 23.56 per share

- 2019-09: CNY 21.87 per share

- 2019-10: CNY 21.14 per share

- 2019-11: CNY 20.28 per share

- 2019-12: CNY 21.68 per share

- 2020-01: CNY 21.59 per share

- 2020-02: CNY 23.10 per share

- 2020-03: CNY 21.20 per share

- 2020-04: CNY 24.75 per share

- 2020-05: CNY 24.05 per share

- 2020-06: CNY 23.48 per share

- 2020-07: CNY 36.87 per share

- 2020-08: CNY 44.64 per share

- 2020-09: CNY 41.25 per share

- 2020-10: CNY 36.54 per share

- 2020-11: CNY 45.32 per share

- 2020-12: CNY 59.35 per share

- 2021-01: CNY 59.59 per share

- 2021-02: CNY 60.18 per share

- 2021-03: CNY 45.59 per share

- 2021-04: CNY 37.89 per share

- 2021-05: CNY 53.99 per share

- 2021-06: CNY 53.19 per share

- 2021-07: CNY 54.85 per share

- 2021-08: CNY 68.08 per share

- 2021-09: CNY 53.19 per share

- 2021-10: CNY 59.16 per share

- 2021-11: CNY 64.34 per share

- 2021-12: CNY 63.46 per share

- 2022-01: CNY 48.18 per share

- 2022-02: CNY 50.52 per share

- 2022-03: CNY 44.90 per share

- 2022-04: CNY 37.78 per share

- 2022-05: CNY 39.53 per share

- 2022-06: CNY 45.51 per share

- 2022-07: CNY 49.77 per share

- 2022-08: CNY 45.97 per share

- 2022-09: CNY 41.95 per share

- 2022-10: CNY 48.64 per share

- 2022-11: CNY 45.59 per share

- 2022-12: CNY 42.28 per share

- 2023-01: CNY 45.35 per share

- 2023-02: CNY 45.90 per share

- 2023-03: CNY 43.15 per share

- 2023-04: CNY 43.76 per share

- 2023-05: CNY 39.75 per share

- 2023-06: CNY 42.26 per share

- 2023-07: CNY 40.44 per share

- 2023-08: CNY 39.24 per share

- 2023-09: CNY 37.15 per share

- 2023-10: CNY 35.35 per share

- 2023-11: CNY 35.96 per share

- 2023-12: CNY 37.38 per share

- 2024-01: CNY 31.45 per share

- 2024-02: CNY 34.41 per share

- 2024-03: CNY 33.96 per share

- 2024-04: CNY 35.36 per share

- 2024-05: CNY 37.31 per share

- 2024-06: CNY 36.55 per share

- 2024-07: CNY 39.76 per share

- 2024-08: CNY 35.50 per share

- 2024-09: CNY 41.29 per share

- 2024-10: CNY 42.76 per share

- 2024-11: CNY 41.88 per share

- 2024-12: CNY 41.45 per share

- 2025-01: CNY 37.34 per share

- 2025-02: CNY 35.12 per share

- 2025-03: CNY 36.21 per share

- 2025-04: CNY 32.80 per share

- 2025-05: CNY 35.46 per share

- 2025-06: CNY 38.54 per share

- 2025-07: CNY 42.36 per share

- 2025-08: CNY 40.37 per share

- 2025-09: CNY 42.18 per share

- 2025-10: CNY 39.08 per share

- 2025-11: CNY 37.18 per share

- 2025-12: CNY 40.03 per share

- 2026-01: CNY 46.33 per share

- 2026-02: CNY 57.14 per share

- 2026-03: CNY 48.06 per share

- 2026-04: CNY 46.25 per share

- 2026-05: CNY 41.52 per share

- 2026-06: CNY 38.34 per share

- 2026-07: CNY 34.72 per share

- 2026-08: CNY 38.66 per share

- 2026-09: CNY 38.86 per share

- 2026-10: CNY 38.95 per share

## Annual estimated value (CNY per share)

- FY2019: low CNY 6.40 per share, central CNY 7.50 per share, high CNY 8.21 per share

- FY2020: low CNY 10.22 per share, central CNY 13.10 per share, high CNY 14.80 per share

- FY2021: low CNY 11.38 per share, central CNY 12.55 per share, high CNY 13.56 per share

- FY2022: low CNY 10.09 per share, central CNY 11.93 per share, high CNY 13.39 per share

- FY2023: low CNY 8.82 per share, central CNY 9.68 per share, high CNY 10.81 per share

- FY2024: low CNY 9.05 per share, central CNY 10.25 per share, high CNY 11.56 per share

- FY2025: low CNY 8.33 per share, central CNY 10.18 per share, high CNY 11.64 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.