# China Merchants Energy Shipping (601872.SHG)

Canonical: https://gigainvestors.com/s/601872.SHG

Analysis as of: 2026-10-16T07:34:36.391Z. Financial observations: FY2003–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 19.33 per share; close as of 2026-10-15.

Estimated value: low CNY 9.41 per share, central CNY 13.06 per share, high CNY 15.19 per share. Buy at or below the central value CNY 13.06 per share. Valuation as of 2026-10-16T07:34:36.391Z; scenarios are not confidence intervals.

Expected annual return: 7.7% at the stated quote. About 7.7% 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

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

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.31×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.24×

- FY2017: 0.10×

- FY2018: 0.10×

- FY2019: 0.11×

- FY2020: 0.15×

- FY2021: 0.18×

- FY2022: 0.20×

- FY2023: 0.20×

- FY2024: 0.23×

- FY2025: 0.22×

### moat: fail

- ROIC median below threshold

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

- ROIC, median of available years: 7.5%

- ROIC, second-lowest year: 3.2%

- Typical minus recent gross margin: -3.4 pp

- Typical gross margin (annual median): 22.7%

- Recent gross margin (lower of latest and 3-year median): 26.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 24.4%

- ROIC including acquisitions, ten-year median: 4.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 5.0%

- FY2017: 3.2%

- FY2018: 2.5%

- FY2019: 4.3%

- FY2020: 6.8%

- FY2021: 8.5%

- FY2022: 10.4%

- FY2023: 9.2%

- FY2024: 9.3%

- FY2025: 8.3%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.67×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 17B

- Net income, five-year total: CNY 25B

- Return on incremental invested capital: 15.6%

- Working capital / revenue, annual change: 0.1 pp

- Working capital / revenue, change between three-year averages: -1.3 pp

- Working capital / revenue, final three-year average: 11.3%

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

- FY2021: 0.97×

- FY2022: 0.99×

- FY2023: 0.52×

- FY2024: -0.04×

- FY2025: 0.96×

### 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: 3.2% vs 9.2%

- Per-share earnings: 0.20 to 0.63 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 3.2%

- Ordinary dilution, 5-year annual growth: 0.2%

- Market cap gain: CNY 46B

- Cumulative retained earnings: CNY 18B

- Diluted shares, 10-year annual growth: 3.2%

- Diluted shares, 5-year annual growth: 0.2%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 15.7%

- Per-share value change: CNY 0.43

- Per-share value, starting three-year median: CNY 0.20

- Per-share value, ending three-year median: CNY 0.63

- Buybacks concentrated in cheaper years (correlation): -1.00

- Average buyback yield: 0.3%

- Buyback history: 2 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 1.4B

- Cumulative net income, 10 years: CNY 33B

- ROIC, first three-year median: 3.2%

- ROIC, last three-year median: 9.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.27

- FY2017: CNY 0.13

- FY2018: CNY 0.16

- FY2019: CNY 0.26

- FY2020: CNY 0.38

- FY2021: CNY 0.44

- FY2022: CNY 0.63

- FY2023: CNY 0.59

- FY2024: CNY 0.63

- FY2025: CNY 0.74

### accounting: pass

- Sloan accruals: -3.9%

- Receivables to sales index (DSRI): 1.09×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.54×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.04×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -4.6%

- FY2017: -7.0%

- FY2018: -5.9%

- FY2019: -5.0%

- FY2020: -9.3%

- FY2021: -4.8%

- FY2022: -2.9%

- FY2023: -6.5%

- FY2024: -4.8%

- FY2025: -3.9%

## Holders

## Price story

Price needs cash profits to grow 11.8% a year for ten years · sales +9.1%

Story as of 2026-10-16T10:00:01.548Z; price observation 2026-10-15.

Price needs cash profits to grow 11.8% a year for ten years

### Sales · FY2024–2025

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

- FY2016: CNY 6.0B 

- FY2017: CNY 9.6B 

- FY2018: CNY 11B 

- FY2019: CNY 19B 

- FY2020: CNY 22B 

- FY2021: CNY 24B 

- FY2022: CNY 30B 

- FY2023: CNY 26B 

- FY2024: CNY 26B 

- FY2025: CNY 28B 

### Gross margin · FY2025

gross margin 26.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 39.1% 

- FY2017: 20.8% 

- FY2018: 17.7% 

- FY2019: 19.4% 

- FY2020: 23.4% 

- FY2021: 18.7% 

- FY2022: 21.9% 

- FY2023: 25.9% 

- FY2024: 28.4% 

- FY2025: 26.1% 

## Owner memo

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

### How it makes money

Operates in oil & gas midstream; annual sales are CNY 28.2 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:36.391Z); FY2025: revenue 28151730791; grossProfit 7336743424; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 601872.SHG: China Merchants Energy Shipping Co., Ltd. operates as a shipping company in China. It engages in the oil tanker, liquefied natural gas, dry bulk, RoRo, and container shipping. The company also offers digital transformation and tailored development services for the shipping and trade sector; and crew supply services for its fleets. In addition, it operates a maritime service platform, which provides ship agency, provisioning, spare parts supply, maintenance, inspection, and safety check services. The company was incorporated in 2004 and is headquartered in Shanghai, China. China Merchants Energy Shipping Co., Ltd. operates as a subsidiary of China Merchants Steam Navigation Company Limited.

### Why customers stay

Margins ranged from 25.9% to 28.4% during 2023–25; it earns 7.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:36.391Z); FY2023: grossProfit / revenue = 25.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:36.391Z); FY2024: grossProfit / revenue = 28.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:36.391Z); FY2025: grossProfit / revenue = 26.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:36.391Z); 10-year return on capital observations [[2016,0.049996874406029214],[2017,0.03176349021314715],[2018,0.025138898760085075],[2019,0.043261939444749785],[2020,0.06815031600238183],[2021,0.08462973791965657],[2022,0.10386210034597392],[2023,0.09188894486125716],[2024,0.0926785451091102],[2025,0.08269549491160466]]; median 0.07542290545699325. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 68.7% of cash earnings on expansion; earns 15.6% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:36.391Z); FY2017: growth capex 2154880424; upkeep 1361237698; owner earnings 844747058. Growth capex / owner earnings = 2.550917938799143.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:36.391Z); FY2018: growth capex 4889167857; upkeep 1466770567; owner earnings 1166993931. Growth capex / owner earnings = 4.189540088533674.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:36.391Z); FY2019: growth capex 1825747509; upkeep 2102543491; owner earnings 1932766601. Growth capex / owner earnings = 0.9446290659489723.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:36.391Z); FY2020: growth capex 0; upkeep 1418550000; owner earnings 3812531336. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:36.391Z); FY2021: growth capex 465462676; upkeep 1964137324; owner earnings 3504882178.33. Growth capex / owner earnings = 0.13280408650478026.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:36.391Z); FY2022: growth capex 634440680; upkeep 2061546582; owner earnings 5011842234.47. Growth capex / owner earnings = 0.12658831829072764.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:36.391Z); FY2023: growth capex 0; upkeep 4488728178; owner earnings 2508290891.304. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:36.391Z); FY2025: growth capex 3977139299; upkeep 3819739753; owner earnings 5786752969.94. Growth capex / owner earnings = 0.687283407406492.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:36.391Z); Incremental return on capital 0.15580368439683265, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:36.391Z); Dividend observations: [[2016,617938130],[2017,1143540598],[2018,902209868],[2019,1304679000],[2020,1240379000],[2021,1315290000],[2022,1684453008],[2023,2817317470],[2024,3938691216],[2025,1824845701]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:36.391Z); FY2025: cash repurchases 310546652 CNY.

### Are managers owners

Insiders own 67.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 601872.SHG SharesStats.PercentInsiders = 67.55600000000001 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 11.8% yearly over ten years; actual growth was 13.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:36.391Z); Ten-year compound average after fade. Initial solved rate 0.15636296118916604. Price 19.33; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.19537259451492264 → FY2025 0.7166667135143389. Closing-price date 2026-10-15.

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

- 2016-11: CNY 4.68 per share

- 2016-12: CNY 4.12 per share

- 2017-01: CNY 4.22 per share

- 2017-02: CNY 4.42 per share

- 2017-03: CNY 4.53 per share

- 2017-04: CNY 4.30 per share

- 2017-05: CNY 4.30 per share

- 2017-06: CNY 4.30 per share

- 2017-07: CNY 4.30 per share

- 2017-08: CNY 4.30 per share

- 2017-09: CNY 4.13 per share

- 2017-10: CNY 4.23 per share

- 2017-11: CNY 3.75 per share

- 2017-12: CNY 3.66 per share

- 2018-01: CNY 3.61 per share

- 2018-02: CNY 3.33 per share

- 2018-03: CNY 3.10 per share

- 2018-04: CNY 3.14 per share

- 2018-05: CNY 3.26 per share

- 2018-06: CNY 3.01 per share

- 2018-07: CNY 2.90 per share

- 2018-08: CNY 2.76 per share

- 2018-09: CNY 3.10 per share

- 2018-10: CNY 3.34 per share

- 2018-11: CNY 3.38 per share

- 2018-12: CNY 3.08 per share

- 2019-01: CNY 3.46 per share

- 2019-02: CNY 3.84 per share

- 2019-03: CNY 4.07 per share

- 2019-04: CNY 4.05 per share

- 2019-05: CNY 3.33 per share

- 2019-06: CNY 3.63 per share

- 2019-07: CNY 3.45 per share

- 2019-08: CNY 3.92 per share

- 2019-09: CNY 3.97 per share

- 2019-10: CNY 4.59 per share

- 2019-11: CNY 4.95 per share

- 2019-12: CNY 6.88 per share

- 2020-01: CNY 5.26 per share

- 2020-02: CNY 4.22 per share

- 2020-03: CNY 5.32 per share

- 2020-04: CNY 5.65 per share

- 2020-05: CNY 4.93 per share

- 2020-06: CNY 4.86 per share

- 2020-07: CNY 5.21 per share

- 2020-08: CNY 5.38 per share

- 2020-09: CNY 4.80 per share

- 2020-10: CNY 4.82 per share

- 2020-11: CNY 5.03 per share

- 2020-12: CNY 4.71 per share

- 2021-01: CNY 4.04 per share

- 2021-02: CNY 4.36 per share

- 2021-03: CNY 4.35 per share

- 2021-04: CNY 4.09 per share

- 2021-05: CNY 4.43 per share

- 2021-06: CNY 4.62 per share

- 2021-07: CNY 3.77 per share

- 2021-08: CNY 4.34 per share

- 2021-09: CNY 5.52 per share

- 2021-10: CNY 4.58 per share

- 2021-11: CNY 4.37 per share

- 2021-12: CNY 4.10 per share

- 2022-01: CNY 3.88 per share

- 2022-02: CNY 4.59 per share

- 2022-03: CNY 4.72 per share

- 2022-04: CNY 5.11 per share

- 2022-05: CNY 6.05 per share

- 2022-06: CNY 5.76 per share

- 2022-07: CNY 6.92 per share

- 2022-08: CNY 7.49 per share

- 2022-09: CNY 7.10 per share

- 2022-10: CNY 6.97 per share

- 2022-11: CNY 6.57 per share

- 2022-12: CNY 5.59 per share

- 2023-01: CNY 6.39 per share

- 2023-02: CNY 7.04 per share

- 2023-03: CNY 7.01 per share

- 2023-04: CNY 6.63 per share

- 2023-05: CNY 5.71 per share

- 2023-06: CNY 5.79 per share

- 2023-07: CNY 6.39 per share

- 2023-08: CNY 5.89 per share

- 2023-09: CNY 6.43 per share

- 2023-10: CNY 6.43 per share

- 2023-11: CNY 6.01 per share

- 2023-12: CNY 5.88 per share

- 2024-01: CNY 6.53 per share

- 2024-02: CNY 7.20 per share

- 2024-03: CNY 7.96 per share

- 2024-04: CNY 8.53 per share

- 2024-05: CNY 8.87 per share

- 2024-06: CNY 8.45 per share

- 2024-07: CNY 7.80 per share

- 2024-08: CNY 7.51 per share

- 2024-09: CNY 8.04 per share

- 2024-10: CNY 6.72 per share

- 2024-11: CNY 6.31 per share

- 2024-12: CNY 6.41 per share

- 2025-01: CNY 6.92 per share

- 2025-02: CNY 6.30 per share

- 2025-03: CNY 6.52 per share

- 2025-04: CNY 5.85 per share

- 2025-05: CNY 6.05 per share

- 2025-06: CNY 6.26 per share

- 2025-07: CNY 6.06 per share

- 2025-08: CNY 6.49 per share

- 2025-09: CNY 8.88 per share

- 2025-10: CNY 9.26 per share

- 2025-11: CNY 8.81 per share

- 2025-12: CNY 8.98 per share

- 2026-01: CNY 11.36 per share

- 2026-02: CNY 16.24 per share

- 2026-03: CNY 16.36 per share

- 2026-04: CNY 17.60 per share

- 2026-05: CNY 15.86 per share

- 2026-06: CNY 17.57 per share

- 2026-07: CNY 16.79 per share

- 2026-08: CNY 18.75 per share

- 2026-09: CNY 20.15 per share

- 2026-10: CNY 21.61 per share

## Annual estimated value (CNY per share)

- FY2018: low CNY 1.97 per share, central CNY 2.17 per share, high CNY 2.44 per share

- FY2019: low CNY 4.28 per share, central CNY 5.79 per share, high CNY 6.67 per share

- FY2020: low CNY 4.93 per share, central CNY 6.56 per share, high CNY 7.51 per share

- FY2021: low CNY 5.59 per share, central CNY 7.45 per share, high CNY 8.54 per share

- FY2022: low CNY 8.44 per share, central CNY 11.50 per share, high CNY 13.28 per share

- FY2023: low CNY 6.75 per share, central CNY 9.41 per share, high CNY 10.95 per share

- FY2024: low CNY 6.70 per share, central CNY 9.36 per share, high CNY 10.90 per share

- FY2025: low CNY 5.99 per share, central CNY 6.74 per share, high CNY 7.74 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.