# Zhejiang Chint Electrics (601877.SHG)

Canonical: https://gigainvestors.com/s/601877.SHG

Analysis as of: 2026-10-16T07:36:23.084Z. Financial observations: FY2006–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 24.58 per share; close as of 2026-10-15.

Estimated value: low CNY 21.69 per share, central CNY 24.55 per share, high CNY 27.75 per share. Buy at or below the central value CNY 24.55 per share. Valuation as of 2026-10-16T07:36:23.084Z; scenarios are not confidence intervals.

Expected annual return: 10.0% at the stated quote. About 10.0% 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

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.24×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.14×

- FY2017: 0.14×

- FY2018: 0.15×

- FY2019: 0.15×

- FY2020: 0.24×

- FY2021: 0.12×

- FY2022: 0.13×

- FY2023: 0.11×

- FY2024: 0.11×

- FY2025: 0.15×

### moat: fail

- ROIC median below threshold

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

- ROIC, median of available years: 11.0%

- ROIC, second-lowest year: 8.3%

- Typical minus recent gross margin: 3.7 pp

- Typical gross margin (annual median): 26.8%

- Recent gross margin (lower of latest and 3-year median): 23.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 15.0%

- ROIC including acquisitions, ten-year median: 5.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 11.5%

- FY2017: 12.2%

- FY2018: 14.2%

- FY2019: 12.8%

- FY2020: 16.4%

- FY2021: 8.3%

- FY2022: 9.8%

- FY2023: 10.6%

- FY2024: 6.2%

- FY2025: 10.6%

### 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: 0.40×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 7.8B

- Net income, five-year total: CNY 19B

- Return on incremental invested capital: 6.4%

- Working capital / revenue, annual change: 7.5 pp

- Working capital / revenue, change between three-year averages: 52.0 pp

- Working capital / revenue, final three-year average: 75.4%

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

- FY2021: -0.86×

- FY2022: 0.14×

- FY2023: 0.95×

- FY2024: 0.79×

- FY2025: 0.79×

### 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: 12.2% vs 10.6%

- Per-share earnings: 1.35 to 1.81 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 4.9%

- Ordinary dilution, 5-year annual growth: 0.1%

- Market cap gain: CNY 33B

- Cumulative retained earnings: CNY 26B

- Diluted shares, 10-year annual growth: 4.9%

- Diluted shares, 5-year annual growth: 0.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 3.7%

- Per-share value change: CNY 0.46

- Per-share value, starting three-year median: CNY 1.35

- Per-share value, ending three-year median: CNY 1.81

- Buybacks concentrated in cheaper years (correlation): -0.49

- Average buyback yield: 0.3%

- Buyback history: 6 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 1.7B

- Cumulative net income, 10 years: CNY 38B

- ROIC, first three-year median: 12.2%

- ROIC, last three-year median: 10.6%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 1.64

- FY2017: CNY 1.32

- FY2018: CNY 1.68

- FY2019: CNY 1.74

- FY2020: CNY 3.01

- FY2021: CNY 1.59

- FY2022: CNY 1.89

- FY2023: CNY 1.73

- FY2024: CNY 1.81

- FY2025: CNY 2.10

### accounting: pass

- Sloan accruals: -11.7%

- Receivables to sales index (DSRI): 0.61×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 5.13×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.03×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -7.7%

- FY2017: 0.6%

- FY2018: 1.5%

- FY2019: -2.2%

- FY2020: 2.3%

- FY2021: -4.4%

- FY2022: -1.0%

- FY2023: -1.5%

- FY2024: -8.2%

- FY2025: -11.7%

## Holders

## Price story

Down 59% since Oct 2021 · sales -8.3%

Story as of 2026-10-16T10:00:07.324Z; price observation 2026-10-15.

Price needs cash profits to grow 1.6% a year for ten years

### Sales · FY2024–2025

sales -8.3%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 20B 

- FY2017: CNY 23B 

- FY2018: CNY 27B 

- FY2019: CNY 30B 

- FY2020: CNY 33B 

- FY2021: CNY 39B 

- FY2022: CNY 46B 

- FY2023: CNY 57B 

- FY2024: CNY 65B 

- FY2025: CNY 59B 

### Gross margin · FY2025

gross margin 26%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 29.7% 

- FY2017: 29.2% 

- FY2018: 29.5% 

- FY2019: 28.9% 

- FY2020: 27.6% 

- FY2021: 24.1% 

- FY2022: 23.0% 

- FY2023: 21.5% 

- FY2024: 23.1% 

- FY2025: 26.0% 

## Owner memo

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

### How it makes money

Operates in electrical equipment & parts; annual sales are CNY 59.1 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:23.084Z); FY2025: revenue 59144847908.43; grossProfit 15378949336.51; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 601877.SHG: Zhejiang Chint Electrics Co., Ltd., through its subsidiaries, develops and sells low-voltage electrical products in China. It offers low-voltage products, including circuit breakers, AC contactors, fuse sets, CBA busbars, fuse holders, and surge protective devices; power transmission and distribution products comprising MV oil-immersed transformers, mobile substations, ring main units, and natural ester oil-immersed power transformers; low voltage switchgear and software that include DB4 series waterproof distribution box, NX9/NX9G power distribution box, NXW5 wall mounting enclosure, PVBx combiner box, temperature monitoring system, EnergiX-M distribution boards, and Chint Elec-Calc software for electrical calculation; and EC2A, an EV charging product. The company also provides instruments and meters for gas and electricity, such as CHD130 single phase DIN-rail meter, CHG540 data concentrator, CHG580 smart gateway, CHS390, CHS320 three phase smart meter, and CHU630 as well as CHS120, CHS150, and CHS160 single phase smart meters. In addition, it offers transmission grid, distribution grid, buildings, generator equipment, pumps and vacuum equipment, mining machinery, HVAC, elevator, data center, residential PV and ESS, utility PV and ESS, commercial and industry PV, metallurgical, oil and gas, rail transportation, and mining and petrochemical solutions. Zhejiang Chint Electrics Co., Ltd. was founded in 1984 and is headquartered in Yueqing, China.

### Why customers stay

Margins ranged from 21.5% to 26% during 2023–25; it earns 11% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:23.084Z); FY2023: grossProfit / revenue = 21.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:23.084Z); FY2024: grossProfit / revenue = 23.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:23.084Z); FY2025: grossProfit / revenue = 26%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:23.084Z); 10-year return on capital observations [[2016,0.11485307116449535],[2017,0.12159985379255284],[2018,0.14189474100211158],[2019,0.12832679914532488],[2020,0.16446385769526642],[2021,0.08284254613109757],[2022,0.09839993387830387],[2023,0.10569473228146706],[2024,0.06179316374722616],[2025,0.10552009981138348]]; median 0.11027390172298121. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:23.084Z); FY2017: growth capex 1221205682.4009442; upkeep 2012110818.979056; owner earnings 1916855783.020944. Growth capex / owner earnings = 0.6370879297326881.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:23.084Z); FY2018: growth capex 1877295079.3201678; upkeep 1733199615.8698323; owner earnings 3017892120.130168. Growth capex / owner earnings = 0.6220550651224723.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:23.084Z); FY2019: growth capex 1634382799.5692415; upkeep 3276718311.820759; owner earnings 1787705409.1792412. Growth capex / owner earnings = 0.9142349691270487.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:23.084Z); FY2020: growth capex 2189742676.971325; upkeep 4767374308.098675; owner earnings 3453156691.901325. Growth capex / owner earnings = 0.6341278060468324.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:23.084Z); FY2022: growth capex 5044455925.868218; upkeep 5625751426.361781; owner earnings 561892542.1202073. Growth capex / owner earnings = 8.977616799884565.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:23.084Z); FY2023: growth capex 2420453068; upkeep 1943260000; owner earnings 3490284110.2506475. Growth capex / owner earnings = 0.6934831066878908.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:23.084Z); FY2024: growth capex 1009123421; upkeep 1942180000; owner earnings 3051346420.6986294. Growth capex / owner earnings = 0.3307141444690352.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:23.084Z); FY2025: growth capex 0; upkeep 1885144718.12; owner earnings 3566946646.6665654. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:23.084Z); Dividend observations: [[2016,1240324601.69],[2017,1172176272.1],[2018,2501158808.22],[2019,1290743949],[2020,1074484488],[2021,1074484488],[2022,851265790],[2023,1638758939],[2024,1181932936],[2025,2253230141.4]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 54.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 601877.SHG SharesStats.PercentInsiders = 54.38699999999999 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 1.6% yearly over ten years; actual growth was 1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:23.084Z); Ten-year compound average after fade. Initial solved rate 0.010230176439523953. Price 24.58; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.5072659731414082 → FY2025 1.664054781578643. Closing-price date 2026-10-15.

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

- 2016-10: CNY 21.35 per share

- 2016-11: CNY 21.87 per share

- 2016-12: CNY 20.00 per share

- 2017-01: CNY 19.69 per share

- 2017-02: CNY 20.12 per share

- 2017-03: CNY 20.09 per share

- 2017-04: CNY 19.39 per share

- 2017-05: CNY 18.50 per share

- 2017-06: CNY 20.09 per share

- 2017-07: CNY 19.64 per share

- 2017-08: CNY 19.22 per share

- 2017-09: CNY 21.39 per share

- 2017-10: CNY 25.47 per share

- 2017-11: CNY 24.07 per share

- 2017-12: CNY 26.15 per share

- 2018-01: CNY 24.80 per share

- 2018-02: CNY 23.29 per share

- 2018-03: CNY 26.33 per share

- 2018-04: CNY 28.34 per share

- 2018-05: CNY 27.44 per share

- 2018-06: CNY 22.32 per share

- 2018-07: CNY 23.12 per share

- 2018-08: CNY 22.79 per share

- 2018-09: CNY 23.04 per share

- 2018-10: CNY 22.75 per share

- 2018-11: CNY 22.60 per share

- 2018-12: CNY 24.24 per share

- 2019-01: CNY 25.56 per share

- 2019-02: CNY 25.24 per share

- 2019-03: CNY 26.80 per share

- 2019-04: CNY 24.90 per share

- 2019-05: CNY 23.63 per share

- 2019-06: CNY 23.09 per share

- 2019-07: CNY 24.00 per share

- 2019-08: CNY 22.40 per share

- 2019-09: CNY 21.83 per share

- 2019-10: CNY 22.82 per share

- 2019-11: CNY 23.88 per share

- 2019-12: CNY 26.80 per share

- 2020-01: CNY 26.66 per share

- 2020-02: CNY 26.97 per share

- 2020-03: CNY 23.65 per share

- 2020-04: CNY 24.90 per share

- 2020-05: CNY 25.43 per share

- 2020-06: CNY 26.35 per share

- 2020-07: CNY 31.70 per share

- 2020-08: CNY 34.47 per share

- 2020-09: CNY 30.27 per share

- 2020-10: CNY 29.32 per share

- 2020-11: CNY 32.83 per share

- 2020-12: CNY 39.16 per share

- 2021-01: CNY 36.99 per share

- 2021-02: CNY 34.26 per share

- 2021-03: CNY 36.30 per share

- 2021-04: CNY 33.29 per share

- 2021-05: CNY 32.17 per share

- 2021-06: CNY 33.38 per share

- 2021-07: CNY 42.35 per share

- 2021-08: CNY 62.95 per share

- 2021-09: CNY 56.60 per share

- 2021-10: CNY 60.24 per share

- 2021-11: CNY 51.80 per share

- 2021-12: CNY 53.89 per share

- 2022-01: CNY 47.50 per share

- 2022-02: CNY 49.92 per share

- 2022-03: CNY 39.58 per share

- 2022-04: CNY 32.69 per share

- 2022-05: CNY 36.67 per share

- 2022-06: CNY 35.78 per share

- 2022-07: CNY 36.70 per share

- 2022-08: CNY 31.63 per share

- 2022-09: CNY 26.78 per share

- 2022-10: CNY 25.40 per share

- 2022-11: CNY 28.76 per share

- 2022-12: CNY 27.70 per share

- 2023-01: CNY 32.15 per share

- 2023-02: CNY 30.00 per share

- 2023-03: CNY 27.97 per share

- 2023-04: CNY 26.05 per share

- 2023-05: CNY 26.15 per share

- 2023-06: CNY 27.65 per share

- 2023-07: CNY 28.31 per share

- 2023-08: CNY 24.78 per share

- 2023-09: CNY 23.29 per share

- 2023-10: CNY 23.09 per share

- 2023-11: CNY 21.93 per share

- 2023-12: CNY 21.51 per share

- 2024-01: CNY 18.64 per share

- 2024-02: CNY 20.58 per share

- 2024-03: CNY 20.19 per share

- 2024-04: CNY 20.65 per share

- 2024-05: CNY 21.37 per share

- 2024-06: CNY 19.06 per share

- 2024-07: CNY 19.28 per share

- 2024-08: CNY 17.55 per share

- 2024-09: CNY 22.74 per share

- 2024-10: CNY 23.34 per share

- 2024-11: CNY 22.75 per share

- 2024-12: CNY 23.41 per share

- 2025-01: CNY 22.12 per share

- 2025-02: CNY 23.37 per share

- 2025-03: CNY 23.55 per share

- 2025-04: CNY 22.27 per share

- 2025-05: CNY 21.91 per share

- 2025-06: CNY 22.67 per share

- 2025-07: CNY 22.75 per share

- 2025-08: CNY 27.41 per share

- 2025-09: CNY 30.71 per share

- 2025-10: CNY 28.69 per share

- 2025-11: CNY 28.10 per share

- 2025-12: CNY 27.89 per share

- 2026-01: CNY 29.23 per share

- 2026-02: CNY 33.04 per share

- 2026-03: CNY 32.65 per share

- 2026-04: CNY 32.73 per share

- 2026-05: CNY 29.14 per share

- 2026-06: CNY 25.07 per share

- 2026-07: CNY 25.22 per share

- 2026-08: CNY 25.68 per share

- 2026-09: CNY 24.95 per share

- 2026-10: CNY 25.43 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 24.98 per share, central CNY 34.63 per share, high CNY 40.25 per share

- FY2017: low CNY 19.39 per share, central CNY 26.34 per share, high CNY 30.38 per share

- FY2018: low CNY 21.71 per share, central CNY 29.92 per share, high CNY 34.69 per share

- FY2019: low CNY 17.38 per share, central CNY 22.94 per share, high CNY 26.48 per share

- FY2020: low CNY 19.84 per share, central CNY 27.28 per share, high CNY 31.61 per share

- FY2021: low CNY 23.68 per share, central CNY 32.47 per share, high CNY 37.59 per share

- FY2022: low CNY 18.96 per share, central CNY 20.89 per share, high CNY 23.46 per share

- FY2023: low CNY 23.70 per share, central CNY 29.87 per share, high CNY 34.30 per share

- FY2024: low CNY 19.73 per share, central CNY 22.38 per share, high CNY 25.41 per share

- FY2025: low CNY 19.06 per share, central CNY 21.57 per share, high CNY 24.37 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.