# Dawning Information Industry (603019.SHG)

Canonical: https://gigainvestors.com/s/603019.SHG

Analysis as of: 2026-10-16T07:35:11.859Z. Financial observations: FY2011–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 66.99 per share; close as of 2026-10-15.

Estimated value: low CNY 7.95 per share, central CNY 10.30 per share, high CNY 11.67 per share. Buy at or below the central value CNY 10.30 per share. Valuation as of 2026-10-16T07:35:11.859Z; scenarios are not confidence intervals.

Expected annual return: 3.9% at the stated quote. About 3.9% 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: fail

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

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.41×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.05×

- FY2017: 0.06×

- FY2018: 0.06×

- FY2019: 0.08×

- FY2020: 0.10×

- FY2021: 0.13×

- FY2022: 0.15×

- FY2023: 0.15×

- FY2024: 0.17×

- FY2025: 0.16×

### moat: fail

- ROIC median below threshold

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

- ROIC, median of available years: 12.8%

- ROIC, second-lowest year: 8.0%

- Typical minus recent gross margin: -6.6 pp

- Typical gross margin (annual median): 22.3%

- Recent gross margin (lower of latest and 3-year median): 28.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 7.7%

- ROIC including acquisitions, ten-year median: 6.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 7.6%

- FY2017: 8.6%

- FY2018: 8.0%

- FY2019: 16.1%

- FY2020: 22.1%

- FY2021: 16.6%

- FY2022: 12.3%

- FY2023: 13.2%

- FY2024: 14.3%

- FY2025: 12.5%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.50×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 4.3B

- Net income, five-year total: CNY 8.6B

- Return on incremental invested capital: 24.6%

- Working capital / revenue, annual change: -0.0 pp

- Working capital / revenue, change between three-year averages: -3.9 pp

- Working capital / revenue, final three-year average: 26.0%

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

- FY2021: 0.10×

- FY2022: -0.22×

- FY2023: 0.28×

- FY2024: 0.97×

- FY2025: 1.00×

### 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: 8.0% vs 13.2%

- Per-share earnings: 0.18 to 1.31 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.9%

- Ordinary dilution, 5-year annual growth: 0.6%

- Market cap gain: CNY 108B

- Cumulative retained earnings: CNY 8.1B

- Diluted shares, 10-year annual growth: 0.9%

- Diluted shares, 5-year annual growth: 0.6%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 27.9%

- Per-share value change: CNY 1.13

- Per-share value, starting three-year median: CNY 0.18

- Per-share value, ending three-year median: CNY 1.31

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 0.0%

- Buyback history: 3 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 4.1B

- Cumulative net income, 10 years: CNY 11B

- ROIC, first three-year median: 8.0%

- ROIC, last three-year median: 13.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.18

- FY2017: CNY 0.23

- FY2018: CNY 0.36

- FY2019: CNY 0.45

- FY2020: CNY 0.58

- FY2021: CNY 0.78

- FY2022: CNY 1.06

- FY2023: CNY 1.25

- FY2024: CNY 1.31

- FY2025: CNY 1.45

### accounting: pass

- Sloan accruals: 2.0%

- Receivables to sales index (DSRI): 0.95×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.62×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.17×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 7.6%

- FY2017: 2.6%

- FY2018: -1.5%

- FY2019: -15.4%

- FY2020: -7.1%

- FY2021: 6.4%

- FY2022: 1.3%

- FY2023: -5.4%

- FY2024: -2.2%

- FY2025: 2.0%

## Holders

## Price story

Down 44% since Sep 2025 · sales +13.9%

Story as of 2026-10-16T10:00:04.041Z; price observation 2026-10-15.

Price needs cash profits to grow 34.5% a year for ten years

### Sales · FY2024–2025

sales +13.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 4.4B 

- FY2017: CNY 6.3B 

- FY2018: CNY 9.1B 

- FY2019: CNY 9.5B 

- FY2020: CNY 10B 

- FY2021: CNY 11B 

- FY2022: CNY 13B 

- FY2023: CNY 14B 

- FY2024: CNY 13B 

- FY2025: CNY 15B 

### Gross margin · FY2024

gross margin 28.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 20.5% 

- FY2017: 17.2% 

- FY2018: 18.1% 

- FY2019: 21.4% 

- FY2020: 21.6% 

- FY2021: 23.0% 

- FY2022: 25.6% 

- FY2023: 26.0% 

- FY2024: 28.9% 

## Owner memo

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

### How it makes money

Operates in computer hardware; annual sales are CNY 15 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:11.859Z); FY2025: revenue 14970101000; grossProfit 14970101000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 603019.SHG: Dawning Information Industry Co., Ltd. engages in research, development, and manufacturing of computers, storage, security, and data center products. It offers high-end computer products that include rack servers, high-density servers, blade servers, and hyper-converged all-in-one products; workstations; storage products, including distributed storage series, centralized all-flash storage series, and disk arrays; network security products, which include traffic analysis and network security platform; cloud computing services; and data center solutions, such as liquid cooling, high-density design, power management, large-scale computing power scheduling platform, and automated operation and maintenance services. The company also provides big data platforms, customized development of standard hardware systems for cloud data products, full-stack cloud services, and digital's cold plate products. Dawning Information Industry Co., Ltd. was incorporated in 2006 and is based in Beijing, China.

### Why customers stay

Margins ranged from 26% to 100% during 2023–25; it earns 12.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:11.859Z); FY2023: grossProfit / revenue = 26%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:11.859Z); FY2024: grossProfit / revenue = 28.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:11.859Z); FY2025: grossProfit / revenue = 100%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:11.859Z); 10-year return on capital observations [[2016,0.07590843849396242],[2017,0.08592070858317845],[2018,0.07959331476583129],[2019,0.16066088762534583],[2020,0.22095247073071628],[2021,0.166438511747403],[2022,0.1228788889246463],[2023,0.13159394241788294],[2024,0.14264207115169952],[2025,0.12509339722643045]]; median 0.1283436698221567. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 5.4% of cash earnings on expansion; earns 24.6% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:11.859Z); FY2016: growth capex 193251244.70572898; upkeep 129074922.27427104; owner earnings 169676657.72572896. Growth capex / owner earnings = 1.1389383035709413.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:11.859Z); FY2017: growth capex 484152647.65571207; upkeep 108872082.20428795; owner earnings 302466513.79571205. Growth capex / owner earnings = 1.6006818129385127.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:11.859Z); FY2018: growth capex 475157489.85; upkeep 158389544; owner earnings 430604632. Growth capex / owner earnings = 1.1034658118819307.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:11.859Z); FY2019: growth capex 86769922.03893709; upkeep 667752663.9910629; owner earnings 163307498.00893712. Growth capex / owner earnings = 0.5313284637683234.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:11.859Z); FY2020: growth capex 109706198.71444303; upkeep 444461041.7055569; owner earnings 693955137.2944431. Growth capex / owner earnings = 0.15808831553889774.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:11.859Z); FY2021: growth capex 186849310.48846602; upkeep 1441343285.061534; owner earnings 117071457.64646602. Growth capex / owner earnings = 1.5960278811315063.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:11.859Z); FY2023: growth capex 243725660.0788536; upkeep 1923255128.1211462; owner earnings 510910787.0168538. Growth capex / owner earnings = 0.47704152324114785.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:11.859Z); FY2024: growth capex 0; upkeep 859639964; owner earnings 1850114222.318. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:11.859Z); FY2025: growth capex 113416940.23000002; upkeep 803822000; owner earnings 2112271582.044. Growth capex / owner earnings = 0.0536942982115249.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:11.859Z); Incremental return on capital 0.24584783307940972, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:11.859Z); Dividend observations: [[2016,99940212.23],[2017,144699522.43],[2018,194699939.29],[2019,90029120],[2020,130205090],[2021,203102056],[2022,234035835],[2023,502770682],[2024,306629686],[2025,408280550.82]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 24.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 603019.SHG SharesStats.PercentInsiders = 24.445 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 34.5% yearly over ten years; actual growth was 27%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:11.859Z); Ten-year compound average after fade. Initial solved rate 0.4956097565526224. Price 66.99; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.13207421580692877 → FY2025 1.4461677968121738. Closing-price date 2026-10-15.

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

- 2016-11: CNY 15.80 per share

- 2016-12: CNY 14.19 per share

- 2017-01: CNY 12.72 per share

- 2017-02: CNY 12.93 per share

- 2017-03: CNY 13.42 per share

- 2017-04: CNY 13.66 per share

- 2017-05: CNY 14.83 per share

- 2017-06: CNY 14.36 per share

- 2017-07: CNY 12.71 per share

- 2017-08: CNY 14.65 per share

- 2017-09: CNY 18.82 per share

- 2017-10: CNY 19.91 per share

- 2017-11: CNY 22.20 per share

- 2017-12: CNY 20.53 per share

- 2018-01: CNY 19.41 per share

- 2018-02: CNY 21.99 per share

- 2018-03: CNY 27.91 per share

- 2018-04: CNY 25.51 per share

- 2018-05: CNY 22.99 per share

- 2018-06: CNY 23.40 per share

- 2018-07: CNY 25.47 per share

- 2018-08: CNY 26.72 per share

- 2018-09: CNY 23.92 per share

- 2018-10: CNY 21.13 per share

- 2018-11: CNY 20.44 per share

- 2018-12: CNY 18.31 per share

- 2019-01: CNY 19.49 per share

- 2019-02: CNY 23.61 per share

- 2019-03: CNY 30.76 per share

- 2019-04: CNY 28.91 per share

- 2019-05: CNY 27.28 per share

- 2019-06: CNY 25.07 per share

- 2019-07: CNY 25.40 per share

- 2019-08: CNY 25.29 per share

- 2019-09: CNY 24.52 per share

- 2019-10: CNY 23.87 per share

- 2019-11: CNY 24.26 per share

- 2019-12: CNY 24.70 per share

- 2020-01: CNY 29.75 per share

- 2020-02: CNY 32.27 per share

- 2020-03: CNY 31.19 per share

- 2020-04: CNY 34.51 per share

- 2020-05: CNY 37.22 per share

- 2020-06: CNY 38.40 per share

- 2020-07: CNY 44.38 per share

- 2020-08: CNY 45.19 per share

- 2020-09: CNY 37.72 per share

- 2020-10: CNY 35.78 per share

- 2020-11: CNY 35.36 per share

- 2020-12: CNY 34.23 per share

- 2021-01: CNY 29.63 per share

- 2021-02: CNY 30.83 per share

- 2021-03: CNY 28.91 per share

- 2021-04: CNY 25.88 per share

- 2021-05: CNY 27.58 per share

- 2021-06: CNY 27.61 per share

- 2021-07: CNY 32.28 per share

- 2021-08: CNY 28.32 per share

- 2021-09: CNY 26.82 per share

- 2021-10: CNY 27.47 per share

- 2021-11: CNY 27.96 per share

- 2021-12: CNY 27.57 per share

- 2022-01: CNY 30.35 per share

- 2022-02: CNY 32.96 per share

- 2022-03: CNY 29.69 per share

- 2022-04: CNY 25.80 per share

- 2022-05: CNY 24.93 per share

- 2022-06: CNY 29.02 per share

- 2022-07: CNY 28.80 per share

- 2022-08: CNY 26.29 per share

- 2022-09: CNY 23.72 per share

- 2022-10: CNY 24.89 per share

- 2022-11: CNY 23.48 per share

- 2022-12: CNY 22.14 per share

- 2023-01: CNY 24.11 per share

- 2023-02: CNY 32.33 per share

- 2023-03: CNY 38.33 per share

- 2023-04: CNY 50.70 per share

- 2023-05: CNY 53.50 per share

- 2023-06: CNY 50.90 per share

- 2023-07: CNY 44.90 per share

- 2023-08: CNY 40.69 per share

- 2023-09: CNY 38.54 per share

- 2023-10: CNY 36.71 per share

- 2023-11: CNY 37.05 per share

- 2023-12: CNY 39.49 per share

- 2024-01: CNY 31.35 per share

- 2024-02: CNY 49.71 per share

- 2024-03: CNY 47.75 per share

- 2024-04: CNY 47.68 per share

- 2024-05: CNY 40.87 per share

- 2024-06: CNY 41.50 per share

- 2024-07: CNY 43.90 per share

- 2024-08: CNY 36.88 per share

- 2024-09: CNY 47.72 per share

- 2024-10: CNY 61.20 per share

- 2024-11: CNY 84.80 per share

- 2024-12: CNY 72.32 per share

- 2025-01: CNY 66.99 per share

- 2025-02: CNY 71.74 per share

- 2025-03: CNY 66.36 per share

- 2025-04: CNY 63.32 per share

- 2025-05: CNY 61.90 per share

- 2025-06: CNY 70.40 per share

- 2025-07: CNY 68.96 per share

- 2025-08: CNY 88.50 per share

- 2025-09: CNY 119.25 per share

- 2025-10: CNY 106.45 per share

- 2025-11: CNY 99.16 per share

- 2025-12: CNY 85.64 per share

- 2026-01: CNY 89.77 per share

- 2026-02: CNY 92.18 per share

- 2026-03: CNY 78.60 per share

- 2026-04: CNY 92.96 per share

- 2026-05: CNY 88.22 per share

- 2026-06: CNY 107.23 per share

- 2026-07: CNY 83.46 per share

- 2026-08: CNY 88.27 per share

- 2026-09: CNY 79.52 per share

- 2026-10: CNY 70.92 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 2.55 per share, central CNY 2.76 per share, high CNY 3.03 per share

- FY2017: low CNY 3.93 per share, central CNY 4.23 per share, high CNY 4.62 per share

- FY2018: low CNY 5.55 per share, central CNY 6.10 per share, high CNY 6.83 per share

- FY2019: low CNY 5.91 per share, central CNY 6.43 per share, high CNY 7.13 per share

- FY2020: low CNY 9.38 per share, central CNY 9.89 per share, high CNY 10.57 per share

- FY2021: low CNY 8.94 per share, central CNY 11.00 per share, high CNY 12.20 per share

- FY2022: low CNY 6.13 per share, central CNY 7.02 per share, high CNY 7.54 per share

- FY2023: low CNY 6.98 per share, central CNY 7.96 per share, high CNY 8.52 per share

- FY2024: low CNY 8.65 per share, central CNY 10.52 per share, high CNY 11.61 per share

- FY2025: low CNY 9.02 per share, central CNY 11.14 per share, high CNY 12.38 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.