# Gongniu Group (603195.SHG)

Canonical: https://gigainvestors.com/s/603195.SHG

Analysis as of: 2026-10-16T07:35:49.984Z. Financial observations: FY2017–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: CNY 38.84 per share; close as of 2026-10-15.

Estimated value: low CNY 30.33 per share, central CNY 33.39 per share, high CNY 37.45 per share. Buy at or below the central value CNY 33.39 per share. Valuation as of 2026-10-16T07:35:49.984Z; scenarios are not confidence intervals.

Expected annual return: 8.7% at the stated quote. About 8.7% 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

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

- Financial history: 9 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.12×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.21×

- FY2018: 0.22×

- FY2019: 0.28×

- FY2020: 0.28×

- FY2021: 0.29×

- FY2022: 0.27×

- FY2023: 0.30×

- FY2024: 0.30×

- FY2025: 0.28×

### moat: pass

- ROIC, median of available years: >100%

- ROIC, second-lowest year: 59.8%

- Typical minus recent gross margin: -3.1 pp

- Typical gross margin (annual median): 40.1%

- Recent gross margin (lower of latest and 3-year median): 43.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.5%

- ROIC including acquisitions, ten-year median: >100%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 72.4%

- FY2018: 55.6%

- FY2019: 59.8%

- FY2020: 74.0%

- FY2021: >100%

- FY2022: >100%

- FY2023: >100%

- FY2024: >100%

- FY2025: >100%

### economics: pass

- Owner earnings / net income, 5-yr: 0.93×

- Cash conversion uses consolidated totals: No

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

- Net income, five-year total: CNY 18B

- Return on incremental invested capital: 60.9%

- Working capital / revenue, annual change: 1.0 pp

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

- FY2021: 1.00×

- FY2022: 0.83×

- FY2023: 0.97×

- FY2024: 0.89×

- FY2025: 0.95×

### management: pass

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 59.8% vs 274.2%

- Per-share earnings: 1.45 to 2.26 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 7.1%

- Diluted shares, 5-year annual growth: 7.1%

- Per-share value growth: 7.7%

- Per-share value change: CNY 0.81

- Per-share value, starting three-year median: CNY 1.45

- Per-share value, ending three-year median: CNY 2.26

- Buybacks concentrated in cheaper years (correlation): 0.70

- Average buyback yield: 0.2%

- Buyback history: 5 years

- Debt-funded buybacks: No

- ROIC, first three-year median: 59.8%

- ROIC, last three-year median: >100%

Chart: Earnings per share; fiscal year observations.

- FY2017: CNY 1.11

- FY2018: CNY 1.45

- FY2019: CNY 1.99

- FY2020: CNY 1.81

- FY2021: CNY 2.15

- FY2022: CNY 1.77

- FY2023: CNY 2.15

- FY2024: CNY 2.36

- FY2025: CNY 2.26

### accounting: pass

- Sloan accruals: -3.0%

- Receivables to sales index (DSRI): 1.00×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.17×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.02×

Chart: Sloan accruals; fiscal year observations.

- FY2017: 3.1%

- FY2018: -4.5%

- FY2019: 0.1%

- FY2020: -9.0%

- FY2021: -1.5%

- FY2022: 0.8%

- FY2023: -4.8%

- FY2024: 2.6%

- FY2025: -3.0%

## Holders

## Price story

Down 35% since May 2024 · sales -4.8%

Story as of 2026-10-16T10:00:06.159Z; price observation 2026-10-15.

Price needs cash profits to grow 3.3% a year for ten years

### Sales · FY2024–2025

sales -4.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: CNY 7.2B 

- FY2018: CNY 9.1B 

- FY2019: CNY 10B 

- FY2020: CNY 10B 

- FY2021: CNY 12B 

- FY2022: CNY 14B 

- FY2023: CNY 16B 

- FY2024: CNY 17B 

- FY2025: CNY 16B 

### Gross margin · FY2025

gross margin 43.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 37.7% 

- FY2018: 36.6% 

- FY2019: 41.4% 

- FY2020: 40.1% 

- FY2021: 36.9% 

- FY2022: 37.9% 

- FY2023: 43.1% 

- FY2024: 43.1% 

- FY2025: 43.1% 

## Owner memo

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

### How it makes money

Operates in electrical equipment & parts; annual sales are CNY 16 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:49.984Z); FY2025: revenue 16026312556.45; grossProfit 6913125910.09; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 603195.SHG: Goneo Group Co., Ltd. provides electrical products. It offers safety sockets, decorative switches, safe charging stations, digital products, love eye lighting, smart no main light, power tools, smart security locks, home appliances, safety circuit breakers, computer room power distribution, and energy storage products. The company was founded in 1995 and is based in Cixi, China. Goneo Group Co., Ltd. operates as a subsidiary of Ningbo Liangji Industrial Co., Ltd.

### Why customers stay

Margins ranged from 43.1% to 43.1% during 2023–25; it earns over 100% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:49.984Z); FY2023: grossProfit / revenue = 43.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:49.984Z); FY2024: grossProfit / revenue = 43.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:49.984Z); FY2025: grossProfit / revenue = 43.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:49.984Z); 9-year return on capital observations [[2017,0.7243177800086216],[2018,0.555880432492542],[2019,0.5975347503553815],[2020,0.7397763611797495],[2021,1.8715845010649286],[2022,1.959469000032142],[2023,7.086107635649972],[2024,2.223851520936472],[2025,2.7424875230213934]]; median 1.8715845010649286. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 9 of 9 years; bought back CNY 433.3 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:49.984Z); FY2017: growth capex 0; upkeep 413872165.87; owner earnings 917787713.13. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:49.984Z); FY2018: growth capex 255390434.84621614; upkeep 229878346.88378388; owner earnings 1611563775.1162162. Growth capex / owner earnings = 0.15847367556260622.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:49.984Z); FY2019: growth capex 136048586.32256955; upkeep 312556440.23743045; owner earnings 2187761133.7625694. Growth capex / owner earnings = 0.06218621595520787.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:49.984Z); FY2020: growth capex 1506283.3104845285; upkeep 417429413.82951546; owner earnings 2129554252.1704845. Growth capex / owner earnings = 0.0007073232855886599.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:49.984Z); FY2021: growth capex 252493390.86; upkeep 222882455; owner earnings 2779342764.522. Growth capex / owner earnings = 0.09084643825981091.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:49.984Z); FY2022: growth capex 250560324.31927407; upkeep 768263734.040726; owner earnings 2662452232.115274. Growth capex / owner earnings = 0.09410885246951757.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:49.984Z); FY2023: growth capex 250761670.05439556; upkeep 404440326.06560445; owner earnings 3739434905.4563956. Growth capex / owner earnings = 0.06705870710264182.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:49.984Z); FY2024: growth capex 193277527.53530025; upkeep 745242090.4646997; owner earnings 3784959883.3813004. Growth capex / owner earnings = 0.05106461719288698.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:49.984Z); FY2025: growth capex 0; upkeep 500139110.24; owner earnings 3881968837.472. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:49.984Z); Dividend observations: [[2017,2085746382.05],[2018,184017923.42],[2019,2286031250],[2020,2280000000],[2021,1201151800],[2022,1442833248],[2023,2011974345],[2024,2778937711],[2025,3108832113.4]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:49.984Z); FY2025: cash repurchases 433253812.37863827 CNY.

### Are managers owners

Insiders own 83.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 603195.SHG SharesStats.PercentInsiders = 83.06400000000001 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 3.3% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:49.984Z); Ten-year compound average after fade. Initial solved rate 0.034976760871098134. Price 38.84; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

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

- 2020-03: CNY 51.58 per share

- 2020-04: CNY 50.02 per share

- 2020-05: CNY 60.71 per share

- 2020-06: CNY 53.47 per share

- 2020-07: CNY 50.40 per share

- 2020-08: CNY 53.22 per share

- 2020-09: CNY 50.26 per share

- 2020-10: CNY 66.09 per share

- 2020-11: CNY 62.24 per share

- 2020-12: CNY 68.33 per share

- 2021-01: CNY 72.42 per share

- 2021-02: CNY 62.92 per share

- 2021-03: CNY 59.48 per share

- 2021-04: CNY 65.19 per share

- 2021-05: CNY 68.42 per share

- 2021-06: CNY 67.23 per share

- 2021-07: CNY 61.54 per share

- 2021-08: CNY 58.69 per share

- 2021-09: CNY 54.34 per share

- 2021-10: CNY 52.46 per share

- 2021-11: CNY 52.43 per share

- 2021-12: CNY 55.68 per share

- 2022-01: CNY 51.65 per share

- 2022-02: CNY 49.37 per share

- 2022-03: CNY 42.74 per share

- 2022-04: CNY 47.72 per share

- 2022-05: CNY 48.52 per share

- 2022-06: CNY 50.90 per share

- 2022-07: CNY 48.75 per share

- 2022-08: CNY 49.69 per share

- 2022-09: CNY 46.76 per share

- 2022-10: CNY 39.83 per share

- 2022-11: CNY 45.42 per share

- 2022-12: CNY 47.68 per share

- 2023-01: CNY 50.40 per share

- 2023-02: CNY 54.22 per share

- 2023-03: CNY 52.58 per share

- 2023-04: CNY 49.33 per share

- 2023-05: CNY 50.39 per share

- 2023-06: CNY 47.32 per share

- 2023-07: CNY 50.00 per share

- 2023-08: CNY 52.22 per share

- 2023-09: CNY 51.09 per share

- 2023-10: CNY 52.09 per share

- 2023-11: CNY 48.16 per share

- 2023-12: CNY 47.12 per share

- 2024-01: CNY 45.77 per share

- 2024-02: CNY 50.25 per share

- 2024-03: CNY 50.86 per share

- 2024-04: CNY 58.87 per share

- 2024-05: CNY 59.63 per share

- 2024-06: CNY 55.09 per share

- 2024-07: CNY 50.09 per share

- 2024-08: CNY 48.40 per share

- 2024-09: CNY 59.47 per share

- 2024-10: CNY 52.02 per share

- 2024-11: CNY 50.82 per share

- 2024-12: CNY 50.17 per share

- 2025-01: CNY 50.88 per share

- 2025-02: CNY 53.56 per share

- 2025-03: CNY 51.44 per share

- 2025-04: CNY 50.87 per share

- 2025-05: CNY 50.57 per share

- 2025-06: CNY 48.25 per share

- 2025-07: CNY 47.16 per share

- 2025-08: CNY 47.14 per share

- 2025-09: CNY 44.66 per share

- 2025-10: CNY 43.67 per share

- 2025-11: CNY 42.85 per share

- 2025-12: CNY 40.83 per share

- 2026-01: CNY 41.78 per share

- 2026-02: CNY 43.55 per share

- 2026-03: CNY 41.85 per share

- 2026-04: CNY 44.85 per share

- 2026-05: CNY 41.58 per share

- 2026-06: CNY 39.15 per share

- 2026-07: CNY 41.73 per share

- 2026-08: CNY 38.85 per share

- 2026-09: CNY 38.71 per share

- 2026-10: CNY 39.09 per share

## Annual estimated value (CNY per share)

- FY2021: low CNY 29.91 per share, central CNY 32.97 per share, high CNY 37.03 per share

- FY2022: low CNY 24.34 per share, central CNY 26.83 per share, high CNY 30.15 per share

- FY2023: low CNY 28.63 per share, central CNY 31.49 per share, high CNY 35.30 per share

- FY2024: low CNY 30.48 per share, central CNY 33.63 per share, high CNY 37.81 per share

- FY2025: low CNY 30.70 per share, central CNY 33.72 per share, high CNY 37.73 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.