# Shanghai Putailai New Energy Technology Co.Ltd. (603659.SHG)

Canonical: https://gigainvestors.com/s/603659.SHG

Analysis as of: 2026-10-16T07:36:56.459Z. Financial observations: FY2013–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: CNY 19.66 per share; close as of 2026-10-15.

Estimated value: low CNY 22.71 per share, central CNY 29.88 per share, high CNY 34.05 per share. Buy at or below the central value CNY 29.88 per share. Valuation as of 2026-10-16T07:36:56.459Z; scenarios are not confidence intervals.

Expected annual return: 14.9% at the stated quote. About 14.9% 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: 0.21×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.21×

- FY2017: 0.23×

- FY2018: 0.20×

- FY2019: 0.16×

- FY2020: 0.16×

- FY2021: 0.23×

- FY2022: 0.24×

- FY2023: 0.15×

- FY2024: 0.11×

- FY2025: 0.19×

### moat: fail

- Recent gross margin fell 5.6pp below the typical margin (limit 4pp)

- ROIC, median of available years: 20.5%

- ROIC, second-lowest year: 11.1%

- Typical minus recent gross margin: 5.6 pp

- Typical gross margin (annual median): 31.5%

- Recent gross margin (lower of latest and 3-year median): 26.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 20.1%

- ROIC including acquisitions, ten-year median: 8.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 39.6%

- FY2017: 27.7%

- FY2018: 23.4%

- FY2019: 17.2%

- FY2020: 17.5%

- FY2021: 24.9%

- FY2022: 26.9%

- FY2023: 14.6%

- FY2024: 7.7%

- FY2025: 11.1%

### 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: 0.40×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 4.1B

- Net income, five-year total: CNY 10B

- Return on incremental invested capital: 10.1%

- Working capital / revenue, annual change: 4.0 pp

- Working capital / revenue, change between three-year averages: 28.2 pp

- Working capital / revenue, final three-year average: 76.2%

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

- FY2021: 0.72×

- FY2022: 1.00×

- FY2023: -0.73×

- FY2024: -1.05×

- FY2025: 1.00×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 27.7% vs 11.1%

- Per-share earnings: 0.24 to 0.91 (three-year endpoint medians)

- 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: 3.5%

- Ordinary dilution, 5-year annual growth: 2.5%

- Market cap gain: CNY 35B

- Cumulative retained earnings: CNY 9.3B

- Diluted shares, 10-year annual growth: 3.5%

- Diluted shares, 5-year annual growth: 2.5%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 18.1%

- Per-share value change: CNY 0.67

- Per-share value, starting three-year median: CNY 0.24

- Per-share value, ending three-year median: CNY 0.91

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

- Average buyback yield: 0.8%

- Buyback history: 2 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 1.0B

- Cumulative net income, 10 years: CNY 13B

- ROIC, first three-year median: 27.7%

- ROIC, last three-year median: 11.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.24

- FY2017: CNY 0.27

- FY2018: CNY 0.34

- FY2019: CNY 0.38

- FY2020: CNY 0.36

- FY2021: CNY 0.86

- FY2022: CNY 1.53

- FY2023: CNY 0.91

- FY2024: CNY 0.56

- FY2025: CNY 1.12

### accounting: pass

- Sloan accruals: -0.7%

- Receivables to sales index (DSRI): 1.08×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 1.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.14×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.05×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 7.2%

- FY2017: 9.7%

- FY2018: 4.0%

- FY2019: 2.0%

- FY2020: -0.2%

- FY2021: 0.1%

- FY2022: 5.3%

- FY2023: 1.8%

- FY2024: -2.8%

- FY2025: -0.7%

## Holders

## Price story

Down 69% since Nov 2021 · sales +16.8%

Story as of 2026-10-16T10:00:08.362Z; price observation 2026-10-15.

Price needs cash profits to shrink 0.5% a year for ten years

### Sales · FY2024–2025

sales +16.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 1.7B 

- FY2017: CNY 2.2B 

- FY2018: CNY 3.3B 

- FY2019: CNY 4.8B 

- FY2020: CNY 5.3B 

- FY2021: CNY 9.0B 

- FY2022: CNY 15B 

- FY2023: CNY 15B 

- FY2024: CNY 13B 

- FY2025: CNY 16B 

### Gross margin · FY2025

gross margin 31.7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 34.4% 

- FY2017: 36.8% 

- FY2018: 31.3% 

- FY2019: 29.2% 

- FY2020: 31.1% 

- FY2021: 35.1% 

- FY2022: 35.0% 

- FY2023: 26.0% 

- FY2024: 22.4% 

- FY2025: 31.7% 

## Owner memo

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

### How it makes money

Operates in specialty chemicals; annual sales are CNY 15.7 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:56.459Z); FY2025: revenue 15711291195; grossProfit 4984367042; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 603659.SHG: Shanghai Putailai New Energy Technology Group Co.,Ltd., together with its subsidiaries, engages in the development and sale of materials of lithium-ion batteries and automation equipment in China and internationally. The company offers anode materials and graphitization; as well as ceramic and PVDF coating, fluoropolymer coating, ceramic and PVDF hybrid coated separators, ultra-thin ceramic coated separators, solvent-based coated separators, li-ion pouch cell packaging aluminum plastic films, lithium-ion battery electrode binders, nano alumina and boehmite, and PVDF resin. It also provides double deck high-speed coater-electrode coating machine, double layer gravure primer, separator coater, single layer extrusion coater, slitting machine, winding machine, filling machine, double head high speed stacking machine, and formation and grading equipment. The company was formerly known as Shanghai Putailai New Energy Technology Co.,Ltd. and changed its name to Shanghai Putailai New Energy Technology Group Co.,Ltd. in November 2025. Shanghai Putailai New Energy Technology Group Co.,Ltd. was founded in 2012 and is headquartered in Shanghai, China.

### Why customers stay

Margins ranged from 22.4% to 31.7% during 2023–25; it earns 20.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:56.459Z); FY2023: grossProfit / revenue = 26%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:56.459Z); FY2024: grossProfit / revenue = 22.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:56.459Z); FY2025: grossProfit / revenue = 31.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:56.459Z); 10-year return on capital observations [[2016,0.3960022832739881],[2017,0.27688153414211814],[2018,0.23423134401341172],[2019,0.17229675876507483],[2020,0.17510303306598],[2021,0.248625068952423],[2022,0.26902524802511874],[2023,0.14611838108879183],[2024,0.07653035925081368],[2025,0.11107509076119693]]; median 0.20466718853969584. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 22.4% of cash earnings on expansion; earns 10.1% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:56.459Z); FY2016: growth capex 151089276.5798002; upkeep 20566696.10019982; owner earnings 345892412.8998002. Growth capex / owner earnings = 0.4368100338285491.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:56.459Z); FY2017: growth capex 123218000.72081387; upkeep 163694754.93918616; owner earnings 317689467.06081384. Growth capex / owner earnings = 0.38785673903764273.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:56.459Z); FY2018: growth capex 250285236.84526658; upkeep 542038988.7347335; owner earnings 114454399.26526654. Growth capex / owner earnings = 2.1867681666406735.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:56.459Z); FY2019: growth capex 445652753.3791925; upkeep 606164648.4108075; owner earnings 160401902.5891925. Growth capex / owner earnings = 2.7783507937593472.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:56.459Z); FY2020: growth capex 192734185.05263913; upkeep 556873449.6973609; owner earnings 303785981.3026391. Growth capex / owner earnings = 0.6344406816476253.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:56.459Z); FY2021: growth capex 1852961394.4129655; upkeep 819015335.5270345; owner earnings 1266491301.5049655. Growth capex / owner earnings = 1.463066814759091.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:56.459Z); FY2022: growth capex 2309587598.53; upkeep 522120327; owner earnings 3101729542.59. Growth capex / owner earnings = 0.7446128254630006.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:56.459Z); FY2025: growth capex 527143914; upkeep 992022083; owner earnings 2357571800.566. Growth capex / owner earnings = 0.2235961228724591.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:56.459Z); Incremental return on capital 0.10100214432932077, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:56.459Z); Dividend observations: [[2016,975429.75],[2017,7025477.48],[2018,187277236.08],[2019,182572110],[2020,195848469],[2021,203371629],[2022,350507726],[2023,472882186],[2024,570792049],[2025,592453248]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 56% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 603659.SHG SharesStats.PercentInsiders = 56.032000000000004 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 0.5% yearly over ten years; actual growth was 32.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:56.459Z); Ten-year compound average after fade. Initial solved rate -0.01997182679981352. Price 19.66; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.06657915175195399 → FY2025 1.1206431780510642. Closing-price date 2026-10-15.

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

- 2017-12: CNY 13.63 per share

- 2018-01: CNY 11.29 per share

- 2018-02: CNY 9.77 per share

- 2018-03: CNY 9.77 per share

- 2018-04: CNY 9.77 per share

- 2018-05: CNY 14.17 per share

- 2018-06: CNY 15.74 per share

- 2018-07: CNY 13.37 per share

- 2018-08: CNY 11.52 per share

- 2018-09: CNY 11.85 per share

- 2018-10: CNY 9.71 per share

- 2018-11: CNY 12.39 per share

- 2018-12: CNY 11.67 per share

- 2019-01: CNY 11.35 per share

- 2019-02: CNY 12.30 per share

- 2019-03: CNY 13.30 per share

- 2019-04: CNY 12.61 per share

- 2019-05: CNY 11.34 per share

- 2019-06: CNY 11.58 per share

- 2019-07: CNY 13.30 per share

- 2019-08: CNY 12.40 per share

- 2019-09: CNY 12.61 per share

- 2019-10: CNY 13.26 per share

- 2019-11: CNY 17.27 per share

- 2019-12: CNY 20.97 per share

- 2020-01: CNY 22.03 per share

- 2020-02: CNY 20.45 per share

- 2020-03: CNY 14.78 per share

- 2020-04: CNY 19.04 per share

- 2020-05: CNY 21.43 per share

- 2020-06: CNY 25.37 per share

- 2020-07: CNY 26.20 per share

- 2020-08: CNY 24.39 per share

- 2020-09: CNY 26.75 per share

- 2020-10: CNY 27.45 per share

- 2020-11: CNY 24.81 per share

- 2020-12: CNY 27.68 per share

- 2021-01: CNY 24.46 per share

- 2021-02: CNY 21.60 per share

- 2021-03: CNY 23.40 per share

- 2021-04: CNY 27.96 per share

- 2021-05: CNY 35.80 per share

- 2021-06: CNY 47.10 per share

- 2021-07: CNY 44.13 per share

- 2021-08: CNY 52.76 per share

- 2021-09: CNY 59.31 per share

- 2021-10: CNY 61.31 per share

- 2021-11: CNY 62.76 per share

- 2021-12: CNY 55.38 per share

- 2022-01: CNY 49.07 per share

- 2022-02: CNY 50.17 per share

- 2022-03: CNY 48.46 per share

- 2022-04: CNY 40.94 per share

- 2022-05: CNY 44.34 per share

- 2022-06: CNY 58.21 per share

- 2022-07: CNY 48.86 per share

- 2022-08: CNY 43.71 per share

- 2022-09: CNY 38.48 per share

- 2022-10: CNY 34.42 per share

- 2022-11: CNY 38.28 per share

- 2022-12: CNY 35.79 per share

- 2023-01: CNY 38.07 per share

- 2023-02: CNY 34.68 per share

- 2023-03: CNY 34.42 per share

- 2023-04: CNY 36.01 per share

- 2023-05: CNY 35.52 per share

- 2023-06: CNY 38.22 per share

- 2023-07: CNY 39.39 per share

- 2023-08: CNY 32.72 per share

- 2023-09: CNY 29.29 per share

- 2023-10: CNY 25.00 per share

- 2023-11: CNY 22.95 per share

- 2023-12: CNY 20.93 per share

- 2024-01: CNY 16.46 per share

- 2024-02: CNY 18.76 per share

- 2024-03: CNY 19.28 per share

- 2024-04: CNY 18.51 per share

- 2024-05: CNY 16.31 per share

- 2024-06: CNY 14.13 per share

- 2024-07: CNY 13.00 per share

- 2024-08: CNY 11.55 per share

- 2024-09: CNY 14.95 per share

- 2024-10: CNY 16.81 per share

- 2024-11: CNY 19.93 per share

- 2024-12: CNY 15.91 per share

- 2025-01: CNY 14.73 per share

- 2025-02: CNY 17.14 per share

- 2025-03: CNY 18.36 per share

- 2025-04: CNY 16.81 per share

- 2025-05: CNY 15.66 per share

- 2025-06: CNY 18.78 per share

- 2025-07: CNY 17.55 per share

- 2025-08: CNY 22.42 per share

- 2025-09: CNY 30.92 per share

- 2025-10: CNY 29.23 per share

- 2025-11: CNY 26.66 per share

- 2025-12: CNY 27.34 per share

- 2026-01: CNY 27.71 per share

- 2026-02: CNY 28.42 per share

- 2026-03: CNY 31.98 per share

- 2026-04: CNY 36.27 per share

- 2026-05: CNY 30.63 per share

- 2026-06: CNY 28.93 per share

- 2026-07: CNY 23.80 per share

- 2026-08: CNY 23.52 per share

- 2026-09: CNY 21.45 per share

- 2026-10: CNY 20.31 per share

## Annual estimated value (CNY per share)

- FY2017: low CNY 2.29 per share, central CNY 2.51 per share, high CNY 2.80 per share

- FY2018: low CNY 2.96 per share, central CNY 3.26 per share, high CNY 3.67 per share

- FY2019: low CNY 3.88 per share, central CNY 4.33 per share, high CNY 4.93 per share

- FY2020: low CNY 4.96 per share, central CNY 5.21 per share, high CNY 5.54 per share

- FY2021: low CNY 5.41 per share, central CNY 5.80 per share, high CNY 6.31 per share

- FY2022: low CNY 8.58 per share, central CNY 9.24 per share, high CNY 10.12 per share

- FY2023: low CNY 10.62 per share, central CNY 13.07 per share, high CNY 14.49 per share

- FY2024: low CNY 8.86 per share, central CNY 10.99 per share, high CNY 12.22 per share

- FY2025: low CNY 18.97 per share, central CNY 25.09 per share, high CNY 28.66 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

Prior published observations retained from 2026-10-15T06:42:35.727Z where newer inputs omit a numeric field or fiscal period.

## 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.