# Zhejiang Huayou Cobalt (603799.SHG)

Canonical: https://gigainvestors.com/s/603799.SHG

Analysis as of: 2026-10-16T07:36:06.944Z. Financial observations: FY2008–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 32.18 per share; close as of 2026-10-15.

Estimated value: low CNY 52.80 per share, central CNY 71.73 per share, high CNY 82.75 per share. Buy at or below the central value CNY 71.73 per share. Valuation as of 2026-10-16T07:36:06.944Z; scenarios are not confidence intervals.

Expected annual return: 20.7% at the stated quote. About 20.7% 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: 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: 0.63×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.02×

- FY2017: 0.23×

- FY2018: 0.12×

- FY2019: 0.01×

- FY2020: 0.07×

- FY2021: 0.14×

- FY2022: 0.10×

- FY2023: 0.07×

- FY2024: 0.09×

- FY2025: 0.12×

### moat: fail

- ROIC median below threshold

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

- ROIC, median of available years: 10.3%

- ROIC, second-lowest year: 0.9%

- Typical minus recent gross margin: -0.1 pp

- Typical gross margin (annual median): 16.6%

- Recent gross margin (lower of latest and 3-year median): 16.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 13.6%

- ROIC including acquisitions, ten-year median: 5.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 0.8%

- FY2017: 18.5%

- FY2018: 12.9%

- FY2019: 0.9%

- FY2020: 7.1%

- FY2021: 15.5%

- FY2022: 12.5%

- FY2023: 5.4%

- FY2024: 8.2%

- FY2025: 12.4%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.52×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 11B

- Net income, five-year total: CNY 21B

- Return on incremental invested capital: 17.0%

- Working capital / revenue, annual change: -4.3 pp

- Working capital / revenue, change between three-year averages: -31.0 pp

- Working capital / revenue, final three-year average: 16.3%

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

- FY2021: 1.00×

- FY2022: 1.00×

- FY2023: -1.54×

- FY2024: 0.57×

- FY2025: 1.00×

### management: fail

- 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: 12.9% vs 8.2%

- Per-share earnings: 0.07 to 2.39 (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: 6.5%

- Ordinary dilution, 5-year annual growth: 10.3%

- Market cap gain: CNY 111B

- Cumulative retained earnings: CNY 22B

- Diluted shares, 10-year annual growth: 6.5%

- Diluted shares, 5-year annual growth: 10.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 55.0%

- Per-share value change: CNY 2.32

- Per-share value, starting three-year median: CNY 0.07

- Per-share value, ending three-year median: CNY 2.39

- Buybacks concentrated in cheaper years (correlation): 0.50

- Average buyback yield: 0.5%

- Buyback history: 3 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 5.1B

- Cumulative net income, 10 years: CNY 26B

- ROIC, first three-year median: 12.9%

- ROIC, last three-year median: 8.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.07

- FY2017: CNY 1.75

- FY2018: CNY 1.40

- FY2019: CNY 0.08

- FY2020: CNY 1.04

- FY2021: CNY 3.20

- FY2022: CNY 2.48

- FY2023: CNY 2.05

- FY2024: CNY 2.39

- FY2025: CNY 3.33

### accounting: pass

- Sloan accruals: 1.3%

- Receivables to sales index (DSRI): 0.83×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.66×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.06×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -8.5%

- FY2017: 22.2%

- FY2018: -1.5%

- FY2019: -10.7%

- FY2020: -2.6%

- FY2021: 6.8%

- FY2022: 0.9%

- FY2023: -0.1%

- FY2024: -6.1%

- FY2025: 1.3%

## Holders

## Price story

Down 68% since Nov 2021 · sales +32.9%

Story as of 2026-10-16T10:00:06.851Z; price observation 2026-10-15.

Price needs cash profits to shrink 5.9% a year for ten years

### Sales · FY2024–2025

sales +32.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 4.9B 

- FY2017: CNY 9.7B 

- FY2018: CNY 14B 

- FY2019: CNY 19B 

- FY2020: CNY 21B 

- FY2021: CNY 35B 

- FY2022: CNY 63B 

- FY2023: CNY 66B 

- FY2024: CNY 61B 

- FY2025: CNY 81B 

### Gross margin · FY2025

gross margin 17.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 16.3% 

- FY2017: 34.0% 

- FY2018: 23.3% 

- FY2019: 9.4% 

- FY2020: 14.8% 

- FY2021: 20.3% 

- FY2022: 16.5% 

- FY2023: 13.6% 

- FY2024: 16.7% 

- FY2025: 17.5% 

## Owner memo

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

### How it makes money

Operates in other industrial metals & mining; annual sales are CNY 81 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:06.944Z); FY2025: revenue 81018674069.68; grossProfit 14153567279.88; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 603799.SHG: Zhejiang Huayou Cobalt Co., Ltd engages in the research, development, manufacture, and sale of lithium battery materials and diamond material products in China and internationally. The company offers lithium battery positive electrode materials, ternary precursors, silver-diamond-lithium materials, and copper products, as well as cobalt, cathode, and bare metals. Its products are used in new energy vehicle power batteries, positive electrode materials for consumer electronics, and alloy materials. The company was founded in 2002 and is headquartered in Tongxiang, China.

### Why customers stay

Margins ranged from 13.6% to 17.5% during 2023–25; it earns 10.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:06.944Z); FY2023: grossProfit / revenue = 13.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:06.944Z); FY2024: grossProfit / revenue = 16.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:06.944Z); FY2025: grossProfit / revenue = 17.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:06.944Z); 10-year return on capital observations [[2016,0.007904039232143183],[2017,0.18488026199976215],[2018,0.12873270661856429],[2019,0.008510016278977277],[2020,0.07122145244449297],[2021,0.15523503119236717],[2022,0.12541158443570335],[2023,0.05399490587393125],[2024,0.08200544354084843],[2025,0.12381873413721874]]; median 0.10291208883903358. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 94.3% of cash earnings on expansion; earns 17% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:06.944Z); FY2016: growth capex 96739362.75999999; upkeep 226753729; owner earnings 69237478. Growth capex / owner earnings = 1.3972109550264091.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:06.944Z); FY2017: growth capex 332206373.75; upkeep 307374989; owner earnings 1895512964. Growth capex / owner earnings = 0.175259351985102.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:06.944Z); FY2018: growth capex 1082012124.81; upkeep 412468573; owner earnings 1528098517. Growth capex / owner earnings = 0.7080774654072909.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:06.944Z); FY2019: growth capex 2044726200.23; upkeep 596729255; owner earnings 119534813. Growth capex / owner earnings = 17.105696231189153.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:06.944Z); FY2021: growth capex 5776067712.34; upkeep 1071162936; owner earnings 3890945878.972. Growth capex / owner earnings = 1.4844893483499326.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:06.944Z); FY2022: growth capex 14344594027.52; upkeep 1870444000; owner earnings 3902060895.848948. Growth capex / owner earnings = 3.6761584225351083.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:06.944Z); FY2024: growth capex 0; upkeep 6721575000; owner earnings 2373027250.89865. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:06.944Z); FY2025: growth capex 5756427319.47; upkeep 5001197762.96; owner earnings 6105677391.059642. Growth capex / owner earnings = 0.9427991278902096.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:06.944Z); Incremental return on capital 0.16964159658155953, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:06.944Z); Dividend observations: [[2016,265753640.67],[2017,187843296.49],[2018,579802413.1],[2019,82974728],[2020,375672142.66],[2021,242580876],[2022,366286614],[2023,2240565861],[2024,3847768000],[2025,2666779448.41]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 21.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 603799.SHG SharesStats.PercentInsiders = 21.855 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 5.9% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:06.944Z); Ten-year compound average after fade. Initial solved rate -0.09555079251657048. Price 32.18; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -0.9403433843054085 → FY2025 3.327437875326944. Closing-price date 2026-10-15.

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

- 2016-11: CNY 14.22 per share

- 2016-12: CNY 14.86 per share

- 2017-01: CNY 16.28 per share

- 2017-02: CNY 24.75 per share

- 2017-03: CNY 21.89 per share

- 2017-04: CNY 20.00 per share

- 2017-05: CNY 18.01 per share

- 2017-06: CNY 25.69 per share

- 2017-07: CNY 27.07 per share

- 2017-08: CNY 34.68 per share

- 2017-09: CNY 38.66 per share

- 2017-10: CNY 40.14 per share

- 2017-11: CNY 35.82 per share

- 2017-12: CNY 33.91 per share

- 2018-01: CNY 42.27 per share

- 2018-02: CNY 51.15 per share

- 2018-03: CNY 50.10 per share

- 2018-04: CNY 46.07 per share

- 2018-05: CNY 44.18 per share

- 2018-06: CNY 41.20 per share

- 2018-07: CNY 40.80 per share

- 2018-08: CNY 29.53 per share

- 2018-09: CNY 31.53 per share

- 2018-10: CNY 19.97 per share

- 2018-11: CNY 20.12 per share

- 2018-12: CNY 17.82 per share

- 2019-01: CNY 15.50 per share

- 2019-02: CNY 22.62 per share

- 2019-03: CNY 22.18 per share

- 2019-04: CNY 17.21 per share

- 2019-05: CNY 16.98 per share

- 2019-06: CNY 16.39 per share

- 2019-07: CNY 17.98 per share

- 2019-08: CNY 19.29 per share

- 2019-09: CNY 20.70 per share

- 2019-10: CNY 18.88 per share

- 2019-11: CNY 23.45 per share

- 2019-12: CNY 30.30 per share

- 2020-01: CNY 36.31 per share

- 2020-02: CNY 29.07 per share

- 2020-03: CNY 22.62 per share

- 2020-04: CNY 26.49 per share

- 2020-05: CNY 24.98 per share

- 2020-06: CNY 29.89 per share

- 2020-07: CNY 32.89 per share

- 2020-08: CNY 30.89 per share

- 2020-09: CNY 26.68 per share

- 2020-10: CNY 30.60 per share

- 2020-11: CNY 40.25 per share

- 2020-12: CNY 61.00 per share

- 2021-01: CNY 76.17 per share

- 2021-02: CNY 68.72 per share

- 2021-03: CNY 52.88 per share

- 2021-04: CNY 62.90 per share

- 2021-05: CNY 79.42 per share

- 2021-06: CNY 87.85 per share

- 2021-07: CNY 100.77 per share

- 2021-08: CNY 107.85 per share

- 2021-09: CNY 79.54 per share

- 2021-10: CNY 85.42 per share

- 2021-11: CNY 99.54 per share

- 2021-12: CNY 84.85 per share

- 2022-01: CNY 75.67 per share

- 2022-02: CNY 94.72 per share

- 2022-03: CNY 75.23 per share

- 2022-04: CNY 63.32 per share

- 2022-05: CNY 72.68 per share

- 2022-06: CNY 95.62 per share

- 2022-07: CNY 84.37 per share

- 2022-08: CNY 74.74 per share

- 2022-09: CNY 64.34 per share

- 2022-10: CNY 54.48 per share

- 2022-11: CNY 62.51 per share

- 2022-12: CNY 55.63 per share

- 2023-01: CNY 65.73 per share

- 2023-02: CNY 59.10 per share

- 2023-03: CNY 55.00 per share

- 2023-04: CNY 52.00 per share

- 2023-05: CNY 46.25 per share

- 2023-06: CNY 45.91 per share

- 2023-07: CNY 50.33 per share

- 2023-08: CNY 39.90 per share

- 2023-09: CNY 37.51 per share

- 2023-10: CNY 36.79 per share

- 2023-11: CNY 32.10 per share

- 2023-12: CNY 32.93 per share

- 2024-01: CNY 24.92 per share

- 2024-02: CNY 27.70 per share

- 2024-03: CNY 27.12 per share

- 2024-04: CNY 28.49 per share

- 2024-05: CNY 28.80 per share

- 2024-06: CNY 22.13 per share

- 2024-07: CNY 23.48 per share

- 2024-08: CNY 23.13 per share

- 2024-09: CNY 29.51 per share

- 2024-10: CNY 31.07 per share

- 2024-11: CNY 32.34 per share

- 2024-12: CNY 29.26 per share

- 2025-01: CNY 29.22 per share

- 2025-02: CNY 33.00 per share

- 2025-03: CNY 34.07 per share

- 2025-04: CNY 33.88 per share

- 2025-05: CNY 33.40 per share

- 2025-06: CNY 37.02 per share

- 2025-07: CNY 44.18 per share

- 2025-08: CNY 48.05 per share

- 2025-09: CNY 65.90 per share

- 2025-10: CNY 64.81 per share

- 2025-11: CNY 61.83 per share

- 2025-12: CNY 68.26 per share

- 2026-01: CNY 72.00 per share

- 2026-02: CNY 78.62 per share

- 2026-03: CNY 58.73 per share

- 2026-04: CNY 66.59 per share

- 2026-05: CNY 54.80 per share

- 2026-06: CNY 48.26 per share

- 2026-07: CNY 39.91 per share

- 2026-08: CNY 39.57 per share

- 2026-09: CNY 35.00 per share

- 2026-10: CNY 33.91 per share

## Annual estimated value (CNY per share)

- FY2018: low CNY 4.41 per share, central CNY 5.50 per share, high CNY 6.14 per share

- FY2019: low CNY 3.95 per share, central CNY 4.26 per share, high CNY 4.65 per share

- FY2020: low CNY 5.36 per share, central CNY 6.92 per share, high CNY 7.82 per share

- FY2021: low CNY 49.38 per share, central CNY 67.23 per share, high CNY 77.63 per share

- FY2022: low CNY 39.94 per share, central CNY 54.37 per share, high CNY 62.77 per share

- FY2023: low CNY 10.01 per share, central CNY 11.51 per share, high CNY 12.38 per share

- FY2024: low CNY 27.18 per share, central CNY 35.13 per share, high CNY 39.77 per share

- FY2025: low CNY 44.28 per share, central CNY 60.20 per share, high CNY 69.48 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 2026-10-15T06:41:45.460Z 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.