# Hangzhou First PV Material (603806.SHG)

Canonical: https://gigainvestors.com/s/603806.SHG

Analysis as of: 2026-10-16T07:37:29.666Z. Financial observations: FY2009–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 13.04 per share; close as of 2026-10-15.

Estimated value: low CNY 8.03 per share, central CNY 8.70 per share, high CNY 9.60 per share. Buy at or below the central value CNY 8.70 per share. Valuation as of 2026-10-16T07:37:29.666Z; scenarios are not confidence intervals.

Expected annual return: 6.9% at the stated quote. About 6.9% 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

- 2 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.41×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.25×

- FY2017: 0.15×

- FY2018: 0.18×

- FY2019: 0.17×

- FY2020: 0.21×

- FY2021: 0.19×

- FY2022: 0.09×

- FY2023: 0.09×

- FY2024: 0.08×

- FY2025: 0.06×

### moat: fail

- ROIC median below threshold

- Recent gross margin fell 8.9pp below the typical margin (limit 4pp)

- ROIC, median of available years: 14.3%

- ROIC, second-lowest year: 11.1%

- Typical minus recent gross margin: 8.9 pp

- Typical gross margin (annual median): 19.9%

- Recent gross margin (lower of latest and 3-year median): 11.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.7%

- ROIC including acquisitions, ten-year median: 13.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 18.4%

- FY2017: 12.5%

- FY2018: 14.8%

- FY2019: 19.6%

- FY2020: 19.2%

- FY2021: 23.4%

- FY2022: 13.7%

- FY2023: 13.8%

- FY2024: 11.1%

- FY2025: 6.9%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.98×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 7.5B

- Net income, five-year total: CNY 7.7B

- Return on incremental invested capital: 2.9%

- Working capital / revenue, annual change: -2.4 pp

- Working capital / revenue, change between three-year averages: -16.8 pp

- Working capital / revenue, final three-year average: 37.8%

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

- FY2021: 1.00×

- FY2022: 1.00×

- FY2023: 1.00×

- FY2024: 0.82×

- FY2025: 1.08×

### 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: 14.8% vs 11.1%

- Per-share earnings: 0.74 to 0.50 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- 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: 11.7%

- Ordinary dilution, 5-year annual growth: 23.1%

- Market cap gain: CNY 30B

- Cumulative retained earnings: CNY 7.6B

- Diluted shares, 10-year annual growth: 11.7%

- Diluted shares, 5-year annual growth: 23.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -4.8%

- Per-share value change: CNY -0.24

- Per-share value, starting three-year median: CNY 0.74

- Per-share value, ending three-year median: CNY 0.50

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 0.1%

- Buyback history: 2 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 371M

- Cumulative net income, 10 years: CNY 12B

- ROIC, first three-year median: 14.8%

- ROIC, last three-year median: 11.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.96

- FY2017: CNY 0.66

- FY2018: CNY 1.01

- FY2019: CNY 1.08

- FY2020: CNY 1.67

- FY2021: CNY 2.37

- FY2022: CNY 0.61

- FY2023: CNY 0.71

- FY2024: CNY 0.50

- FY2025: CNY 0.29

### accounting: pass

- Sloan accruals: -3.4%

- Receivables to sales index (DSRI): 0.90×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.90×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.03×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 10.1%

- FY2017: 6.0%

- FY2018: 9.0%

- FY2019: 6.3%

- FY2020: 11.2%

- FY2021: 17.1%

- FY2022: 7.7%

- FY2023: 8.5%

- FY2024: -14.5%

- FY2025: -3.4%

## Holders

## Price story

Down 75% since Oct 2021 · sales -19.1%

Story as of 2026-10-16T10:00:09.140Z; price observation 2026-10-15.

Price needs cash profits to grow 8.1% a year for ten years

### Sales · FY2024–2025

sales -19.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 4.0B 

- FY2017: CNY 4.6B 

- FY2018: CNY 4.8B 

- FY2019: CNY 6.4B 

- FY2020: CNY 8.4B 

- FY2021: CNY 13B 

- FY2022: CNY 19B 

- FY2023: CNY 23B 

- FY2024: CNY 19B 

- FY2025: CNY 15B 

### Gross margin · FY2025

gross margin 11%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 30.2% 

- FY2017: 20.8% 

- FY2018: 19.6% 

- FY2019: 20.1% 

- FY2020: 28.3% 

- FY2021: 24.9% 

- FY2022: 14.8% 

- FY2023: 14.4% 

- FY2024: 14.4% 

- FY2025: 11.0% 

## Owner memo

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

### How it makes money

Operates in semiconductor equipment & materials; annual sales are CNY 15.5 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:29.666Z); FY2025: revenue 15490803120.61; grossProfit 1697303614.25; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 603806.SHG: Hangzhou First Applied Material Co., Ltd., together with its subsidiaries, engages in the research and development, production, and sales of new materials in China and internationally. It operates through Photovoltaic Materials, Electronic Materials, Functional Film Materials, and Coating Materials divisions. The company offers photovoltaic encapsulant film, such as EVA film for PV module, POE encapsulant, co-extrusion film, color encapsulant, light conversion film, and special film for busbar-free (0BB) PV module; backsheet for PV module; and isolation strips, reflective gap encapsulant, moisture barrier sealant, structural adhesive, insulating ink, isolating ink, and wet-film photoresist. It also provides dry film photoresist, photoimageable coverlay, and flexible copper clay laminates; and dry lamination process series aluminum plastic film and hot pressing process series aluminum plastic film. In addition, the company offers membrane support fabric comprising reverse osmosis membrane support fabric, ultrafiltration/microfiltration, membrane support fabric, and PV paper; OLED display panel encapsulation ink; and optoelectronic materials. Further, it is involved in solar power generation system, enterprise management consulting, software and information technology, and equity and industrial investment activities. Additionally, the company provides photovoltaic films, photovoltaic backsheets, photosensitive dry films, solar power generation systems, and other products. It also exports its products. The company was formerly known as Hangzhou First PV Material Co., Ltd. and changed its name to Hangzhou First Applied Material Co., Ltd. in March 2017. Hangzhou First Applied Material Co., Ltd. was founded in 2003 and is headquartered in Hangzhou, China.

### Why customers stay

Margins ranged from 11% to 14.4% during 2023–25; it earns 14.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:29.666Z); FY2023: grossProfit / revenue = 14.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:29.666Z); FY2024: grossProfit / revenue = 14.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:29.666Z); FY2025: grossProfit / revenue = 11%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:29.666Z); 10-year return on capital observations [[2016,0.1843648414385154],[2017,0.1251241673143284],[2018,0.14825802538087118],[2019,0.19620041419740578],[2020,0.19168065653499772],[2021,0.23353724922028843],[2022,0.1366813342103006],[2023,0.138080248048865],[2024,0.11120973119030679],[2025,0.06901795880347346]]; median 0.14316913671486808. 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 2026-10-16T07:37:29.666Z); FY2016: growth capex 101500608.54787189; upkeep 181757576.9621281; owner earnings 722762091.0378718. Growth capex / owner earnings = 0.14043432798491.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:29.666Z); FY2017: growth capex 113401638.83517513; upkeep 91254424.78482488; owner earnings 567242219.2151752. Growth capex / owner earnings = 0.19991748673445947.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:29.666Z); FY2018: growth capex 43268136.42641586; upkeep 152239127.56358415; owner earnings 691334220.4364159. Growth capex / owner earnings = 0.06258642368245876.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:29.666Z); FY2019: growth capex 53726312.44; upkeep 111593290; owner earnings 957062799. Growth capex / owner earnings = 0.056136663650636784.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:29.666Z); FY2020: growth capex 224117026.91000003; upkeep 131677142; owner earnings 1565006798. Growth capex / owner earnings = 0.14320514594339803.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:29.666Z); FY2021: growth capex 345562873.43; upkeep 190468674; owner earnings 2195081912.702. Growth capex / owner earnings = 0.1574259581979039.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:29.666Z); FY2022: growth capex 334148650.80999994; upkeep 242787965; owner earnings 1577212039.6. Growth capex / owner earnings = 0.2118603221509418.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:29.666Z); FY2023: growth capex 422708046; upkeep 320154142; owner earnings 1849139444.506. Growth capex / owner earnings = 0.22859717110892466.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:29.666Z); FY2024: growth capex 0; upkeep 642819830; owner earnings 1068587945.496. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:29.666Z); FY2025: growth capex 0; upkeep 435778932.95; owner earnings 829966414.144. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:29.666Z); Dividend observations: [[2016,281400000],[2017,402000000],[2018,241722581],[2019,235170000],[2020,287430000],[2021,346298567],[2022,332886311],[2023,199731787],[2024,524054991],[2025,694337456.37]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 61.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 603806.SHG SharesStats.PercentInsiders = 61.931000000000004 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 8.1% yearly over ten years; actual decline was 8.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:29.666Z); Ten-year compound average after fade. Initial solved rate 0.10385378623457775. Price 13.04; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.7397294747922472 → FY2025 0.3127162289757736. Closing-price date 2026-10-15.

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

- 2016-11: CNY 8.34 per share

- 2016-12: CNY 7.72 per share

- 2017-01: CNY 7.69 per share

- 2017-02: CNY 7.91 per share

- 2017-03: CNY 7.74 per share

- 2017-04: CNY 6.11 per share

- 2017-05: CNY 5.26 per share

- 2017-06: CNY 5.34 per share

- 2017-07: CNY 5.50 per share

- 2017-08: CNY 5.14 per share

- 2017-09: CNY 5.85 per share

- 2017-10: CNY 6.53 per share

- 2017-11: CNY 5.66 per share

- 2017-12: CNY 5.69 per share

- 2018-01: CNY 5.49 per share

- 2018-02: CNY 5.66 per share

- 2018-03: CNY 6.12 per share

- 2018-04: CNY 5.82 per share

- 2018-05: CNY 6.15 per share

- 2018-06: CNY 4.77 per share

- 2018-07: CNY 4.58 per share

- 2018-08: CNY 4.92 per share

- 2018-09: CNY 4.98 per share

- 2018-10: CNY 5.12 per share

- 2018-11: CNY 5.64 per share

- 2018-12: CNY 5.81 per share

- 2019-01: CNY 6.48 per share

- 2019-02: CNY 7.23 per share

- 2019-03: CNY 7.16 per share

- 2019-04: CNY 7.96 per share

- 2019-05: CNY 7.54 per share

- 2019-06: CNY 7.97 per share

- 2019-07: CNY 8.56 per share

- 2019-08: CNY 9.18 per share

- 2019-09: CNY 9.85 per share

- 2019-10: CNY 8.76 per share

- 2019-11: CNY 8.88 per share

- 2019-12: CNY 10.54 per share

- 2020-01: CNY 10.56 per share

- 2020-02: CNY 10.16 per share

- 2020-03: CNY 8.83 per share

- 2020-04: CNY 10.53 per share

- 2020-05: CNY 11.46 per share

- 2020-06: CNY 15.16 per share

- 2020-07: CNY 21.72 per share

- 2020-08: CNY 21.31 per share

- 2020-09: CNY 22.20 per share

- 2020-10: CNY 23.07 per share

- 2020-11: CNY 21.76 per share

- 2020-12: CNY 25.94 per share

- 2021-01: CNY 30.25 per share

- 2021-02: CNY 27.38 per share

- 2021-03: CNY 26.09 per share

- 2021-04: CNY 27.78 per share

- 2021-05: CNY 29.74 per share

- 2021-06: CNY 38.31 per share

- 2021-07: CNY 48.85 per share

- 2021-08: CNY 55.39 per share

- 2021-09: CNY 46.21 per share

- 2021-10: CNY 52.22 per share

- 2021-11: CNY 44.31 per share

- 2021-12: CNY 47.58 per share

- 2022-01: CNY 41.55 per share

- 2022-02: CNY 43.24 per share

- 2022-03: CNY 41.36 per share

- 2022-04: CNY 33.80 per share

- 2022-05: CNY 40.48 per share

- 2022-06: CNY 33.43 per share

- 2022-07: CNY 35.58 per share

- 2022-08: CNY 33.10 per share

- 2022-09: CNY 27.14 per share

- 2022-10: CNY 32.68 per share

- 2022-11: CNY 30.66 per share

- 2022-12: CNY 33.90 per share

- 2023-01: CNY 38.38 per share

- 2023-02: CNY 35.05 per share

- 2023-03: CNY 29.97 per share

- 2023-04: CNY 25.07 per share

- 2023-05: CNY 21.89 per share

- 2023-06: CNY 26.56 per share

- 2023-07: CNY 24.97 per share

- 2023-08: CNY 22.21 per share

- 2023-09: CNY 20.40 per share

- 2023-10: CNY 18.26 per share

- 2023-11: CNY 16.59 per share

- 2023-12: CNY 17.34 per share

- 2024-01: CNY 16.24 per share

- 2024-02: CNY 19.87 per share

- 2024-03: CNY 20.29 per share

- 2024-04: CNY 19.44 per share

- 2024-05: CNY 18.52 per share

- 2024-06: CNY 14.70 per share

- 2024-07: CNY 15.52 per share

- 2024-08: CNY 15.39 per share

- 2024-09: CNY 17.66 per share

- 2024-10: CNY 18.64 per share

- 2024-11: CNY 17.47 per share

- 2024-12: CNY 14.80 per share

- 2025-01: CNY 14.56 per share

- 2025-02: CNY 14.86 per share

- 2025-03: CNY 14.07 per share

- 2025-04: CNY 12.26 per share

- 2025-05: CNY 12.12 per share

- 2025-06: CNY 12.96 per share

- 2025-07: CNY 14.63 per share

- 2025-08: CNY 15.01 per share

- 2025-09: CNY 15.70 per share

- 2025-10: CNY 15.70 per share

- 2025-11: CNY 14.11 per share

- 2025-12: CNY 13.96 per share

- 2026-01: CNY 17.01 per share

- 2026-02: CNY 18.10 per share

- 2026-03: CNY 17.55 per share

- 2026-04: CNY 18.74 per share

- 2026-05: CNY 17.90 per share

- 2026-06: CNY 16.79 per share

- 2026-07: CNY 14.67 per share

- 2026-08: CNY 15.28 per share

- 2026-09: CNY 13.86 per share

- 2026-10: CNY 13.71 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 9.41 per share, central CNY 10.67 per share, high CNY 12.35 per share

- FY2017: low CNY 10.61 per share, central CNY 12.03 per share, high CNY 13.92 per share

- FY2018: low CNY 13.33 per share, central CNY 15.10 per share, high CNY 17.44 per share

- FY2019: low CNY 17.50 per share, central CNY 23.82 per share, high CNY 27.50 per share

- FY2020: low CNY 20.36 per share, central CNY 28.16 per share, high CNY 32.71 per share

- FY2021: low CNY 30.97 per share, central CNY 43.08 per share, high CNY 50.13 per share

- FY2022: low CNY 17.08 per share, central CNY 23.42 per share, high CNY 27.11 per share

- FY2023: low CNY 16.18 per share, central CNY 18.25 per share, high CNY 20.90 per share

- FY2024: low CNY 9.45 per share, central CNY 10.38 per share, high CNY 11.60 per share

- FY2025: low CNY 7.99 per share, central CNY 8.71 per share, high CNY 9.67 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.