# GigaDevice Semiconductor(Beiji (603986.SHG)

Canonical: https://gigainvestors.com/s/603986.SHG

Analysis as of: 2026-10-16T07:34:19.147Z. Financial observations: FY2011–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 278.22 per share; close as of 2026-10-15.

Estimated value: low CNY 71.98 per share, central CNY 92.42 per share, high CNY 104.32 per share. Buy at or below the central value CNY 92.42 per share. Valuation as of 2026-10-16T07:34:19.147Z; scenarios are not confidence intervals.

Expected annual return: 5.0% at the stated quote. About 5.0% 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: 0.39×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.11×

- FY2017: 0.22×

- FY2018: 0.19×

- FY2019: 0.21×

- FY2020: 0.21×

- FY2021: 0.27×

- FY2022: 0.27×

- FY2023: 0.02×

- FY2024: 0.15×

- FY2025: 0.17×

### moat: pass

- ROIC, median of available years: 30.8%

- ROIC, second-lowest year: 14.4%

- Typical minus recent gross margin: 0.9 pp

- Typical gross margin (annual median): 36.5%

- Recent gross margin (lower of latest and 3-year median): 35.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 7.7%

- ROIC including acquisitions, ten-year median: 15.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 37.8%

- FY2017: 27.7%

- FY2018: 30.8%

- FY2019: 30.8%

- FY2020: 45.5%

- FY2021: 59.7%

- FY2022: 34.8%

- FY2023: 2.1%

- FY2024: 14.4%

- FY2025: 16.3%

### economics: pass

- Owner earnings / net income, 5-yr: 0.91×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 6.6B

- Net income, five-year total: CNY 7.3B

- Return on incremental invested capital: 30.3%

- Working capital / revenue, annual change: 0.8 pp

- Working capital / revenue, change between three-year averages: 5.0 pp

- Working capital / revenue, final three-year average: 27.6%

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

- FY2021: 0.99×

- FY2022: 0.86×

- FY2023: 0.96×

- FY2024: 0.99×

- FY2025: 0.79×

### 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: 30.8% vs 14.4%

- Per-share earnings: 0.39 to 1.66 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 4.9%

- Ordinary dilution, 5-year annual growth: 0.3%

- Market cap gain: CNY 128B

- Cumulative retained earnings: CNY 8.0B

- Diluted shares, 10-year annual growth: 4.9%

- Diluted shares, 5-year annual growth: 0.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 19.9%

- Per-share value change: CNY 1.27

- Per-share value, starting three-year median: CNY 0.39

- Per-share value, ending three-year median: CNY 1.66

- Buybacks concentrated in cheaper years (correlation): 0.21

- Average buyback yield: 0.1%

- Buyback history: 8 years

- Debt-funded buybacks: No

- Acquisition spending: CNY 2.0B

- Cumulative net income, 10 years: CNY 9.8B

- ROIC, first three-year median: 30.8%

- ROIC, last three-year median: 14.4%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.39

- FY2017: CNY 0.72

- FY2018: CNY 0.73

- FY2019: CNY 1.03

- FY2020: CNY 1.34

- FY2021: CNY 3.53

- FY2022: CNY 3.09

- FY2023: CNY 0.24

- FY2024: CNY 1.66

- FY2025: CNY 2.47

### accounting: pass

- Sloan accruals: -2.2%

- Receivables to sales index (DSRI): 0.35×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.29×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.07×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 5.6%

- FY2017: 7.8%

- FY2018: -7.5%

- FY2019: -5.8%

- FY2020: -1.5%

- FY2021: 0.5%

- FY2022: 6.6%

- FY2023: -7.0%

- FY2024: -4.8%

- FY2025: -2.2%

## Holders

## Price story

Down 66% since Jun 2026 · sales +25.1%

Story as of 2026-10-16T10:00:00.079Z; price observation 2026-10-15.

Price needs cash profits to grow 23.5% a year for ten years

### Sales · FY2024–2025

sales +25.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 1.5B 

- FY2017: CNY 2.0B 

- FY2018: CNY 2.2B 

- FY2019: CNY 3.2B 

- FY2020: CNY 4.5B 

- FY2021: CNY 8.5B 

- FY2022: CNY 8.1B 

- FY2023: CNY 5.8B 

- FY2024: CNY 7.4B 

- FY2025: CNY 9.2B 

### Gross margin · FY2025

gross margin 40.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 25.9% 

- FY2017: 36.5% 

- FY2018: 35.3% 

- FY2019: 39.2% 

- FY2020: 36.6% 

- FY2021: 46.0% 

- FY2022: 45.5% 

- FY2023: 30.3% 

- FY2024: 35.7% 

- FY2025: 40.2% 

## Owner memo

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

### How it makes money

Operates in semiconductors; annual sales are CNY 9.2 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.147Z); FY2025: revenue 9203463124.58; grossProfit 3701283032.66; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 603986.SHG: GigaDevice Semiconductor Inc. engages in the research, development, technical support, and sale of memory, microcontrollers, sensors, and analog chips. The company offers SPI NOR, SPI NAND, parallel NAND, wafer level chip scale packaging (WLCSP), and known good die (KGD) flash products; 32-bit microcontrollers (MCUs), such as high-performance, mainstream, entry-level, low-power consumptions, automotive, and specific MCUs, as well as wireless MCUs and modules; and sensors comprising touch controllers, fingerprint recognition, and barometric pressure sensors. It also provides analogs consisting of general power supply products, including low drop linear regulators and DC-DC converters; application specific standard products (ASSP), such as ASSP for DDR and power management IC for TWS earbuds; motor drivers comprising 3-Phase MOSFET pre-drivers, brushed DC motor drivers, multi-channel full-bridge drivers, and brushless DC motor driver SOCs; charging management products, such as battery charger and protection ICs; signal chain products which include ADC, operation amplifiers, comparators, high precision voltage references, current monitors, and temperature/temperature humidity sensors; and BMS AFE products. Its products are used in automotive, industrial, PC and peripherals, consumer electronics, Internet of Things, network communication, and mobile applications. The company sells its products through operations and distributor networks in China, Singapore, the United States, South Korea, Japan, the United Kingdom, Germany, Turkey, Italy, and Mexico. The company was formerly known as GigaDevice Semiconductor (Beijing) Inc. and changed its name to GigaDevice Semiconductor Inc. in August 2022. GigaDevice Semiconductor Inc. was founded in 2005 and is headquartered in Beijing, China.

### Why customers stay

Margins ranged from 30.3% to 40.2% during 2023–25; it earns 30.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.147Z); FY2023: grossProfit / revenue = 30.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.147Z); FY2024: grossProfit / revenue = 35.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.147Z); FY2025: grossProfit / revenue = 40.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.147Z); 10-year return on capital observations [[2016,0.37804901291416054],[2017,0.2772009669410799],[2018,0.30821016151055725],[2019,0.30780222500499355],[2020,0.45524446940661556],[2021,0.5968977033710264],[2022,0.34791296678721967],[2023,0.020678543481903285],[2024,0.14442711898067995],[2025,0.163109714797589]]; median 0.3080061932577754. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 21.8% of cash earnings on expansion; earns 30.3% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.147Z); FY2016: growth capex 13541718.75616581; upkeep 65018162.79383419; owner earnings 136052633.20616582. Growth capex / owner earnings = 0.09953294131136381.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.147Z); FY2017: growth capex 28957303.61434257; upkeep 204229347.52565742; owner earnings 224206704.47434258. Growth capex / owner earnings = 0.1291544946536438.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.147Z); FY2018: growth capex 18174706.12304777; upkeep 279260318.9069522; owner earnings 175626670.0930478. Growth capex / owner earnings = 0.10348488708132272.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.147Z); FY2019: growth capex 106854675.77172655; upkeep 170101899.46827346; owner earnings 529422314.53172654. Growth capex / owner earnings = 0.20183258778247645.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.147Z); FY2020: growth capex 175088864.5199993; upkeep 186205914.1200007; owner earnings 861869413.8799993. Growth capex / owner earnings = 0.2031501080097239.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.147Z); FY2021: growth capex 407856558.82000005; upkeep 213987201; owner earnings 2315216692.602. Growth capex / owner earnings = 0.1761634494616669.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.147Z); FY2022: growth capex 0; upkeep 550843222.25; owner earnings 1768113330.084. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.147Z); FY2023: growth capex 0; upkeep 348363732.56; owner earnings 155268649.146. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.147Z); FY2024: growth capex 124833022; upkeep 374184201; owner earnings 1092938226.426. Growth capex / owner earnings = 0.11421782035039114.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.147Z); FY2025: growth capex 284265032.64596355; upkeep 764298606.6440364; owner earnings 1306194316.1499636. Growth capex / owner earnings = 0.21762844098406503.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.147Z); Incremental return on capital 0.30306790016459806, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.147Z); Dividend observations: [[2016,53000000],[2017,53000000],[2018,91251474.2],[2019,81194929],[2020,121992829],[2021,265662029],[2022,707515128],[2023,421113126.38],[2024,15218394],[2025,242898392.37]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 12.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 603986.SHG SharesStats.PercentInsiders = 12.253 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 23.5% yearly over ten years; actual growth was 18.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:19.147Z); Ten-year compound average after fade. Initial solved rate 0.33031732382867673. Price 278.22; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.36220782458940287 → FY2025 1.95767938007048. Closing-price date 2026-10-15.

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

- 2016-11: CNY 32.43 per share

- 2016-12: CNY 32.43 per share

- 2017-01: CNY 32.43 per share

- 2017-02: CNY 32.43 per share

- 2017-03: CNY 38.28 per share

- 2017-04: CNY 36.09 per share

- 2017-05: CNY 31.99 per share

- 2017-06: CNY 28.36 per share

- 2017-07: CNY 25.91 per share

- 2017-08: CNY 34.84 per share

- 2017-09: CNY 47.47 per share

- 2017-10: CNY 59.45 per share

- 2017-11: CNY 59.45 per share

- 2017-12: CNY 59.45 per share

- 2018-01: CNY 59.45 per share

- 2018-02: CNY 59.45 per share

- 2018-03: CNY 71.72 per share

- 2018-04: CNY 63.63 per share

- 2018-05: CNY 55.33 per share

- 2018-06: CNY 55.37 per share

- 2018-07: CNY 58.64 per share

- 2018-08: CNY 55.78 per share

- 2018-09: CNY 45.27 per share

- 2018-10: CNY 35.17 per share

- 2018-11: CNY 38.44 per share

- 2018-12: CNY 31.80 per share

- 2019-01: CNY 34.54 per share

- 2019-02: CNY 46.94 per share

- 2019-03: CNY 51.83 per share

- 2019-04: CNY 42.34 per share

- 2019-05: CNY 39.29 per share

- 2019-06: CNY 44.23 per share

- 2019-07: CNY 49.90 per share

- 2019-08: CNY 67.12 per share

- 2019-09: CNY 74.17 per share

- 2019-10: CNY 78.54 per share

- 2019-11: CNY 84.39 per share

- 2019-12: CNY 104.54 per share

- 2020-01: CNY 144.39 per share

- 2020-02: CNY 185.22 per share

- 2020-03: CNY 123.47 per share

- 2020-04: CNY 141.74 per share

- 2020-05: CNY 138.14 per share

- 2020-06: CNY 168.51 per share

- 2020-07: CNY 165.36 per share

- 2020-08: CNY 142.52 per share

- 2020-09: CNY 123.65 per share

- 2020-10: CNY 139.07 per share

- 2020-11: CNY 147.56 per share

- 2020-12: CNY 141.07 per share

- 2021-01: CNY 130.00 per share

- 2021-02: CNY 137.50 per share

- 2021-03: CNY 122.06 per share

- 2021-04: CNY 138.02 per share

- 2021-05: CNY 135.27 per share

- 2021-06: CNY 187.90 per share

- 2021-07: CNY 230.05 per share

- 2021-08: CNY 153.05 per share

- 2021-09: CNY 144.99 per share

- 2021-10: CNY 169.51 per share

- 2021-11: CNY 150.60 per share

- 2021-12: CNY 175.85 per share

- 2022-01: CNY 139.10 per share

- 2022-02: CNY 153.31 per share

- 2022-03: CNY 141.03 per share

- 2022-04: CNY 124.81 per share

- 2022-05: CNY 143.64 per share

- 2022-06: CNY 142.21 per share

- 2022-07: CNY 118.27 per share

- 2022-08: CNY 115.97 per share

- 2022-09: CNY 93.75 per share

- 2022-10: CNY 82.27 per share

- 2022-11: CNY 100.79 per share

- 2022-12: CNY 102.47 per share

- 2023-01: CNY 114.55 per share

- 2023-02: CNY 104.89 per share

- 2023-03: CNY 122.00 per share

- 2023-04: CNY 108.47 per share

- 2023-05: CNY 110.80 per share

- 2023-06: CNY 106.25 per share

- 2023-07: CNY 114.78 per share

- 2023-08: CNY 93.98 per share

- 2023-09: CNY 98.60 per share

- 2023-10: CNY 107.00 per share

- 2023-11: CNY 94.10 per share

- 2023-12: CNY 92.39 per share

- 2024-01: CNY 62.50 per share

- 2024-02: CNY 73.27 per share

- 2024-03: CNY 71.87 per share

- 2024-04: CNY 78.75 per share

- 2024-05: CNY 83.11 per share

- 2024-06: CNY 95.62 per share

- 2024-07: CNY 85.98 per share

- 2024-08: CNY 72.38 per share

- 2024-09: CNY 88.37 per share

- 2024-10: CNY 90.17 per share

- 2024-11: CNY 85.78 per share

- 2024-12: CNY 106.80 per share

- 2025-01: CNY 127.40 per share

- 2025-02: CNY 131.83 per share

- 2025-03: CNY 116.88 per share

- 2025-04: CNY 128.69 per share

- 2025-05: CNY 112.30 per share

- 2025-06: CNY 126.53 per share

- 2025-07: CNY 121.13 per share

- 2025-08: CNY 158.98 per share

- 2025-09: CNY 213.30 per share

- 2025-10: CNY 220.00 per share

- 2025-11: CNY 203.00 per share

- 2025-12: CNY 214.25 per share

- 2026-01: CNY 314.88 per share

- 2026-02: CNY 300.00 per share

- 2026-03: CNY 238.10 per share

- 2026-04: CNY 312.99 per share

- 2026-05: CNY 467.01 per share

- 2026-06: CNY 815.00 per share

- 2026-07: CNY 378.60 per share

- 2026-08: CNY 406.00 per share

- 2026-09: CNY 353.90 per share

- 2026-10: CNY 301.20 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 5.12 per share, central CNY 5.57 per share, high CNY 6.17 per share

- FY2017: low CNY 5.18 per share, central CNY 5.76 per share, high CNY 6.53 per share

- FY2018: low CNY 6.22 per share, central CNY 6.86 per share, high CNY 7.71 per share

- FY2019: low CNY 9.80 per share, central CNY 10.71 per share, high CNY 11.91 per share

- FY2020: low CNY 19.80 per share, central CNY 20.94 per share, high CNY 22.45 per share

- FY2021: low CNY 42.22 per share, central CNY 54.59 per share, high CNY 61.79 per share

- FY2022: low CNY 44.78 per share, central CNY 58.45 per share, high CNY 66.40 per share

- FY2023: low CNY 31.75 per share, central CNY 34.83 per share, high CNY 38.33 per share

- FY2024: low CNY 36.90 per share, central CNY 40.10 per share, high CNY 44.36 per share

- FY2025: low CNY 41.51 per share, central CNY 53.45 per share, high CNY 60.40 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 2026-10-15T06:40:02.865Z 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.