# Ningbo Deye Technology (605117.SHG)

Canonical: https://gigainvestors.com/s/605117.SHG

Analysis as of: 2026-10-16T07:35:20.356Z. Financial observations: FY2016–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 71.48 per share; close as of 2026-10-15.

Estimated value: low CNY 36.08 per share, central CNY 39.97 per share, high CNY 45.15 per share. Buy at or below the central value CNY 39.97 per share. Valuation as of 2026-10-16T07:35:20.356Z; scenarios are not confidence intervals.

Expected annual return: 6.5% at the stated quote. About 6.5% 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

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

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.48×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.14×

- FY2017: 0.08×

- FY2018: 0.07×

- FY2019: 0.11×

- FY2020: 0.14×

- FY2021: 0.16×

- FY2022: 0.29×

- FY2023: 0.28×

- FY2024: 0.30×

- FY2025: 0.28×

### moat: pass

- ROIC, median of available years: 59.0%

- ROIC, second-lowest year: 47.2%

- Typical minus recent gross margin: -14.5 pp

- Typical gross margin (annual median): 23.6%

- Recent gross margin (lower of latest and 3-year median): 38.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.8%

- ROIC including acquisitions, ten-year median: 40.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 49.8%

- FY2017: 46.2%

- FY2018: 47.2%

- FY2019: >100%

- FY2020: >100%

- FY2021: >100%

- FY2022: 62.2%

- FY2023: >100%

- FY2024: 50.6%

- FY2025: 55.8%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.79×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 7.9B

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

- Return on incremental invested capital: 147.3%

- Working capital / revenue, annual change: -0.9 pp

- Working capital / revenue, change between three-year averages: -3.0 pp

- Working capital / revenue, final three-year average: 3.8%

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

- FY2021: 0.28×

- FY2022: 0.68×

- FY2023: 0.79×

- FY2024: 1.00×

- FY2025: 0.73×

### management: pass

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 47.2% vs 55.8%

- Per-share earnings: 0.11 to 2.40 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 8.5%

- Diluted shares, 5-year annual growth: 8.5%

- Per-share value growth: 55.3%

- Per-share value change: CNY 2.29

- Per-share value, starting three-year median: CNY 0.11

- Per-share value, ending three-year median: CNY 2.40

- Average buyback yield: 0.6%

- Buyback history: 1 years

- Debt-funded buybacks: No

- Cumulative net income, 10 years: CNY 11B

- ROIC, first three-year median: 47.2%

- ROIC, last three-year median: 55.8%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.11

- FY2017: CNY 0.11

- FY2018: CNY 0.12

- FY2019: CNY 0.31

- FY2020: CNY 0.45

- FY2021: CNY 0.69

- FY2022: CNY 1.28

- FY2023: CNY 1.52

- FY2024: CNY 2.40

- FY2025: CNY 2.51

### accounting: pass

- Sloan accruals: -4.1%

- Receivables to sales index (DSRI): 0.78×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.26×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.03×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -8.4%

- FY2017: 2.7%

- FY2018: -7.4%

- FY2019: -10.0%

- FY2020: -4.3%

- FY2021: -5.6%

- FY2022: -8.1%

- FY2023: -2.7%

- FY2024: -2.7%

- FY2025: -4.1%

## Holders

## Price story

Down 38% since May 2026 · sales +9.1%

Story as of 2026-10-16T10:00:04.559Z; price observation 2026-10-15.

Price needs cash profits to grow 9.5% a year for ten years

### Sales · FY2024–2025

sales +9.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 930M 

- FY2017: CNY 1.5B 

- FY2018: CNY 1.7B 

- FY2019: CNY 2.6B 

- FY2020: CNY 3.0B 

- FY2021: CNY 4.2B 

- FY2022: CNY 6.0B 

- FY2023: CNY 7.5B 

- FY2024: CNY 11B 

- FY2025: CNY 12B 

### Gross margin · FY2025

gross margin 38.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 24.4% 

- FY2017: 21.3% 

- FY2018: 19.2% 

- FY2019: 21.0% 

- FY2020: 22.6% 

- FY2021: 22.8% 

- FY2022: 37.9% 

- FY2023: 39.7% 

- FY2024: 38.8% 

- FY2025: 38.1% 

## Owner memo

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

### How it makes money

Operates in electrical equipment & parts; annual sales are CNY 12.2 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:20.356Z); FY2025: revenue 12223743462.54; grossProfit 4660583718.62; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 605117.SHG: Ningbo Deye Technology Group Co., Ltd., together with its subsidiaries, researches, designs, develops, produces, sells and services solar inverter systems, frequency conversion control systems, environmental electrical appliances, and heat exchangers in China. The company offers energy storage, string, and grid-tied micro inverters, as well as energy storage systems; and household, industrial, fresh air, pipe ceiling, and rotary dehumidifiers, as well as integrated dehumidification and humidification machines, constant temperature and humidity machines, and various customized non-standard air treatment equipment. It also provides solar air conditioners, including wall-mount PV generator, PV duct-type air conditioner, and PV water heater; solar water pumps; frequency conversion air conditioners; PCBA supporting solutions; and evaporators and condensers. In addition, the company is involved in scientific research and technical services; technology promotion and application services; investment activities; and wholesale and retail trade. It exports its products in Germany, India, South Africa, Ukraine, the United Arab Emirates, and internationally. The company was founded in 2000 and is based in Ningbo, China.

### Why customers stay

Margins ranged from 38.1% to 39.7% during 2023–25; it earns 59% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:20.356Z); FY2023: grossProfit / revenue = 39.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:20.356Z); FY2024: grossProfit / revenue = 38.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:20.356Z); FY2025: grossProfit / revenue = 38.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:20.356Z); 10-year return on capital observations [[2016,0.49777934868213336],[2017,0.46242383366240924],[2018,0.47202411354005713],[2019,1.6394193456541082],[2020,1.887672892265859],[2021,1.2035198963902984],[2022,0.6215619497639826],[2023,1.2038120199086009],[2024,0.5056395707593263],[2025,0.5578302853812033]]; median 0.589696117572593. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 10.3% of cash earnings on expansion; earns over 100% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:20.356Z); FY2016: growth capex 0; upkeep 29078800; owner earnings 80834200. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:20.356Z); FY2017: growth capex 25454745.22; upkeep 20257000; owner earnings 93022800. Growth capex / owner earnings = 0.27363985195027457.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:20.356Z); FY2018: growth capex 29407790.18051966; upkeep 27011039.75948034; owner earnings 99000260.24051966. Growth capex / owner earnings = 0.2970476048151174.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:20.356Z); FY2019: growth capex 29156456.509999998; upkeep 27926089; owner earnings 259713620. Growth capex / owner earnings = 0.11226387168297142.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:20.356Z); FY2020: growth capex 53692945.09; upkeep 29990890; owner earnings 382445665. Growth capex / owner earnings = 0.1403936558935764.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:20.356Z); FY2021: growth capex 151533172.72467518; upkeep 450413193.1653248; owner earnings 162341873.15067518. Growth capex / owner earnings = 0.9334201323649379.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:20.356Z); FY2022: growth capex 274767086.37777; upkeep 534376512.47223; owner earnings 1038755697.90377. Growth capex / owner earnings = 0.2645155997047771.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:20.356Z); FY2023: growth capex 273145650.5443859; upkeep 475656672.4556141; owner earnings 1419930646.6303859. Growth capex / owner earnings = 0.19236548714022292.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:20.356Z); FY2024: growth capex 312066159; upkeep 156838039; owner earnings 2959034108.602. Growth capex / owner earnings = 0.10546217027131062.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:20.356Z); FY2025: growth capex 239965232.24290228; upkeep 1047003182.4170978; owner earnings 2323829432.6509023. Growth capex / owner earnings = 0.10326284230300095.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:20.356Z); Incremental return on capital 1.4732503367525591, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:20.356Z); Dividend observations: [[2016,5144400],[2017,18779318.49],[2018,4079398.19],[2019,38400000],[2020,60258252.91],[2021,133071474.63],[2022,204800400],[2023,538215832],[2024,1677501288],[2025,2739898726.56]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 60.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 605117.SHG SharesStats.PercentInsiders = 60.302 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 9.5% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:20.356Z); Ten-year compound average after fade. Initial solved rate 0.12343424025503225. Price 71.48; 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)

- 2021-05: CNY 11.46 per share

- 2021-06: CNY 18.45 per share

- 2021-07: CNY 29.32 per share

- 2021-08: CNY 31.73 per share

- 2021-09: CNY 32.51 per share

- 2021-10: CNY 47.50 per share

- 2021-11: CNY 40.82 per share

- 2021-12: CNY 39.59 per share

- 2022-01: CNY 37.70 per share

- 2022-02: CNY 41.50 per share

- 2022-03: CNY 30.78 per share

- 2022-04: CNY 31.96 per share

- 2022-05: CNY 41.30 per share

- 2022-06: CNY 56.67 per share

- 2022-07: CNY 67.64 per share

- 2022-08: CNY 74.50 per share

- 2022-09: CNY 85.08 per share

- 2022-10: CNY 66.24 per share

- 2022-11: CNY 73.49 per share

- 2022-12: CNY 67.06 per share

- 2023-01: CNY 70.60 per share

- 2023-02: CNY 66.99 per share

- 2023-03: CNY 52.23 per share

- 2023-04: CNY 50.88 per share

- 2023-05: CNY 49.36 per share

- 2023-06: CNY 54.50 per share

- 2023-07: CNY 45.63 per share

- 2023-08: CNY 33.60 per share

- 2023-09: CNY 28.22 per share

- 2023-10: CNY 25.19 per share

- 2023-11: CNY 22.98 per share

- 2023-12: CNY 30.58 per share

- 2024-01: CNY 24.62 per share

- 2024-02: CNY 30.50 per share

- 2024-03: CNY 32.81 per share

- 2024-04: CNY 34.07 per share

- 2024-05: CNY 34.45 per share

- 2024-06: CNY 37.93 per share

- 2024-07: CNY 49.49 per share

- 2024-08: CNY 46.27 per share

- 2024-09: CNY 51.88 per share

- 2024-10: CNY 48.27 per share

- 2024-11: CNY 44.01 per share

- 2024-12: CNY 43.27 per share

- 2025-01: CNY 43.30 per share

- 2025-02: CNY 47.22 per share

- 2025-03: CNY 46.66 per share

- 2025-04: CNY 43.98 per share

- 2025-05: CNY 42.03 per share

- 2025-06: CNY 37.61 per share

- 2025-07: CNY 36.50 per share

- 2025-08: CNY 46.18 per share

- 2025-09: CNY 57.86 per share

- 2025-10: CNY 53.20 per share

- 2025-11: CNY 57.86 per share

- 2025-12: CNY 61.57 per share

- 2026-01: CNY 59.98 per share

- 2026-02: CNY 74.64 per share

- 2026-03: CNY 93.90 per share

- 2026-04: CNY 107.59 per share

- 2026-05: CNY 115.64 per share

- 2026-06: CNY 106.18 per share

- 2026-07: CNY 81.81 per share

- 2026-08: CNY 88.04 per share

- 2026-09: CNY 78.16 per share

- 2026-10: CNY 75.18 per share

## Annual estimated value (CNY per share)

- FY2020: low CNY 4.14 per share, central CNY 4.61 per share, high CNY 5.23 per share

- FY2021: low CNY 5.82 per share, central CNY 6.28 per share, high CNY 6.89 per share

- FY2022: low CNY 8.35 per share, central CNY 9.12 per share, high CNY 10.14 per share

- FY2023: low CNY 14.14 per share, central CNY 15.36 per share, high CNY 16.97 per share

- FY2024: low CNY 22.51 per share, central CNY 24.90 per share, high CNY 28.08 per share

- FY2025: low CNY 26.46 per share, central CNY 29.23 per share, high CNY 32.91 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 2026-10-15T06:41:01.710Z 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.