# Shenzhen Transsion Holdings (688036.SHG)

Canonical: https://gigainvestors.com/s/688036.SHG

Analysis as of: 2026-10-16T07:36:18.828Z. Financial observations: FY2017–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 48.20 per share; close as of 2026-10-15.

Estimated value: low CNY 63.68 per share, central CNY 70.64 per share, high CNY 79.90 per share. Buy at or below the central value CNY 70.64 per share. Valuation as of 2026-10-16T07:36:18.828Z; scenarios are not confidence intervals.

Expected annual return: 14.7% at the stated quote. About 14.7% 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: pass

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

- Financial history: 9 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.34×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.04×

- FY2018: 0.04×

- FY2019: 0.09×

- FY2020: 0.08×

- FY2021: 0.10×

- FY2022: 0.07×

- FY2023: 0.11×

- FY2024: 0.10×

- FY2025: 0.05×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- Recent gross margin fell 16.0pp below the typical margin (limit 4pp)

- ROIC, median of available years: 28.1%

- ROIC, second-lowest year: 22.8%

- Typical minus recent gross margin: 16.0 pp

- Typical gross margin (annual median): 20.9%

- Recent gross margin (lower of latest and 3-year median): 4.9%

- Years with nonpositive capital: 5

- Capital spending / revenue: 1.5%

- ROIC including acquisitions, ten-year median: 61.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: >100%

- FY2018: >100%

- FY2019: 21.7%

- FY2020: 22.8%

- FY2021: 25.9%

- FY2022: >100%

- FY2023: 28.1%

- FY2024: 24.2%

- FY2025: >100%

### economics: pass

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

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 18B

- Net income, five-year total: CNY 20B

- Return on incremental invested capital: 312.4%

- Working capital / revenue, annual change: -0.1 pp

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

- FY2021: 0.93×

- FY2022: 0.71×

- FY2023: 0.99×

- FY2024: 0.98×

- FY2025: 0.72×

### management: pass

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 159.3% vs 28.1%

- Per-share earnings: 0.67 to 4.85 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

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

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

- Per-share value growth: 39.1%

- Per-share value change: CNY 4.18

- Per-share value, starting three-year median: CNY 0.67

- Per-share value, ending three-year median: CNY 4.85

- Average buyback yield: 0.0%

- Buyback history: 1 years

- Debt-funded buybacks: No

- ROIC, first three-year median: >100%

- ROIC, last three-year median: 28.1%

- Buybacks concentrated in cheaper years (correlation): 1.00

Chart: Earnings per share; fiscal year observations.

- FY2017: CNY 0.67

- FY2018: CNY 0.62

- FY2019: CNY 1.58

- FY2020: CNY 2.38

- FY2021: CNY 3.45

- FY2022: CNY 2.20

- FY2023: CNY 4.87

- FY2024: CNY 4.85

- FY2025: CNY 2.25

### accounting: pass

- Sloan accruals: 2.6%

- Receivables to sales index (DSRI): 0.85×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.55×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.05×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -9.5%

- FY2018: -13.7%

- FY2019: -12.7%

- FY2020: -6.2%

- FY2021: -0.4%

- FY2022: 1.6%

- FY2023: -13.8%

- FY2024: 6.0%

- FY2025: 2.6%

## Holders

## Price story

Down 71% since Mar 2024 · sales -4.5%

Story as of 2026-10-16T10:00:07.198Z; price observation 2026-10-15.

Price needs cash profits to shrink 5.3% a year for ten years

### Sales · FY2024–2025

sales -4.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: CNY 20B 

- FY2018: CNY 23B 

- FY2019: CNY 25B 

- FY2020: CNY 38B 

- FY2021: CNY 49B 

- FY2022: CNY 47B 

- FY2023: CNY 62B 

- FY2024: CNY 69B 

- FY2025: CNY 66B 

### Gross margin · FY2025

gross margin 4.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 20.6% 

- FY2018: 24.1% 

- FY2019: 26.9% 

- FY2020: 23.1% 

- FY2021: 20.9% 

- FY2022: 20.9% 

- FY2023: 23.2% 

- FY2024: 20.9% 

- FY2025: 4.9% 

## Owner memo

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

### How it makes money

Operates in consumer electronics; annual sales are CNY 65.6 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:18.828Z); FY2025: revenue 65623479000; grossProfit 3204428000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 688036.SHG: Shenzhen Transsion Holdings Co., Ltd., together with its subsidiaries, provides smart devices and mobile internet services in Africa, South Asia, Southeast Asia, the Middle East, Latin America, and internationally. The company offers mobile phones, feature phones, and smartphones under the TECNO, itel, and Infinix brands; after-sales services under the Carlcare brand; smart accessories under the oraimo brand; home appliances under the Syinix brand; laptops, tablets, and TWS earbuds; energy storage, including hybrid inverter and portable energy storage system under the itel Energy and DYQUE Energy brands; lightweight electric mobility devices, including components and parts for two wheeled electric vehicles and three-wheeled electric vehicles, under brand Revoo; mobile Internet services, including application downloads, gaming, and content viewing; and digital products. It also develops smart terminal operating systems, such as HiOS, itelOS, and XOS, as well as independent application software platforms. The company was incorporated in 2013 and is headquartered in Shenzhen, China.

### Why customers stay

Margins ranged from 4.9% to 23.2% during 2023–25; it earns 28.1% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:18.828Z); FY2023: grossProfit / revenue = 23.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:18.828Z); FY2024: grossProfit / revenue = 20.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:18.828Z); FY2025: grossProfit / revenue = 4.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:18.828Z); 9-year return on capital observations [[2017,1.5927859278828642],[2018,3.9203289322871924],[2019,0.21650750177924566],[2020,0.22815645614143418],[2021,0.25939738164055814],[2022,3.6422732143783514],[2023,0.28090454425322575],[2024,0.24212220696624015],[2025,11.014664819790195]]; median 0.28090454425322575. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 9 of 9 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:18.828Z); FY2017: growth capex 0; upkeep 590074565.13; owner earnings 111233006.87. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:18.828Z); FY2018: growth capex 61363251.378166676; upkeep 665673006.9218333; owner earnings 60139832.07816672. Growth capex / owner earnings = 1.0203429118061025.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:18.828Z); FY2019: growth capex 79658202.02719808; upkeep 338161225.5528019; owner earnings 1555553766.4471982. Growth capex / owner earnings = 0.051208903057805046.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:18.828Z); FY2020: growth capex 192679885.81; upkeep 126275370; owner earnings 2686425720. Growth capex / owner earnings = 0.0717235114209672.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:18.828Z); FY2021: growth capex 374139782.1276738; upkeep 366011653.4623262; owner earnings 3647345851.8456736. Growth capex / owner earnings = 0.10257864138064865.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:18.828Z); FY2022: growth capex 0; upkeep 840095295.44; owner earnings 1762482019.212. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:18.828Z); FY2023: growth capex 610828530.25; upkeep 211759000; owner earnings 5502844599.36. Growth capex / owner earnings = 0.11100232238450665.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:18.828Z); FY2024: growth capex 296106079.103154; upkeep 344085513.896846; owner earnings 5460414560.335154. Growth capex / owner earnings = 0.05422776527886545.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:18.828Z); FY2025: growth capex 0; upkeep 983141523.27; owner earnings 1864574316.608. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:18.828Z); Dividend observations: [[2017,790206024.82],[2018,21315992.47],[2019,216000000],[2020,544000000],[2021,864000000],[2022,1202536425],[2023,3923732668],[2024,4196443032],[2025,2678318055.33]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 53.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 688036.SHG SharesStats.PercentInsiders = 53.232 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 5.3% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:18.828Z); Ten-year compound average after fade. Initial solved rate -0.08779208497635. Price 48.2; 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)

- 2019-09: CNY 57.80 per share

- 2019-10: CNY 41.66 per share

- 2019-11: CNY 39.12 per share

- 2019-12: CNY 45.63 per share

- 2020-01: CNY 73.00 per share

- 2020-02: CNY 57.26 per share

- 2020-03: CNY 42.81 per share

- 2020-04: CNY 54.50 per share

- 2020-05: CNY 50.00 per share

- 2020-06: CNY 71.00 per share

- 2020-07: CNY 100.10 per share

- 2020-08: CNY 111.73 per share

- 2020-09: CNY 96.82 per share

- 2020-10: CNY 122.05 per share

- 2020-11: CNY 137.81 per share

- 2020-12: CNY 152.14 per share

- 2021-01: CNY 206.00 per share

- 2021-02: CNY 196.61 per share

- 2021-03: CNY 209.38 per share

- 2021-04: CNY 174.37 per share

- 2021-05: CNY 178.00 per share

- 2021-06: CNY 209.50 per share

- 2021-07: CNY 162.90 per share

- 2021-08: CNY 147.50 per share

- 2021-09: CNY 141.00 per share

- 2021-10: CNY 157.99 per share

- 2021-11: CNY 167.28 per share

- 2021-12: CNY 156.90 per share

- 2022-01: CNY 135.43 per share

- 2022-02: CNY 135.42 per share

- 2022-03: CNY 95.61 per share

- 2022-04: CNY 84.60 per share

- 2022-05: CNY 87.95 per share

- 2022-06: CNY 89.23 per share

- 2022-07: CNY 70.86 per share

- 2022-08: CNY 68.26 per share

- 2022-09: CNY 58.16 per share

- 2022-10: CNY 62.13 per share

- 2022-11: CNY 77.74 per share

- 2022-12: CNY 79.52 per share

- 2023-01: CNY 85.53 per share

- 2023-02: CNY 80.68 per share

- 2023-03: CNY 101.20 per share

- 2023-04: CNY 109.00 per share

- 2023-05: CNY 125.75 per share

- 2023-06: CNY 147.00 per share

- 2023-07: CNY 122.73 per share

- 2023-08: CNY 146.82 per share

- 2023-09: CNY 145.74 per share

- 2023-10: CNY 134.16 per share

- 2023-11: CNY 110.67 per share

- 2023-12: CNY 138.40 per share

- 2024-01: CNY 136.65 per share

- 2024-02: CNY 158.70 per share

- 2024-03: CNY 168.27 per share

- 2024-04: CNY 144.00 per share

- 2024-05: CNY 93.57 per share

- 2024-06: CNY 76.54 per share

- 2024-07: CNY 80.86 per share

- 2024-08: CNY 80.00 per share

- 2024-09: CNY 107.93 per share

- 2024-10: CNY 95.50 per share

- 2024-11: CNY 94.72 per share

- 2024-12: CNY 95.00 per share

- 2025-01: CNY 100.39 per share

- 2025-02: CNY 92.69 per share

- 2025-03: CNY 90.65 per share

- 2025-04: CNY 74.92 per share

- 2025-05: CNY 72.69 per share

- 2025-06: CNY 79.70 per share

- 2025-07: CNY 76.23 per share

- 2025-08: CNY 90.01 per share

- 2025-09: CNY 94.20 per share

- 2025-10: CNY 76.30 per share

- 2025-11: CNY 64.11 per share

- 2025-12: CNY 66.16 per share

- 2026-01: CNY 58.13 per share

- 2026-02: CNY 57.81 per share

- 2026-03: CNY 54.85 per share

- 2026-04: CNY 57.75 per share

- 2026-05: CNY 60.20 per share

- 2026-06: CNY 58.95 per share

- 2026-07: CNY 64.47 per share

- 2026-08: CNY 57.15 per share

- 2026-09: CNY 53.80 per share

- 2026-10: CNY 48.94 per share

## Annual estimated value (CNY per share)

- FY2021: low CNY 42.85 per share, central CNY 46.88 per share, high CNY 52.25 per share

- FY2022: low CNY 41.77 per share, central CNY 45.59 per share, high CNY 50.67 per share

- FY2023: low CNY 64.45 per share, central CNY 70.32 per share, high CNY 78.13 per share

- FY2024: low CNY 68.95 per share, central CNY 75.63 per share, high CNY 84.52 per share

- FY2025: low CNY 64.61 per share, central CNY 70.98 per share, high CNY 79.45 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 2026-10-15T06:42:02.363Z 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.