# Hygon Information Technology Co. Ltd. A (688041.SHG)

Canonical: https://gigainvestors.com/s/688041.SHG

Analysis as of: 2026-10-16T07:33:47.915Z. Financial observations: FY2019–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 193.82 per share; close as of 2026-10-15.

Estimated value: low CNY 15.15 per share, central CNY 16.94 per share, high CNY 19.33 per share. Buy at or below the central value CNY 16.94 per share. Valuation as of 2026-10-16T07:33:47.915Z; scenarios are not confidence intervals.

Expected annual return: 3.5% at the stated quote. About 3.5% 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: 7 years

- Years with declining revenue: 0

- Years with a net loss: 2

- Operating margin variation: 2.18×

Chart: Operating margin; fiscal year observations.

- FY2019: -0.37×

- FY2020: -0.09×

- FY2021: 0.19×

- FY2022: 0.21×

- FY2023: 0.24×

- FY2024: 0.30×

- FY2025: 0.25×

### moat: fail

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

- ROIC, median of available years: 15.7%

- ROIC, second-lowest year: 8.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 19.6%

- ROIC including acquisitions, ten-year median: 8.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2020: -2.1%

- FY2021: 8.1%

- FY2022: 16.4%

- FY2023: 15.0%

- FY2024: 18.6%

- FY2025: 20.2%

### economics: pass

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

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 6.7B

- Net income, five-year total: CNY 6.9B

- Working capital / revenue, annual change: 10.0 pp

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

- FY2021: 0.28×

- FY2022: 0.42×

- FY2023: 0.92×

- FY2024: 1.13×

- FY2025: 1.15×

### management: pass

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- Per-share earnings: -0.02 to 0.83 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 2.7%

- Diluted shares, 5-year annual growth: 2.7%

- Per-share value change: CNY 0.85

- Per-share value, starting three-year median: CNY -0.02

- Per-share value, ending three-year median: CNY 0.83

- Buybacks concentrated in cheaper years (correlation): -1.00

- Average buyback yield: 0.4%

- Buyback history: 2 years

- Debt-funded buybacks: Yes

- ROIC, last three-year median: 18.6%

Chart: Earnings per share; fiscal year observations.

- FY2019: CNY -0.05

- FY2020: CNY -0.02

- FY2021: CNY 0.16

- FY2022: CNY 0.38

- FY2023: CNY 0.54

- FY2024: CNY 0.83

- FY2025: CNY 1.10

### accounting: pass

- Sloan accruals: 1.3%

- Receivables to sales index (DSRI): 1.13×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.82×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.15×

Chart: Sloan accruals; fiscal year observations.

- FY2020: 3.7%

- FY2021: -2.6%

- FY2022: 3.9%

- FY2023: 2.0%

- FY2024: 3.3%

- FY2025: 1.3%

## Holders

## Price story

Down 48% since Jun 2026 · sales +56.9%

Story as of 2026-10-16T09:59:57.816Z; price observation 2026-10-15.

Price needs cash profits to grow 34.6% a year for ten years

### Sales · FY2024–2025

sales +56.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2019: CNY 379M 

- FY2020: CNY 1.0B 

- FY2021: CNY 2.3B 

- FY2022: CNY 5.1B 

- FY2023: CNY 6.0B 

- FY2024: CNY 9.2B 

- FY2025: CNY 14B 

### Gross margin · FY2025

gross margin 57.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2020: 50.5% 

- FY2021: 56.0% 

- FY2022: 52.4% 

- FY2023: 59.7% 

- FY2024: 63.7% 

- FY2025: 57.8% 

## Owner memo

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

### How it makes money

Operates in computer hardware; annual sales are CNY 14.4 billion.

- Source: https://eodhd.com/api/fundamentals/688041.SHG.json#2025-12-31 (filed 2026-10-16T07:33:47.915Z); FY2025: revenue 14376889476.95; grossProfit 8313929777.18; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 688041.SHG: Hygon Information Technology Co., Ltd. engages in the research and development of processors, accelerators, and other computing chip products and systems in China. It offers high-performance processors for data centers; mid-range processors for industry customers; and other processors for various scenarios, as well as high-performance domestic processors. The company's products are used in various applications, including commercial workstations, artificial intelligence, cloud computing, cloud storage, data center, scientific computing, industrial computing, and safety. Hygon Information Technology Co., Ltd. was founded in 2014 and is based in Beijing, China.

### Why customers stay

Margins ranged from 57.8% to 63.7% during 2023–25; it earns 15.7% on its capital.

- Source: https://eodhd.com/api/fundamentals/688041.SHG.json#2023-12-31 (filed 2026-10-16T07:33:47.915Z); FY2023: grossProfit / revenue = 59.7%.

- Source: https://eodhd.com/api/fundamentals/688041.SHG.json#2024-12-31 (filed 2026-10-16T07:33:47.915Z); FY2024: grossProfit / revenue = 63.7%.

- Source: https://eodhd.com/api/fundamentals/688041.SHG.json#2025-12-31 (filed 2026-10-16T07:33:47.915Z); FY2025: grossProfit / revenue = 57.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:47.915Z); 7-year return on capital observations [[2020,-0.021033525846620015],[2021,0.0812990582628039],[2022,0.16353276950457338],[2023,0.1496593902631099],[2024,0.18550023215955763],[2025,0.20239511442780847]]; median 0.15659607988384164. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 6 of 6 years; bought back CNY 2.3 billion of shares.

- Source: https://eodhd.com/api/fundamentals/688041.SHG.json#2020-12-31 (filed 2026-10-16T07:33:47.915Z); FY2020: growth capex 0; upkeep 243891507.08; owner earnings 57009153.76999997. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/688041.SHG.json#2021-12-31 (filed 2026-10-16T07:33:47.915Z); FY2021: growth capex 117207982.07821238; upkeep 635339331.0517876; owner earnings 92050664.79221237. Growth capex / owner earnings = 1.2732985942338177.

- Source: https://eodhd.com/api/fundamentals/688041.SHG.json#2022-12-31 (filed 2026-10-16T07:33:47.915Z); FY2022: growth capex 233310655.56980968; upkeep 1148090600.3501904; owner earnings 340477265.2058096. Growth capex / owner earnings = 0.6852459162839536.

- Source: https://eodhd.com/api/fundamentals/688041.SHG.json#2023-12-31 (filed 2026-10-16T07:33:47.915Z); FY2023: growth capex 69876563.08367562; upkeep 848236737.5863243; owner earnings 1157470718.9116755. Growth capex / owner earnings = 0.06037004819385654.

- Source: https://eodhd.com/api/fundamentals/688041.SHG.json#2024-12-31 (filed 2026-10-16T07:33:47.915Z); FY2024: growth capex 0; upkeep 945249705.02; owner earnings 2190728152.7788687. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/688041.SHG.json#2025-12-31 (filed 2026-10-16T07:33:47.915Z); FY2025: growth capex 0; upkeep 1169990765.56; owner earnings 2929758632.209293. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:47.915Z); Dividend observations: [[2020,38445303.81],[2021,17721274.07],[2022,22544508.28],[2023,119378220.13],[2024,281957342.95],[2025,415649557.73]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:47.915Z); FY2025: cash repurchases 2281237356.893333 CNY.

### Are managers owners

Insiders own 64.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 688041.SHG SharesStats.PercentInsiders = 64.832 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 34.6% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:47.915Z); Ten-year compound average after fade. Initial solved rate 0.4973868909924043. Price 193.82; 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)

- 2022-08: CNY 50.18 per share

- 2022-09: CNY 58.82 per share

- 2022-10: CNY 44.68 per share

- 2022-11: CNY 41.44 per share

- 2022-12: CNY 40.12 per share

- 2023-01: CNY 43.01 per share

- 2023-02: CNY 51.88 per share

- 2023-03: CNY 77.17 per share

- 2023-04: CNY 94.15 per share

- 2023-05: CNY 92.73 per share

- 2023-06: CNY 68.27 per share

- 2023-07: CNY 57.09 per share

- 2023-08: CNY 59.19 per share

- 2023-09: CNY 53.98 per share

- 2023-10: CNY 61.97 per share

- 2023-11: CNY 71.77 per share

- 2023-12: CNY 70.98 per share

- 2024-01: CNY 66.27 per share

- 2024-02: CNY 85.12 per share

- 2024-03: CNY 77.26 per share

- 2024-04: CNY 79.25 per share

- 2024-05: CNY 71.30 per share

- 2024-06: CNY 70.32 per share

- 2024-07: CNY 79.50 per share

- 2024-08: CNY 79.39 per share

- 2024-09: CNY 103.28 per share

- 2024-10: CNY 128.42 per share

- 2024-11: CNY 125.81 per share

- 2024-12: CNY 149.79 per share

- 2025-01: CNY 128.00 per share

- 2025-02: CNY 160.00 per share

- 2025-03: CNY 141.30 per share

- 2025-04: CNY 148.60 per share

- 2025-05: CNY 136.13 per share

- 2025-06: CNY 141.29 per share

- 2025-07: CNY 139.20 per share

- 2025-08: CNY 194.52 per share

- 2025-09: CNY 252.60 per share

- 2025-10: CNY 229.33 per share

- 2025-11: CNY 217.30 per share

- 2025-12: CNY 224.41 per share

- 2026-01: CNY 264.44 per share

- 2026-02: CNY 261.10 per share

- 2026-03: CNY 210.26 per share

- 2026-04: CNY 296.25 per share

- 2026-05: CNY 293.90 per share

- 2026-06: CNY 370.30 per share

- 2026-07: CNY 277.00 per share

- 2026-08: CNY 253.90 per share

- 2026-09: CNY 226.80 per share

- 2026-10: CNY 209.74 per share

## Annual estimated value (CNY per share)

- FY2024: low CNY 5.49 per share, central CNY 5.89 per share, high CNY 6.41 per share

- FY2025: low CNY 15.69 per share, central CNY 17.49 per share, high CNY 19.89 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 2026-10-15T06:39:33.238Z 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.