# China Resources Microelectronics (688396.SHG)

Canonical: https://gigainvestors.com/s/688396.SHG

Analysis as of: 2026-10-16T07:35:59.425Z. Financial observations: FY2016–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: CNY 48.62 per share; close as of 2026-10-15.

Estimated value: low CNY 13.30 per share, central CNY 14.09 per share, high CNY 15.14 per share. Buy at or below the central value CNY 14.09 per share. Valuation as of 2026-10-16T07:35:59.425Z; scenarios are not confidence intervals.

Expected annual return: 4.1% at the stated quote. About 4.1% 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: 1

- Operating margin variation: 0.92×

Chart: Operating margin; fiscal year observations.

- FY2016: -0.08×

- FY2017: -0.01×

- FY2018: 0.09×

- FY2019: 0.08×

- FY2020: 0.15×

- FY2021: 0.25×

- FY2022: 0.25×

- FY2023: 0.17×

- FY2024: 0.08×

- FY2025: 0.10×

### moat: fail

- ROIC median below threshold

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

- ROIC, median of available years: 10.6%

- ROIC, second-lowest year: -1.3%

- Typical minus recent gross margin: -0.1 pp

- Typical gross margin (annual median): 26.3%

- Recent gross margin (lower of latest and 3-year median): 26.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 12.2%

- ROIC including acquisitions, ten-year median: 13.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: -11.6%

- FY2017: -1.3%

- FY2018: 10.6%

- FY2019: 10.7%

- FY2020: 24.1%

- FY2021: 33.2%

- FY2022: 30.4%

- FY2023: 13.3%

- FY2024: 4.9%

- FY2025: 6.6%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.31×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 2.4B

- Net income, five-year total: CNY 7.8B

- Return on incremental invested capital: 19.2%

- Working capital / revenue, annual change: -1.9 pp

- Working capital / revenue, change between three-year averages: -13.1 pp

- Working capital / revenue, final three-year average: 28.2%

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

- FY2021: 1.00×

- FY2022: 0.72×

- FY2023: -1.88×

- FY2024: 0.58×

- FY2025: 0.98×

### management: pass

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: -1.3% vs 6.6%

- Per-share earnings: 0.08 to 0.58 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 2.1%

- Diluted shares, 5-year annual growth: 2.1%

- Per-share value growth: 32.6%

- Per-share value change: CNY 0.50

- Per-share value, starting three-year median: CNY 0.08

- Per-share value, ending three-year median: CNY 0.58

- Buyback history: 0 years

- Debt-funded buybacks: No

- Cumulative net income, 10 years: CNY 9.3B

- ROIC, first three-year median: -1.3%

- ROIC, last three-year median: 6.6%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY -0.34

- FY2017: CNY 0.08

- FY2018: CNY 0.49

- FY2019: CNY 0.46

- FY2020: CNY 0.80

- FY2021: CNY 1.72

- FY2022: CNY 1.98

- FY2023: CNY 1.12

- FY2024: CNY 0.58

- FY2025: CNY 0.50

### accounting: pass

- Sloan accruals: -4.7%

- Receivables to sales index (DSRI): 0.66×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 3.16×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.04×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -18.8%

- FY2017: -16.4%

- FY2018: -10.5%

- FY2019: -1.7%

- FY2020: -5.3%

- FY2021: -5.3%

- FY2022: -1.7%

- FY2023: -0.9%

- FY2024: -4.4%

- FY2025: -4.7%

## Holders

## Price story

Down 50% since Jun 2026 · sales +9.2%

Story as of 2026-10-16T10:00:06.465Z; price observation 2026-10-15.

Price needs cash profits to grow 24.6% a year for ten years

### Sales · FY2024–2025

sales +9.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 4.4B 

- FY2017: CNY 5.9B 

- FY2018: CNY 6.3B 

- FY2019: CNY 5.7B 

- FY2020: CNY 7.0B 

- FY2021: CNY 9.2B 

- FY2022: CNY 10B 

- FY2023: CNY 9.9B 

- FY2024: CNY 10B 

- FY2025: CNY 11B 

### Gross margin · FY2025

gross margin 26.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 14.6% 

- FY2017: 17.3% 

- FY2018: 24.7% 

- FY2019: 22.3% 

- FY2020: 27.5% 

- FY2021: 35.6% 

- FY2022: 35.9% 

- FY2023: 31.5% 

- FY2024: 26.2% 

- FY2025: 26.4% 

## Owner memo

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

### How it makes money

Operates in semiconductors; annual sales are CNY 11.1 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:59.425Z); FY2025: revenue 11053792007.48; grossProfit 2916317055.91; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 688396.SHG: China Resources Microelectronics Limited engages in the manufacture and sale of semiconductors in China and internationally. The company offers power devices, power modules, power integrated circuits (ICs), and intelligent sensors and controls. It also provides electric vehicle driving scheme, BMS scheme, landscape tools scheme, LED bulb/downlight, LED filament lamp power supply, dimming power supply, mobile charger power supply, and lithium battery protection board. Its products are used in TV power source, charger/adapter, wireless charging, electric bicycle, UPS power, electric/garden tools, industrial welder, lithium battery protection products, garden tool, vacuum cleaner, electric energy storage, charging post, inverter welding, inverter, e-ciga atomizer, IH, class-D audio amplifier, MPPT, portable energy storage, and high-power supply applications. The company was formerly known as CSMC Technologies Corporation and changed its name to China Resources Microelectronics Limited in 2008. China Resources Microelectronics Limited was founded in 1997 and is headquartered in Wuxi, China. China Resources Microelectronics Limited is a subsidiary of China Resources (Holdings) Co., Ltd.

### Why customers stay

Margins ranged from 26.2% to 31.5% during 2023–25; it earns 10.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:59.425Z); FY2023: grossProfit / revenue = 31.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:59.425Z); FY2024: grossProfit / revenue = 26.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:59.425Z); FY2025: grossProfit / revenue = 26.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:59.425Z); 10-year return on capital observations [[2016,-0.11617243606456311],[2017,-0.012730598002349462],[2018,0.10566209897653973],[2019,0.10677546682781633],[2020,0.24080172706700137],[2021,0.3322931585706204],[2022,0.3036913271690256],[2023,0.13349646727316405],[2024,0.04925614576093139],[2025,0.06606201643885096]]; median 0.10621878290217804. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 33.1% of cash earnings on expansion; earns 19.2% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:59.425Z); FY2016: growth capex 0; upkeep 429122544; owner earnings 262833681. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:59.425Z); FY2017: growth capex 0; upkeep 571169125; owner earnings 864727498. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:59.425Z); FY2018: growth capex 0; upkeep 544423959; owner earnings 825464818. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:59.425Z); FY2019: growth capex 0; upkeep 612313139; owner earnings 481077725. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:59.425Z); FY2020: growth capex 0; upkeep 572640609; owner earnings 1104873827. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:59.425Z); FY2021: growth capex 504406760; upkeep 761375945; owner earnings 2258197543.906. Growth capex / owner earnings = 0.22336697750876505.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:59.425Z); FY2022: growth capex 534168596.0559442; upkeep 1600761973.9440558; owner earnings 1878917230.2899442. Growth capex / owner earnings = 0.28429596974503996.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:59.425Z); FY2024: growth capex 151838543.67635632; upkeep 1416748176.3236437; owner earnings 443344361.3023563. Growth capex / owner earnings = 0.3424844363201543.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:59.425Z); FY2025: growth capex 213738314.5; upkeep 1294305965.07; owner earnings 644945422.652. Growth capex / owner earnings = 0.33140527398599595.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:59.425Z); Incremental return on capital 0.19163816372687864, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:59.425Z); Dividend observations: [[2016,16308696],[2017,5142365],[2018,128005761],[2019,155073737],[2020,78870599],[2021,122322479],[2022,253477286],[2023,326971987.99],[2024,191369968],[2025,112785436.79]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 67.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 688396.SHG SharesStats.PercentInsiders = 67.796 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 24.6% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:59.425Z); Ten-year compound average after fade. Initial solved rate 0.34607390958985507. Price 48.62; 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)

- 2020-02: CNY 47.80 per share

- 2020-03: CNY 32.38 per share

- 2020-04: CNY 37.83 per share

- 2020-05: CNY 38.43 per share

- 2020-06: CNY 43.44 per share

- 2020-07: CNY 57.31 per share

- 2020-08: CNY 49.27 per share

- 2020-09: CNY 56.16 per share

- 2020-10: CNY 48.05 per share

- 2020-11: CNY 61.50 per share

- 2020-12: CNY 62.49 per share

- 2021-01: CNY 60.09 per share

- 2021-02: CNY 60.81 per share

- 2021-03: CNY 55.81 per share

- 2021-04: CNY 63.50 per share

- 2021-05: CNY 62.20 per share

- 2021-06: CNY 91.02 per share

- 2021-07: CNY 100.00 per share

- 2021-08: CNY 75.40 per share

- 2021-09: CNY 68.85 per share

- 2021-10: CNY 61.78 per share

- 2021-11: CNY 71.58 per share

- 2021-12: CNY 64.60 per share

- 2022-01: CNY 54.69 per share

- 2022-02: CNY 58.67 per share

- 2022-03: CNY 54.77 per share

- 2022-04: CNY 48.68 per share

- 2022-05: CNY 52.88 per share

- 2022-06: CNY 59.07 per share

- 2022-07: CNY 50.60 per share

- 2022-08: CNY 52.40 per share

- 2022-09: CNY 47.62 per share

- 2022-10: CNY 50.66 per share

- 2022-11: CNY 53.10 per share

- 2022-12: CNY 52.65 per share

- 2023-01: CNY 54.87 per share

- 2023-02: CNY 54.19 per share

- 2023-03: CNY 60.46 per share

- 2023-04: CNY 57.25 per share

- 2023-05: CNY 59.48 per share

- 2023-06: CNY 52.41 per share

- 2023-07: CNY 57.35 per share

- 2023-08: CNY 58.53 per share

- 2023-09: CNY 54.09 per share

- 2023-10: CNY 53.15 per share

- 2023-11: CNY 46.96 per share

- 2023-12: CNY 44.69 per share

- 2024-01: CNY 37.84 per share

- 2024-02: CNY 42.85 per share

- 2024-03: CNY 38.96 per share

- 2024-04: CNY 36.49 per share

- 2024-05: CNY 38.17 per share

- 2024-06: CNY 37.44 per share

- 2024-07: CNY 39.76 per share

- 2024-08: CNY 34.71 per share

- 2024-09: CNY 47.15 per share

- 2024-10: CNY 50.40 per share

- 2024-11: CNY 50.36 per share

- 2024-12: CNY 47.19 per share

- 2025-01: CNY 45.59 per share

- 2025-02: CNY 47.00 per share

- 2025-03: CNY 44.80 per share

- 2025-04: CNY 46.07 per share

- 2025-05: CNY 47.63 per share

- 2025-06: CNY 47.16 per share

- 2025-07: CNY 46.63 per share

- 2025-08: CNY 52.40 per share

- 2025-09: CNY 55.55 per share

- 2025-10: CNY 50.74 per share

- 2025-11: CNY 46.43 per share

- 2025-12: CNY 52.86 per share

- 2026-01: CNY 63.77 per share

- 2026-02: CNY 57.10 per share

- 2026-03: CNY 44.54 per share

- 2026-04: CNY 56.65 per share

- 2026-05: CNY 64.09 per share

- 2026-06: CNY 97.55 per share

- 2026-07: CNY 54.30 per share

- 2026-08: CNY 61.39 per share

- 2026-09: CNY 55.10 per share

- 2026-10: CNY 49.82 per share

## Annual estimated value (CNY per share)

- FY2020: low CNY 14.75 per share, central CNY 15.91 per share, high CNY 17.45 per share

- FY2021: low CNY 19.88 per share, central CNY 21.43 per share, high CNY 23.50 per share

- FY2022: low CNY 22.63 per share, central CNY 24.45 per share, high CNY 26.87 per share

- FY2023: low CNY 21.73 per share, central CNY 23.52 per share, high CNY 25.90 per share

- FY2024: low CNY 19.66 per share, central CNY 21.48 per share, high CNY 23.91 per share

- FY2025: low CNY 12.40 per share, central CNY 13.13 per share, high CNY 14.11 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 2026-10-15T06:41:42.710Z 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.