China A-share · SSE · 688041
Hygon Information Technology (688041) stock analysis: valuation and financials
计算机、通信和其他电子设备制造业
¥201.46 -3.9% Price as of Oct 14, 2026
High-quality domestic CPU/DCU franchise — 69.7% five-year revenue CAGR, 20.0% ROIC, CNY3.0B net cash — but 149x earnings and an 82% base-case downside; growth is real, the price is not.
- Market cap
- ¥468.3B
- P/E
- 149.0x
- EV/Sales
- 25.8x
- FCF yield
- -0.5%
- 52-week range
- ¥197.59 – ¥370.30
Research as of Oct 15, 2026
Business quality scorecard
- Growth100
- Profitability66
- Cash flow13
- Balance sheet100
- Capital allocation83
- Innovation100
- Valuation0
0–100, computed from reported financials; higher is better, and a higher valuation score means cheaper.
How it makes money
Hygon sells high-end server and workstation processors — Hygon general-purpose CPUs and DCU coprocessors — to Chinese OEMs and datacenter operators; FY2025 revenue was CNY14.38B at a 25.1% operating margin, with no disclosed split of revenue or profit between the two chip lines.
Financials by year
| FY2021Jan–Dec 2021 | FY2022Jan–Dec 2022 | FY2023Jan–Dec 2023 | FY2024Jan–Dec 2024 | FY2025Jan–Dec 2025 | |
|---|---|---|---|---|---|
| Revenue | ¥2.3B | ¥5.1B | ¥6.0B | ¥9.2B | ¥14.4B |
| Revenue growth | +126.1% | +121.8% | +17.3% | +52.4% | +56.9% |
| Gross margin | 56.0% | 52.4% | 59.7% | 63.7% | 57.8% |
| Operating margin | 18.9% | 22.2% | 27.9% | 30.4% | 25.1% |
| Net income | ¥327.1M | ¥803.7M | ¥1.3B | ¥1.9B | ¥2.5B |
| Free cash flow | -¥154.6M | -¥1.4B | -¥104.4M | ¥31.8M | ¥926.9M |
| FCF margin | -6.7% | -27.8% | -1.7% | 0.3% | 6.4% |
Amounts in CNY · What is free cash flow?
Margins FY2025 gross margin 57.8% versus 63.7% in FY2024 (-5.9pp) and operating margin 25.1% versus 30.4% (-5.4pp); TTM gross 55.8%, operating 22.9%. Main reason: cost of revenue grew 82.4% while revenue grew 56.9%.
- Cash flow ConcernTTM operating cash flow is -CNY507M against net income of CNY3,142M; FY2025 OCF of CNY2,097M also lagged net income of CNY2,545M (cash conversion 0.68x).
- Debt LowNet cash position of CNY3.0B: total debt CNY4.3B against cash CNY7.3B; net debt/EBITDA -0.55x, debt/equity 17.1%, current ratio 4.8x.
Balance sheet Leverage · Net cash
- Cash & short-term investments
- ¥7.3B
- Total debt
- ¥4.3B
- Net cash
- ¥3.0B
- Interest coverage
- 59.5x
- Current ratio
- 4.8x
As of Jun 30, 2026 · Amounts in CNY · How to read a balance sheet
Management and track record
- Management AdequateOperating execution is strong: revenue grew from 1.02B CNY FY2020 to 14.38B FY2025 (5y CAGR 69.7%), with ROIC rising from -1.8% to 20.0% and FY2025 net income of 2.545B CNY.
Valuation range
Implied value per share · Price when researched: ¥201.46
Each scenario assumes five years of revenue growth, an FCF margin and an exit multiple, discounted to today. The assumptions and sensitivities are in the full report.
The full report also covers
- Revenue, growth and outlook of each segment
- Moat and main competitors
- Key risks
- Capital allocation: where the free cash flow went
- What management promised, and what they delivered
- Scenario assumptions and sensitivities
- A source for every claim
- Ask AI about this company
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