Chengdu Hongqi Chain Co (SZSE:002697) EBIT: ¥699 Mil (TTM As of Mar. 2026)

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SZSE:002697 Chengdu Hongqi Chain Co Ltd SZSE:002697
76 GF Score
Price ¥4.73
GF Value ¥5.01
Valuation Fairly Valued
! 2 Warning Signs
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What is Chengdu Hongqi Chain Co EBIT?

Chengdu Hongqi Chain Co SZSE:002697 +0.64% 76 EBIT is ¥699 Mil as of Mar. 2026. GuruFocus rates SZSE:002697 with a GF Score™ of 76/100 and a GF Value™ of ¥5.01 (Fairly Valued). The stock has 2 warning signs investors should review.

Chengdu Hongqi Chain Co's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was ¥197 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was ¥699 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Chengdu Hongqi Chain Co's annualized ROC % for the quarter that ended in Mar. 2026 was 10.20%. Chengdu Hongqi Chain Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 45.88%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Chengdu Hongqi Chain Co's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 16.14%.


Chengdu Hongqi Chain Co  (SZSE:002697) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Chengdu Hongqi Chain Co's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=645.992 * ( 1 - 25.29% )/( (4709.039 + 4755.48)/ 2 )
=482.6206232/4732.2595
=10.20 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=8305.012 - 1655.485 - ( 2931.385 - max(0, 3209.984 - 5150.472+2931.385))
=4709.039

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=8408.261 - 1567.114 - ( 2743.833 - max(0, 3177.197 - 5262.864+2743.833))
=4755.48

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Chengdu Hongqi Chain Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=789.976/( ( (1744.084 + max(-684.415, 0)) + (1699.839 + max(-350.886, 0)) )/ 2 )
=789.976/( ( 1744.084 + 1699.839 )/ 2 )
=789.976/1721.9615
=45.88 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(118.815 + 1870.182 + 142.095) - (1655.485 + 0 + 1160.022)
=-684.415

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(126.014 + 2122.307 + 190.451) - (1567.114 + 0 + 1222.544)
=-350.886

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Chengdu Hongqi Chain Co's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=699.112/4332.842
=16.14 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Chengdu Hongqi Chain Co EBIT Related Terms


Chengdu Hongqi Chain Co EBIT Historical Data

* Premium members only.

The historical data trend for Chengdu Hongqi Chain Co's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Chengdu Hongqi Chain Co EBIT Chart

Chengdu Hongqi Chain Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 616.22 618.22 697.64 646.83 690.36

Chengdu Hongqi Chain Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 188.74 154.66 173.67 173.28 197.49

SZSE:002697 vs DDS: EBIT Comparison

For the Department Stores subindustry, Chengdu Hongqi Chain Co's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Chengdu Hongqi Chain Co EV-to-EBIT vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Chengdu Hongqi Chain Co's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Chengdu Hongqi Chain Co's EV-to-EBIT falls into.


SZSE:002697
76GF Score
Chengdu Hongqi Chain Co Ltd SZSE:002697
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Chengdu Hongqi Chain Co EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was ¥699 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of ¥699 Mil mean?
Chengdu Hongqi Chain Co (SZSE:002697) has a EBIT of ¥699 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Chengdu Hongqi Chain Co.
Is Chengdu Hongqi Chain Co's EBIT too high?
Chengdu Hongqi Chain Co's current EBIT is ¥699 Mil. Overall, Chengdu Hongqi Chain Co has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Chengdu Hongqi Chain Co's EBIT compare to DDS?
Chengdu Hongqi Chain Co's EBIT of ¥699 Mil can be compared against companies in the Retail - Cyclical industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Retail - Cyclical company?
A good EBIT depends on the Retail - Cyclical industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Chengdu Hongqi Chain Co. Chengdu Hongqi Chain Co's current EBIT is ¥699 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chengdu Hongqi Chain Co stock overvalued right now?
Based on GuruFocus' analysis, Chengdu Hongqi Chain Co (SZSE:002697) is currently considered Fairly Valued. The stock's GF Value™ is ¥5.01, compared to a current price of ¥4.73 — trading 5.6% below its estimated fair value. The current EBIT is ¥699 Mil. Chengdu Hongqi Chain Co's overall GF Score™ is 76/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Chengdu Hongqi Chain Co (SZSE:002697), the current EBIT is ¥699 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Chengdu Hongqi Chain Co (SZSE:002697) Overvalued in 2026?

Based on GuruFocus' analysis, Chengdu Hongqi Chain Co stock appears to be undervalued. The current stock price of ¥4.73 is trading 5.6% below its estimated GF Value™ of ¥5.01. GuruFocus considers Chengdu Hongqi Chain Co to be Fairly Valued.

Key valuation signals for SZSE:002697:

  • EBIT: ¥699 Mil
  • GF Value™: ¥5.01 vs. price of ¥4.73 (5.6% below fair value)
  • GF Score™: 76/100 with 2 warning signs

No single metric tells the full story. See the SZSE:002697 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Chengdu Hongqi Chain Co Business Description

Address No.7, Dikang Avenue, High-tech Zone, West District, Sichuan, Chengdu, CHN, 611731
Chengdu Hongqi Chain Co Ltd is engaged in operating supermarket chain.
76GF Score

Get the complete analysis for SZSE:002697

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

¥4.73
Price
¥5.01
GF Value