MeiHua Holdings Group Co (SHSE:600873) Return-on-Tangible-Asset: 8.75% (As of Jun. 2026) — 11% Below Median

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SHSE:600873 MeiHua Holdings Group Co Ltd SHSE:600873
77 GF Score
Price ¥7.67
GF Value ¥10.77
Valuation Modestly Undervalued
! 2 Warning Signs
View Full Analysis

What is MeiHua Holdings Group Co Return-on-Tangible-Asset?

MeiHua Holdings Group Co SHSE:600873 -2.54% 77 Return-on-Tangible-Asset is 8.75% as of Jun. 2026, which is 11% below its 10-year median of 9.80. GuruFocus rates SHSE:600873 with a GF Score™ of 77/100 and a GF Value™ of ¥10.77 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,618 Chemicals companies, MeiHua Holdings Group Co ranks better than 80.9% on this metric.

Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. MeiHua Holdings Group Co's annualized Net Income for the quarter that ended in Jun. 2026 was ¥2,176 Mil. MeiHua Holdings Group Co's average total tangible assets for the quarter that ended in Jun. 2026 was ¥24,872 Mil. Therefore, MeiHua Holdings Group Co's annualized Return-on-Tangible-Asset for the quarter that ended in Jun. 2026 was 8.75%.

The historical rank and industry rank for MeiHua Holdings Group Co's Return-on-Tangible-Asset or its related term are showing as below:

SHSE:600873' s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 5.51   Med: 9.8   Max: 20.4
Current: 8.97

During the past 13 years, MeiHua Holdings Group Co's highest Return-on-Tangible-Asset was 20.40%. The lowest was 5.51%. And the median was 9.80%.

SHSE:600873's Return-on-Tangible-Asset is ranked better than
80.9% of 1618 companies
in the Chemicals industry
Industry Median: 3.62 vs SHSE:600873: 8.97

MeiHua Holdings Group Co  (SHSE:600873) Return-on-Tangible-Asset Explanation

Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.


Be Aware

Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the company’s earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a company’s tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.


MeiHua Holdings Group Co Return-on-Tangible-Asset Related Terms


MeiHua Holdings Group Co Return-on-Tangible-Asset Historical Data

* Premium members only.

The historical data trend for MeiHua Holdings Group Co's Return-on-Tangible-Asset 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.

MeiHua Holdings Group Co Return-on-Tangible-Asset Chart

MeiHua Holdings Group Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Return-on-Tangible-Asset
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.80 20.40 14.00 12.31 14.02

MeiHua Holdings Group Co Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Return-on-Tangible-Asset 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 13.15 21.36 4.20 1.94 8.75

SHSE:600873 vs LIN, SHW, ECL: Return-on-Tangible-Asset Comparison

For the Specialty Chemicals subindustry, MeiHua Holdings Group Co's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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.


MeiHua Holdings Group Co Return-on-Tangible-Asset vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, MeiHua Holdings Group Co's Return-on-Tangible-Asset distribution charts can be found below:

* The bar in red indicates where MeiHua Holdings Group Co's Return-on-Tangible-Asset falls into.


SHSE:600873
77GF Score
MeiHua Holdings Group Co Ltd SHSE:600873
Return-on-Tangible-Asset is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

MeiHua Holdings Group Co Return-on-Tangible-Asset Calculation

MeiHua Holdings Group Co's annualized Return-on-Tangible-Asset for the fiscal year that ended in Dec. 2025 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=3280.88/( (22440.957+24346.907)/ 2 )
=3280.88/23393.932
=14.02 %

MeiHua Holdings Group Co's annualized Return-on-Tangible-Asset for the quarter that ended in Jun. 2026 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(Q: Jun. 2026 )  (Q: Mar. 2026 )(Q: Jun. 2026 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(Q: Jun. 2026 )  (Q: Mar. 2026 )(Q: Jun. 2026 )
=2175.768/( (24402.258+25342.481)/ 2 )
=2175.768/24872.3695
=8.75 %

* 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.

In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Jun. 2026) net income data.

What does a Return-on-Tangible-Asset of 8.75% mean?
MeiHua Holdings Group Co (SHSE:600873) has a Return-on-Tangible-Asset of 8.75% as of Jun. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on MeiHua Holdings Group Co and its competitors. This is 11% below median its historical median of 9.80. Over the past decade, MeiHua Holdings Group Co's Return-on-Tangible-Asset has ranged from 5.51 to 20.40. According to the industry distribution chart, MeiHua Holdings Group Co ranks #309 out of 1618 companies in the Chemicals industry, placing it in the top 19.1%.
Is MeiHua Holdings Group Co's Return-on-Tangible-Asset too high?
MeiHua Holdings Group Co's current Return-on-Tangible-Asset of 8.75% is 11% below median its 10-year median of 9.80. Over the past 10 years, this metric has ranged from a low of 5.51 to a high of 20.40. The Chemicals industry median Return-on-Tangible-Asset is 3.62. MeiHua Holdings Group Co's value of 8.75% is 141.7% above this industry median. Based on the distribution chart, MeiHua Holdings Group Co ranks #309 out of 1618 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, MeiHua Holdings Group Co has a GF Score™ of 77/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does MeiHua Holdings Group Co's Return-on-Tangible-Asset compare to LIN and SHW?
According to the Chemicals industry distribution chart, MeiHua Holdings Group Co ranks #309 out of 1618 companies for Return-on-Tangible-Asset. This places MeiHua Holdings Group Co in the top 19% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.62. MeiHua Holdings Group Co's value of 8.75% is 141.7% above this benchmark. Historically, MeiHua Holdings Group Co's own Return-on-Tangible-Asset has ranged from 5.51 to 20.40 over the past decade. While the company's 10-year median is 9.80 vs. the industry median of 3.62, MeiHua Holdings Group Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for a Chemicals company?
The median Return-on-Tangible-Asset among Chemicals companies is 3.62, based on 1,618 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. MeiHua Holdings Group Co's current Return-on-Tangible-Asset of 8.75% is 141.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on MeiHua Holdings Group Co and its competitors. For the Chemicals industry, the median Return-on-Tangible-Asset is 3.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MeiHua Holdings Group Co's current Return-on-Tangible-Asset is 8.75%, which is 11% below median its own 10-year median of 9.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MeiHua Holdings Group Co stock overvalued right now?
Based on GuruFocus' analysis, MeiHua Holdings Group Co (SHSE:600873) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥10.77, compared to a current price of ¥7.67 — trading 28.8% below its estimated fair value. The current Return-on-Tangible-Asset is 8.75%, which is 11% below median its 10-year median of 9.80 and 141.7% above the Chemicals industry median of 3.62. MeiHua Holdings Group Co's overall GF Score™ is 77/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For MeiHua Holdings Group Co (SHSE:600873), the current Return-on-Tangible-Asset is 8.75% as of Jun. 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 MeiHua Holdings Group Co (SHSE:600873) Overvalued in 2026?

Based on GuruFocus' analysis, MeiHua Holdings Group Co stock appears to be undervalued. The current stock price of ¥7.67 is trading 28.8% below its estimated GF Value™ of ¥10.77. GuruFocus considers MeiHua Holdings Group Co to be Modestly Undervalued.

Key valuation signals for SHSE:600873:

  • Return-on-Tangible-Asset: 8.75% (11% below median its 10-year median of 9.80)
  • GF Value™: ¥10.77 vs. price of ¥7.67 (28.8% below fair value)
  • GF Score™: 77/100 with 2 warning signs
  • Industry Position: 141.7% above the Chemicals median (#309 of 1618)

No single metric tells the full story. See the SHSE:600873 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


MeiHua Holdings Group Co Business Description

Address No. 66, Huaxiang Road, Economic and Technological Development Zone, Hebei Province, Langfang, CHN, 065001
MeiHua Holdings Group Co Ltd is a China-based supplier of amino acid nutrition and health solution. Its products include Food additives, condiment, colloid, Amino acids, capsule, fertilizer, bulk by-products (such as corn germ and protein powder) and among others. The company mainly operates its businesses in the domestic and overseas markets.
77GF Score

Get the complete analysis for SHSE:600873

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

¥7.67
Price
¥10.77
GF Value