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Tang Palace (China) HoldingsHKSE:01181 Return-on-Tangible-Equity is -52.48% as of Dec. 2025. The stock has 7 warning signs investors should review. Among 332 Restaurants companies, Tang Palace (China) Holdings ranks worse than 87.95% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Tang Palace (China) Holdings's annualized net income for the quarter that ended in Dec. 2025 was HK$-90.5 Mil. Tang Palace (China) Holdings's average shareholder tangible equity for the quarter that ended in Dec. 2025 was HK$172.5 Mil. Therefore, Tang Palace (China) Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was -52.48%.
The historical rank and industry rank for Tang Palace (China) Holdings's Return-on-Tangible-Equity or its related term are showing as below:
HKSE:01181'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -43.21 Med: 13.5 Max: 27.03
Current: -34.6
During the past 13 years, Tang Palace (China) Holdings's highest Return-on-Tangible-Equity was 27.03%. The lowest was -43.21%. And the median was 13.50%.
HKSE:01181's Return-on-Tangible-Equity is ranked worse than 87.95% of 332
companies
in the Restaurants industry
Industry Median: 9.525
vs HKSE:01181: -34.60
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Tang Palace (China) Holdings Return-on-Tangible-Equity Related Terms
Tang Palace (China) Holdings Return-on-Tangible-Equity Historical Data
* 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.
HKSE:01181 vs MCD, SBUX, YUM: Return-on-Tangible-Equity Comparison
For the Restaurants subindustry, Tang Palace (China) Holdings's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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.
Tang Palace (China) Holdings Return-on-Tangible-Equity vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Tang Palace (China) Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Tang Palace (China) Holdings's Return-on-Tangible-Equity falls into.
* 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -52.48% mean?
Tang Palace (China) Holdings (HKSE:01181) has a Return-on-Tangible-Equity of -52.48% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Tang Palace (China) Holdings and its competitors. According to the industry distribution chart, Tang Palace (China) Holdings ranks #292 out of 332 companies in the Restaurants industry, placing it in the top 88%.
Is Tang Palace (China) Holdings' Return-on-Tangible-Equity too high?
Tang Palace (China) Holdings' current Return-on-Tangible-Equity is -52.48%. Based on the distribution chart, Tang Palace (China) Holdings ranks #292 out of 332 companies in the Restaurants industry, which is in the bottom quartile relative to peers.
How does Tang Palace (China) Holdings' Return-on-Tangible-Equity compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Tang Palace (China) Holdings ranks #292 out of 332 companies for Return-on-Tangible-Equity. This places Tang Palace (China) Holdings in the lower half of its industry. The industry median Return-on-Tangible-Equity is 9.53. 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-Equity for a Restaurants company?
The median Return-on-Tangible-Equity among Restaurants companies is 9.53, based on 332 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Tang Palace (China) Holdings and its competitors. For the Restaurants industry, the median Return-on-Tangible-Equity is 9.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tang Palace (China) Holdings's current Return-on-Tangible-Equity is -52.48%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tang Palace (China) Holdings stock overvalued right now?
Based on GuruFocus' analysis, Tang Palace (China) Holdings (HKSE:01181) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.24, compared to a current price of HK$0.10 — trading 58.3% below its estimated fair value. The current Return-on-Tangible-Equity is -52.48%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Tang Palace (China) Holdings (HKSE:01181), the current Return-on-Tangible-Equity is -52.48% as of Dec. 2025. 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.
Tang Palace (China) Holdings Ltd is an investment holding company engaged in restaurant operations and food production. The primary production of the group is located in the People's Republic of China. It offers new dishes, seasonal foods, festive celebrations, basic sauces, food ingredients, and casual dining of different regional cuisines. The company has four operating segments - the Southern China region, the Eastern China region, the Northern China region, and the Western China region. The majority of revenue is generated from the Eastern China segment. The company operates restaurants under the brands of Soup Delice, Tang Palace, Tang's Cuisine, Tang Palace Seafood Restaurant, Canton Tea Room, Social Place, Pepper Lunch, and PappaRich.
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