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Chuan HoldingsHKSE:01420 62 Return-on-Tangible-Equity is 34.65% as of Jun. 2026, which is 899% above its 10-year median of 3.47. GuruFocus rates HKSE:01420 with a GF Score™ of 62/100 and a GF Value™ of HK$0.22 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,716 Construction companies, Chuan Holdings ranks better than 83.51% 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. Chuan Holdings's annualized net income for the quarter that ended in Jun. 2026 was HK$282 Mil. Chuan Holdings's average shareholder tangible equity for the quarter that ended in Jun. 2026 was HK$815 Mil. Therefore, Chuan Holdings's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 34.65%.
The historical rank and industry rank for Chuan Holdings's Return-on-Tangible-Equity or its related term are showing as below:
HKSE:01420'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -9.45 Med: 3.47 Max: 28.49
Current: 28.49
During the past 13 years, Chuan Holdings's highest Return-on-Tangible-Equity was 28.49%. The lowest was -9.45%. And the median was 3.47%.
HKSE:01420's Return-on-Tangible-Equity is ranked better than 83.51% of 1716
companies
in the Construction industry
Industry Median: 8.225
vs HKSE:01420: 28.49
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.
Chuan Holdings Return-on-Tangible-Equity Related Terms
Chuan Holdings Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Chuan Holdings's Return-on-Tangible-Equity 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.
HKSE:01420 vs PWR, FIX, EME: Return-on-Tangible-Equity Comparison
For the Engineering & Construction subindustry, Chuan 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.
Chuan Holdings Return-on-Tangible-Equity vs Construction Industry
For the Construction industry and Industrials sector, Chuan Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Chuan 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 (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 34.65% mean?
Chuan Holdings (HKSE:01420) has a Return-on-Tangible-Equity of 34.65% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Chuan Holdings and its competitors. This is 899% above median its historical median of 3.47. According to the industry distribution chart, Chuan Holdings ranks #283 out of 1716 companies in the Construction industry, placing it in the top 16.5%.
Is Chuan Holdings' Return-on-Tangible-Equity too high?
Chuan Holdings' current Return-on-Tangible-Equity of 34.65% is 899% above median its 10-year median of 3.47. The Construction industry median Return-on-Tangible-Equity is 8.23. Chuan Holdings' value of 34.65% is 321.3% above this industry median. Based on the distribution chart, Chuan Holdings ranks #283 out of 1716 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Chuan Holdings has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chuan Holdings' Return-on-Tangible-Equity compare to PWR and FIX?
According to the Construction industry distribution chart, Chuan Holdings ranks #283 out of 1716 companies for Return-on-Tangible-Equity. This places Chuan Holdings in the top 17% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.23. Chuan Holdings' value of 34.65% is 321.3% above this benchmark. While the company's 10-year median is 3.47 vs. the industry median of 8.23, Chuan Holdings 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-Equity for a Construction company?
The median Return-on-Tangible-Equity among Construction companies is 8.23, based on 1,716 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. Chuan Holdings's current Return-on-Tangible-Equity of 34.65% is 321.3% 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-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 Chuan Holdings and its competitors. For the Construction industry, the median Return-on-Tangible-Equity is 8.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chuan Holdings's current Return-on-Tangible-Equity is 34.65%, which is 899% above median its own 10-year median of 3.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chuan Holdings stock overvalued right now?
Based on GuruFocus' analysis, Chuan Holdings (HKSE:01420) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.22, compared to a current price of HK$0.30 — trading 36.4% above its estimated fair value. The current Return-on-Tangible-Equity is 34.65%, which is 899% above median its 10-year median of 3.47 and 321.3% above the Construction industry median of 8.23. Chuan Holdings' overall GF Score™ is 62/100 with 5 warning signs to review. 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 Chuan Holdings (HKSE:01420), the current Return-on-Tangible-Equity is 34.65% 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 Chuan Holdings (HKSE:01420) Overvalued in 2026?
Based on GuruFocus' analysis, Chuan Holdings stock appears to be overvalued.
The current stock price of HK$0.30 is trading 36.4% above its estimated GF Value™ of HK$0.22.
GuruFocus considers Chuan Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:01420:
Return-on-Tangible-Equity: 34.65% (899% above median its 10-year median of 3.47)
GF Value™: HK$0.22 vs. price of HK$0.30 (36.4% above fair value)
Industry Position: 321.3% above the Construction median (#283 of 1716)
No single metric tells the full story. See the HKSE:01420 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chuan Holdings Ltd is an earthwork contractor. The company's business segments are Earthworks and ancillary services; general construction works; and Property investment. The earthworks and related services include excavation, earth disposal, demolition, and various earthwork ancillary services; General construction works, including construction of new buildings, alternation, and addition works; and Property investment, includes Property leasing and management operations. It generates a majority of its revenue from the Earthworks ancillary services segment.
62GF Score
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Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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