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Chu Kong Petroleum and Natural Gas Steel Pipe Holdings (HKSE:01938) Return-on-Tangible-Equity Explanation
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.
Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Return-on-Tangible-Equity Related Terms
Chu Kong Petroleum and Natural Gas Steel Pipe 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.
Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Return-on-Tangible-Equity Chart
Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Annual Data
* 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.
Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Return-on-Tangible-Equity vs Steel Industry
* 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 10.17% mean?
Chu Kong Petroleum and Natural Gas Steel Pipe Holdings (HKSE:01938) has a Return-on-Tangible-Equity of 10.17% 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 Chu Kong Petroleum and Natural Gas Steel Pipe Holdings and its competitors. This is 43% below median its historical median of 17.95. According to the industry distribution chart, Chu Kong Petroleum and Natural Gas Steel Pipe Holdings ranks #61 out of 614 companies in the Steel industry, placing it in the top 9.9%.
Is Chu Kong Petroleum and Natural Gas Steel Pipe Holdings' Return-on-Tangible-Equity too high?
Chu Kong Petroleum and Natural Gas Steel Pipe Holdings' current Return-on-Tangible-Equity of 10.17% is 43% below median its 10-year median of 17.95. The Steel industry median Return-on-Tangible-Equity is 4.20. Chu Kong Petroleum and Natural Gas Steel Pipe Holdings' value of 10.17% is 142.4% above this industry median. Based on the distribution chart, Chu Kong Petroleum and Natural Gas Steel Pipe Holdings ranks #61 out of 614 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, Chu Kong Petroleum and Natural Gas Steel Pipe Holdings has a GF Score™ of 46/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chu Kong Petroleum and Natural Gas Steel Pipe Holdings' Return-on-Tangible-Equity compare to NUE and STLD?
According to the Steel industry distribution chart, Chu Kong Petroleum and Natural Gas Steel Pipe Holdings ranks #61 out of 614 companies for Return-on-Tangible-Equity. This places Chu Kong Petroleum and Natural Gas Steel Pipe Holdings in the top 10% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 4.20. Chu Kong Petroleum and Natural Gas Steel Pipe Holdings' value of 10.17% is 142.4% above this benchmark. While the company's 10-year median is 17.95 vs. the industry median of 4.20, Chu Kong Petroleum and Natural Gas Steel Pipe 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 Steel company?
The median Return-on-Tangible-Equity among Steel companies is 4.20, based on 614 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. Chu Kong Petroleum and Natural Gas Steel Pipe Holdings's current Return-on-Tangible-Equity of 10.17% is 142.4% 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 Chu Kong Petroleum and Natural Gas Steel Pipe Holdings and its competitors. For the Steel industry, the median Return-on-Tangible-Equity is 4.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chu Kong Petroleum and Natural Gas Steel Pipe Holdings's current Return-on-Tangible-Equity is 10.17%, which is 43% below median its own 10-year median of 17.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chu Kong Petroleum and Natural Gas Steel Pipe Holdings stock overvalued right now?
Based on GuruFocus' analysis, Chu Kong Petroleum and Natural Gas Steel Pipe Holdings (HKSE:01938) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.17, compared to a current price of HK$0.22 — trading 31.2% above its estimated fair value. The current Return-on-Tangible-Equity is 10.17%, which is 43% below median its 10-year median of 17.95 and 142.4% above the Steel industry median of 4.20. Chu Kong Petroleum and Natural Gas Steel Pipe Holdings' overall GF Score™ is 46/100 with 6 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 Chu Kong Petroleum and Natural Gas Steel Pipe Holdings (HKSE:01938), the current Return-on-Tangible-Equity is 10.17% 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.
Is Chu Kong Petroleum and Natural Gas Steel Pipe Holdings (HKSE:01938) Overvalued in 2026?
Based on GuruFocus' analysis, Chu Kong Petroleum and Natural Gas Steel Pipe Holdings stock appears to be overvalued.
The current stock price of HK$0.22 is trading 31.2% above its estimated GF Value™ of HK$0.17.
GuruFocus considers Chu Kong Petroleum and Natural Gas Steel Pipe Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:01938:
Return-on-Tangible-Equity: 10.17% (43% below median its 10-year median of 17.95)
GF Value™: HK$0.17 vs. price of HK$0.22 (31.2% above fair value)
Industry Position: 142.4% above the Steel median (#61 of 614)
No single metric tells the full story. See the HKSE:01938 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Ltd operates in the steel pipe business. The group is involved in its key revenue-generating business which is to manufacture and sell welded steel pipes and the provision of related manufacturing services. The group's steel pipes are mainly used for energy transmission including oil and gas transmission pipelines, deep-sea pipelines, city gas networks, petrochemicals, mining, infrastructure construction, offshore engineering, steel structures, and water utilities industries. Further, it is also involved in the development of properties for sale; and property investment activities. The group has a business presence in Mainland China and other countries, of which maximum revenue is derived from Africa.
46GF Score
Get the complete analysis for HKSE:01938
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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