Zhengye International Holdings Co (HKSE:03363) Return-on-Tangible-Equity: 2.21% (As of Dec. 2025) — 72% Below Median

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HKSE:03363 Zhengye International Holdings Co Ltd HKSE:03363
44 GF Score
Price HK$0.34
GF Value HK$0.41
Valuation Modestly Undervalued
! 8 Warning Signs
View Full Analysis

What is Zhengye International Holdings Co Return-on-Tangible-Equity?

Zhengye International Holdings Co HKSE:03363 44 Return-on-Tangible-Equity is 2.21% as of Dec. 2025, which is 72% below its 10-year median of 7.88. GuruFocus rates HKSE:03363 with a GF Score™ of 44/100 and a GF Value™ of HK$0.41 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 279 Forest Products companies, Zhengye International Holdings Co ranks worse than 55.56% 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. Zhengye International Holdings Co's annualized net income for the quarter that ended in Dec. 2025 was HK$27 Mil. Zhengye International Holdings Co's average shareholder tangible equity for the quarter that ended in Dec. 2025 was HK$1,216 Mil. Therefore, Zhengye International Holdings Co's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 2.21%.

The historical rank and industry rank for Zhengye International Holdings Co's Return-on-Tangible-Equity or its related term are showing as below:

HKSE:03363' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -1.6   Med: 7.88   Max: 36.62
Current: 1.33

During the past 13 years, Zhengye International Holdings Co's highest Return-on-Tangible-Equity was 36.62%. The lowest was -1.60%. And the median was 7.88%.

HKSE:03363's Return-on-Tangible-Equity is ranked worse than
55.56% of 279 companies
in the Forest Products industry
Industry Median: 2.2 vs HKSE:03363: 1.33

Zhengye International Holdings Co  (HKSE:03363) 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.


Zhengye International Holdings Co Return-on-Tangible-Equity Related Terms


Zhengye International Holdings Co Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Zhengye International Holdings Co'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.

Zhengye International Holdings Co Return-on-Tangible-Equity Chart

Zhengye International Holdings Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.79 4.08 -1.60 3.29 1.33

Zhengye International Holdings Co Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Return-on-Tangible-Equity 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 -0.37 2.75 3.87 0.42 2.21

Zhengye International Holdings Co Return-on-Tangible-Equity Competitor Comparison

For the Paper & Paper Products subindustry, Zhengye International Holdings Co'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.


Zhengye International Holdings Co Return-on-Tangible-Equity vs Forest Products Industry

For the Forest Products industry and Basic Materials sector, Zhengye International Holdings Co's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Zhengye International Holdings Co's Return-on-Tangible-Equity falls into.


HKSE:03363
44GF Score
Zhengye International Holdings Co Ltd HKSE:03363
Return-on-Tangible-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Zhengye International Holdings Co Return-on-Tangible-Equity Calculation

Zhengye International Holdings Co's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=16.03/( (1184.511+1225.123 )/ 2 )
=16.03/1204.817
=1.33 %

Zhengye International Holdings Co's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Dec. 2025 )  (Q: Jun. 2025 )(Q: Dec. 2025 )
=26.922/( (1207.208+1225.123)/ 2 )
=26.922/1216.1655
=2.21 %

* 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 2.21% mean?
Zhengye International Holdings Co (HKSE:03363) has a Return-on-Tangible-Equity of 2.21% 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 Zhengye International Holdings Co and its competitors. This is 72% below median its historical median of 7.88. According to the industry distribution chart, Zhengye International Holdings Co ranks #155 out of 279 companies in the Forest Products industry, placing it in the top 55.6%.
Is Zhengye International Holdings Co's Return-on-Tangible-Equity too high?
Zhengye International Holdings Co's current Return-on-Tangible-Equity of 2.21% is 72% below median its 10-year median of 7.88. The Forest Products industry median Return-on-Tangible-Equity is 2.20. Zhengye International Holdings Co's value of 2.21% is 0.5% above this industry median. Based on the distribution chart, Zhengye International Holdings Co ranks #155 out of 279 companies in the Forest Products industry, which is below the industry midpoint. Overall, Zhengye International Holdings Co has a GF Score™ of 44/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zhengye International Holdings Co's Return-on-Tangible-Equity compare to competitors?
According to the Forest Products industry distribution chart, Zhengye International Holdings Co ranks #155 out of 279 companies for Return-on-Tangible-Equity. This places Zhengye International Holdings Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 2.20. Zhengye International Holdings Co's value of 2.21% is 0.5% above this benchmark. While the company's 10-year median is 7.88 vs. the industry median of 2.20, Zhengye International Holdings 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-Equity for a Forest Products company?
The median Return-on-Tangible-Equity among Forest Products companies is 2.20, based on 279 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. Zhengye International Holdings Co's current Return-on-Tangible-Equity of 2.21% is 0.5% 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 Zhengye International Holdings Co and its competitors. For the Forest Products industry, the median Return-on-Tangible-Equity is 2.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhengye International Holdings Co's current Return-on-Tangible-Equity is 2.21%, which is 72% below median its own 10-year median of 7.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhengye International Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, Zhengye International Holdings Co (HKSE:03363) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$0.41, compared to a current price of HK$0.34 — trading 18.3% below its estimated fair value. The current Return-on-Tangible-Equity is 2.21%, which is 72% below median its 10-year median of 7.88 and 0.5% above the Forest Products industry median of 2.20. Zhengye International Holdings Co's overall GF Score™ is 44/100 with 8 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 Zhengye International Holdings Co (HKSE:03363), the current Return-on-Tangible-Equity is 2.21% 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 Zhengye International Holdings Co (HKSE:03363) Overvalued in 2026?

Based on GuruFocus' analysis, Zhengye International Holdings Co stock appears to be undervalued. The current stock price of HK$0.34 is trading 18.3% below its estimated GF Value™ of HK$0.41. GuruFocus considers Zhengye International Holdings Co to be Modestly Undervalued.

Key valuation signals for HKSE:03363:

  • Return-on-Tangible-Equity: 2.21% (72% below median its 10-year median of 7.88)
  • GF Value™: HK$0.41 vs. price of HK$0.34 (18.3% below fair value)
  • GF Score™: 44/100 with 8 warning signs
  • Industry Position: 0.5% above the Forest Products median (#155 of 279)

No single metric tells the full story. See the HKSE:03363 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Zhengye International Holdings Co Business Description

Address 28 Boai No.6 Road, 20th Floor, Building 2, Ocean Plaza, Eastern District, Guangdong, Zhongshan, CHN
Zhengye International Holdings Co Ltd is an investment holding company. The company, along with its subsidiaries, is principally engaged in the manufacturing and sale of paper, paperboard and paper-based packaging products. Operating Segments of the company are: Packaging paper segment produces and sells corrugated medium paper and craft paper; and Paper-based packaging products segment produces and sells craft cartons, color-printed cartons, honeycomb paper products and color box packaging. It operates in PRC. It generates maximum revenue from Sales of packaging paper products.
44GF Score

Get the complete analysis for HKSE:03363

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

HK$0.34
Price
HK$0.41
GF Value