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Zhongzhi Pharmaceutical HoldingsHKSE:03737 47 Return-on-Tangible-Equity is 1.59% as of Dec. 2025, which is 86% below its 10-year median of 11.56. GuruFocus rates HKSE:03737 with a GF Score™ of 47/100 and a GF Value™ of HK$0.89 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 895 Drug Manufacturers companies, Zhongzhi Pharmaceutical Holdings ranks worse than 66.93% on this metric.
The historical rank and industry rank for Zhongzhi Pharmaceutical Holdings's Return-on-Tangible-Equity or its related term are showing as below:
HKSE:03737'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 1.61 Med: 11.56 Max: 19.15
Current: 1.61
During the past 12 years, Zhongzhi Pharmaceutical Holdings's highest Return-on-Tangible-Equity was 19.15%. The lowest was 1.61%. And the median was 11.56%.
HKSE:03737's Return-on-Tangible-Equity is ranked worse than 66.93% of 895
companies
in the Drug Manufacturers industry
Industry Median: 7.5
vs HKSE:03737: 1.61
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.
Zhongzhi Pharmaceutical Holdings Return-on-Tangible-Equity Related Terms
Zhongzhi Pharmaceutical 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:03737 vs ZTS: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Zhongzhi Pharmaceutical 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.
Zhongzhi Pharmaceutical Holdings Return-on-Tangible-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Zhongzhi Pharmaceutical Holdings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Zhongzhi Pharmaceutical 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 1.59% mean?
Zhongzhi Pharmaceutical Holdings (HKSE:03737) has a Return-on-Tangible-Equity of 1.59% 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 Zhongzhi Pharmaceutical Holdings and its competitors. This is 86% below median its historical median of 11.56. Over the past decade, Zhongzhi Pharmaceutical Holdings' Return-on-Tangible-Equity has ranged from 1.61 to 19.15. According to the industry distribution chart, Zhongzhi Pharmaceutical Holdings ranks #599 out of 895 companies in the Drug Manufacturers industry, placing it in the top 66.9%.
Is Zhongzhi Pharmaceutical Holdings' Return-on-Tangible-Equity too high?
Zhongzhi Pharmaceutical Holdings' current Return-on-Tangible-Equity of 1.59% is 86% below median its 10-year median of 11.56. Over the past 10 years, this metric has ranged from a low of 1.61 to a high of 19.15. The Drug Manufacturers industry median Return-on-Tangible-Equity is 7.50. Zhongzhi Pharmaceutical Holdings' value of 1.59% is 78.8% below this industry median. Based on the distribution chart, Zhongzhi Pharmaceutical Holdings ranks #599 out of 895 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Zhongzhi Pharmaceutical Holdings has a GF Score™ of 47/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zhongzhi Pharmaceutical Holdings' Return-on-Tangible-Equity compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Zhongzhi Pharmaceutical Holdings ranks #599 out of 895 companies for Return-on-Tangible-Equity. This places Zhongzhi Pharmaceutical Holdings in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.50. Zhongzhi Pharmaceutical Holdings' value of 1.59% is 78.8% below this benchmark. Historically, Zhongzhi Pharmaceutical Holdings' own Return-on-Tangible-Equity has ranged from 1.61 to 19.15 over the past decade. While the company's 10-year median is 11.56 vs. the industry median of 7.50, Zhongzhi Pharmaceutical Holdings has consistently been below 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 Drug Manufacturers company?
The median Return-on-Tangible-Equity among Drug Manufacturers companies is 7.50, based on 895 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. Zhongzhi Pharmaceutical Holdings's current Return-on-Tangible-Equity of 1.59% is 78.8% below 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 Zhongzhi Pharmaceutical Holdings and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Equity is 7.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhongzhi Pharmaceutical Holdings's current Return-on-Tangible-Equity is 1.59%, which is 86% below median its own 10-year median of 11.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhongzhi Pharmaceutical Holdings stock overvalued right now?
Based on GuruFocus' analysis, Zhongzhi Pharmaceutical Holdings (HKSE:03737) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$0.89, compared to a current price of HK$0.71 — trading 20.2% below its estimated fair value. The current Return-on-Tangible-Equity is 1.59%, which is 86% below median its 10-year median of 11.56 and 78.8% below the Drug Manufacturers industry median of 7.50. Zhongzhi Pharmaceutical Holdings' overall GF Score™ is 47/100 with 7 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 Zhongzhi Pharmaceutical Holdings (HKSE:03737), the current Return-on-Tangible-Equity is 1.59% 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 Zhongzhi Pharmaceutical Holdings (HKSE:03737) Overvalued in 2026?
Based on GuruFocus' analysis, Zhongzhi Pharmaceutical Holdings stock appears to be undervalued.
The current stock price of HK$0.71 is trading 20.2% below its estimated GF Value™ of HK$0.89.
GuruFocus considers Zhongzhi Pharmaceutical Holdings to be Modestly Undervalued.
Key valuation signals for HKSE:03737:
Return-on-Tangible-Equity: 1.59% (86% below median its 10-year median of 11.56)
GF Value™: HK$0.89 vs. price of HK$0.71 (20.2% below fair value)
Industry Position: 78.8% below the Drug Manufacturers median (#599 of 895)
No single metric tells the full story. See the HKSE:03737 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhongzhi Pharmaceutical Holdings Ltd is an investment holding company principally engaged in the manufacture and sale of pharmaceutical products in the PRC. The Group is a large industrial and trading enterprise group featuring researching, producing, and selling traditional Chinese medicine preparations, prepared slices of Chinese crude drugs, and foods. Its products include Shenqi Koufuye, Yinhuang Jiaonang, Yinhuang Keli, and others. Its segments are the pharmaceutical manufacturing segment, which generates maximum revenue, is engaged in the research and development, manufacturing, and sale of Chinese patent medicines and decoction pieces consisting of traditional decoction pieces and modern decoction pieces, and the operation of the chain pharmacies segment.
47GF Score
Get the complete analysis for HKSE:03737
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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