Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Newborn TownHKSE:09911 +5.24%90 Return-on-Tangible-Equity is 56.44% as of Dec. 2025, which is 357% above its 10-year median of 12.34. GuruFocus rates HKSE:09911 with a GF Score™ of 90/100 and a GF Value™ of HK$6.54 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 2,485 Software companies, Newborn Town ranks better than 85.84% 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. Newborn Town's annualized net income for the quarter that ended in Dec. 2025 was HK$984 Mil. Newborn Town's average shareholder tangible equity for the quarter that ended in Dec. 2025 was HK$1,743 Mil. Therefore, Newborn Town's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 56.44%.
The historical rank and industry rank for Newborn Town's Return-on-Tangible-Equity or its related term are showing as below:
HKSE:09911'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -466.24 Med: 12.34 Max: 127.15
Current: 68.54
During the past 10 years, Newborn Town's highest Return-on-Tangible-Equity was 127.15%. The lowest was -466.24%. And the median was 12.34%.
HKSE:09911's Return-on-Tangible-Equity is ranked better than 85.84% of 2485
companies
in the Software industry
Industry Median: 9.9
vs HKSE:09911: 68.54
Newborn Town (HKSE:09911) 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.
Newborn Town Return-on-Tangible-Equity Related Terms
Newborn Town Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Newborn Town'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:09911 vs CRM, SHOP, UBER: Return-on-Tangible-Equity Comparison
For the Software - Application subindustry, Newborn Town'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.
Newborn Town Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Newborn Town's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Newborn Town'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 56.44% mean?
Newborn Town (HKSE:09911) has a Return-on-Tangible-Equity of 56.44% 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 Newborn Town and its competitors. This is 357% above median its historical median of 12.34. According to the industry distribution chart, Newborn Town ranks #352 out of 2485 companies in the Software industry, placing it in the top 14.2%.
Is Newborn Town's Return-on-Tangible-Equity too high?
Newborn Town's current Return-on-Tangible-Equity of 56.44% is 357% above median its 10-year median of 12.34. The Software industry median Return-on-Tangible-Equity is 9.90. Newborn Town's value of 56.44% is 470.1% above this industry median. Based on the distribution chart, Newborn Town ranks #352 out of 2485 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Newborn Town has a GF Score™ of 90/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Newborn Town's Return-on-Tangible-Equity compare to CRM and SHOP?
According to the Software industry distribution chart, Newborn Town ranks #352 out of 2485 companies for Return-on-Tangible-Equity. This places Newborn Town in the top 14% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 9.90. Newborn Town's value of 56.44% is 470.1% above this benchmark. While the company's 10-year median is 12.34 vs. the industry median of 9.90, Newborn Town 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 Software company?
The median Return-on-Tangible-Equity among Software companies is 9.90, based on 2,485 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. Newborn Town's current Return-on-Tangible-Equity of 56.44% is 470.1% 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 Newborn Town and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 9.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Newborn Town's current Return-on-Tangible-Equity is 56.44%, which is 357% above median its own 10-year median of 12.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Newborn Town stock overvalued right now?
Based on GuruFocus' analysis, Newborn Town (HKSE:09911) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$6.54, compared to a current price of HK$8.95 — trading 36.8% above its estimated fair value. The current Return-on-Tangible-Equity is 56.44%, which is 357% above median its 10-year median of 12.34 and 470.1% above the Software industry median of 9.90. Newborn Town's overall GF Score™ is 90/100 with 1 warning sign 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 Newborn Town (HKSE:09911), the current Return-on-Tangible-Equity is 56.44% 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 Newborn Town (HKSE:09911) Overvalued in 2026?
Based on GuruFocus' analysis, Newborn Town stock appears to be overvalued.
The current stock price of HK$8.95 is trading 36.8% above its estimated GF Value™ of HK$6.54.
GuruFocus considers Newborn Town to be Significantly Overvalued.
Key valuation signals for HKSE:09911:
Return-on-Tangible-Equity: 56.44% (357% above median its 10-year median of 12.34)
GF Value™: HK$6.54 vs. price of HK$8.95 (36.8% above fair value)
Industry Position: 470.1% above the Software median (#352 of 2485)
No single metric tells the full story. See the HKSE:09911 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Newborn Town Inc is an investment holding company. The Company and its subsidiaries are principally engaged in providing social networking business (mainly through social networking Apps such as MICO, SUGO, Blued and TopTop) and inventive business (mainly through advertising service and merchandise sales). The company operates through two segments namely, Innovative business and Social networking business. The company generates the majority of its revenue from the Social networking business segment.
90GF Score
Get the complete analysis for HKSE:09911
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
HKSE:09911 has been successfully added to your 
