Henan Lingrui Pharmaceutical Co (SHSE:600285) Return-on-Tangible-Equity: 36.46% (As of Mar. 2026) — 91% Above Median

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SHSE:600285 Henan Lingrui Pharmaceutical Co Ltd SHSE:600285
92 GF Score
Price ¥22.40
GF Value ¥24.43
Valuation Fairly Valued
! 2 Warning Signs
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What is Henan Lingrui Pharmaceutical Co Return-on-Tangible-Equity?

Henan Lingrui Pharmaceutical Co SHSE:600285 -2.82% 92 Return-on-Tangible-Equity is 36.46% as of Mar. 2026, which is 91% above its 10-year median of 19.04. GuruFocus rates SHSE:600285 with a GF Score™ of 92/100 and a GF Value™ of ¥24.43 (Fairly Valued). The stock has 2 warning signs investors should review. Among 901 Drug Manufacturers companies, Henan Lingrui Pharmaceutical Co ranks better than 87.9% 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. Henan Lingrui Pharmaceutical Co's annualized net income for the quarter that ended in Mar. 2026 was ¥985 Mil. Henan Lingrui Pharmaceutical Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ¥2,703 Mil. Therefore, Henan Lingrui Pharmaceutical Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 36.46%.

The historical rank and industry rank for Henan Lingrui Pharmaceutical Co's Return-on-Tangible-Equity or its related term are showing as below:

SHSE:600285' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 11.55   Med: 19.04   Max: 31.51
Current: 31.51

During the past 13 years, Henan Lingrui Pharmaceutical Co's highest Return-on-Tangible-Equity was 31.51%. The lowest was 11.55%. And the median was 19.04%.

SHSE:600285's Return-on-Tangible-Equity is ranked better than
87.9% of 901 companies
in the Drug Manufacturers industry
Industry Median: 7.9 vs SHSE:600285: 31.51

Henan Lingrui Pharmaceutical Co  (SHSE:600285) 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.


Henan Lingrui Pharmaceutical Co Return-on-Tangible-Equity Related Terms


Henan Lingrui Pharmaceutical Co Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Henan Lingrui Pharmaceutical 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.

Henan Lingrui Pharmaceutical Co Return-on-Tangible-Equity Chart

Henan Lingrui Pharmaceutical 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 17.98 21.63 23.33 26.64 27.93

Henan Lingrui Pharmaceutical Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
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 32.54 43.86 30.37 17.39 36.46

SHSE:600285 vs ZTS, UTHR: Return-on-Tangible-Equity Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Henan Lingrui Pharmaceutical 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.


Henan Lingrui Pharmaceutical Co Return-on-Tangible-Equity vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Henan Lingrui Pharmaceutical Co's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Henan Lingrui Pharmaceutical Co's Return-on-Tangible-Equity falls into.


SHSE:600285
92GF Score
Henan Lingrui Pharmaceutical Co Ltd SHSE:600285
Return-on-Tangible-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Henan Lingrui Pharmaceutical Co Return-on-Tangible-Equity Calculation

Henan Lingrui Pharmaceutical 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 )
=759.503/( (2863.371+2575.403 )/ 2 )
=759.503/2719.387
=27.93 %

Henan Lingrui Pharmaceutical Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=985.336/( (2575.403+2829.923)/ 2 )
=985.336/2702.663
=36.46 %

* 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 four times the quarterly (Mar. 2026) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.

What does a Return-on-Tangible-Equity of 36.46% mean?
Henan Lingrui Pharmaceutical Co (SHSE:600285) has a Return-on-Tangible-Equity of 36.46% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Henan Lingrui Pharmaceutical Co and its competitors. This is 91% above median its historical median of 19.04. Over the past decade, Henan Lingrui Pharmaceutical Co's Return-on-Tangible-Equity has ranged from 11.55 to 31.51. According to the industry distribution chart, Henan Lingrui Pharmaceutical Co ranks #109 out of 901 companies in the Drug Manufacturers industry, placing it in the top 12.1%.
Is Henan Lingrui Pharmaceutical Co's Return-on-Tangible-Equity too high?
Henan Lingrui Pharmaceutical Co's current Return-on-Tangible-Equity of 36.46% is 91% above median its 10-year median of 19.04. Over the past 10 years, this metric has ranged from a low of 11.55 to a high of 31.51. The Drug Manufacturers industry median Return-on-Tangible-Equity is 7.90. Henan Lingrui Pharmaceutical Co's value of 36.46% is 361.5% above this industry median. Based on the distribution chart, Henan Lingrui Pharmaceutical Co ranks #109 out of 901 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Henan Lingrui Pharmaceutical Co has a GF Score™ of 92/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Henan Lingrui Pharmaceutical Co's Return-on-Tangible-Equity compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Henan Lingrui Pharmaceutical Co ranks #109 out of 901 companies for Return-on-Tangible-Equity. This places Henan Lingrui Pharmaceutical Co in the top 12% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.90. Henan Lingrui Pharmaceutical Co's value of 36.46% is 361.5% above this benchmark. Historically, Henan Lingrui Pharmaceutical Co's own Return-on-Tangible-Equity has ranged from 11.55 to 31.51 over the past decade. While the company's 10-year median is 19.04 vs. the industry median of 7.90, Henan Lingrui Pharmaceutical 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 Drug Manufacturers company?
The median Return-on-Tangible-Equity among Drug Manufacturers companies is 7.90, based on 901 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. Henan Lingrui Pharmaceutical Co's current Return-on-Tangible-Equity of 36.46% is 361.5% 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 Henan Lingrui Pharmaceutical Co and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Equity is 7.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Henan Lingrui Pharmaceutical Co's current Return-on-Tangible-Equity is 36.46%, which is 91% above median its own 10-year median of 19.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Henan Lingrui Pharmaceutical Co stock overvalued right now?
Based on GuruFocus' analysis, Henan Lingrui Pharmaceutical Co (SHSE:600285) is currently considered Fairly Valued. The stock's GF Value™ is ¥24.43, compared to a current price of ¥22.40 — trading 8.3% below its estimated fair value. The current Return-on-Tangible-Equity is 36.46%, which is 91% above median its 10-year median of 19.04 and 361.5% above the Drug Manufacturers industry median of 7.90. Henan Lingrui Pharmaceutical Co's overall GF Score™ is 92/100 with 2 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 Henan Lingrui Pharmaceutical Co (SHSE:600285), the current Return-on-Tangible-Equity is 36.46% as of Mar. 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 Henan Lingrui Pharmaceutical Co (SHSE:600285) Overvalued in 2026?

Based on GuruFocus' analysis, Henan Lingrui Pharmaceutical Co stock appears to be undervalued. The current stock price of ¥22.40 is trading 8.3% below its estimated GF Value™ of ¥24.43. GuruFocus considers Henan Lingrui Pharmaceutical Co to be Fairly Valued.

Key valuation signals for SHSE:600285:

  • Return-on-Tangible-Equity: 36.46% (91% above median its 10-year median of 19.04)
  • GF Value™: ¥24.43 vs. price of ¥22.40 (8.3% below fair value)
  • GF Score™: 92/100 with 2 warning signs
  • Industry Position: 361.5% above the Drug Manufacturers median (#109 of 901)

No single metric tells the full story. See the SHSE:600285 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Henan Lingrui Pharmaceutical Co Business Description

Address No. 59 Jiefang Chengguan Road, Xinxian, Xinyang, Henan, CHN, 465550
Henan Lingrui Pharmaceutical Co Ltd is a Chinese company engaged in the development, production, and distribution of pharmaceuticals. The Company's products include tablets, capsules, injections and other medicines.
92GF Score

Get the complete analysis for SHSE:600285

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

¥22.40
Price
¥24.43
GF Value