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Zhonglu CoSHSE:600818 +2.20%49 Return-on-Tangible-Equity is 2.80% as of Jun. 2026, which is 0% above its 10-year median of 2.79. GuruFocus rates SHSE:600818 with a GF Score™ of 49/100 and a GF Value™ of ¥10.78 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 796 Travel & Leisure companies, Zhonglu Co ranks worse than 88.57% 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. Zhonglu Co's annualized net income for the quarter that ended in Jun. 2026 was ¥12.6 Mil. Zhonglu Co's average shareholder tangible equity for the quarter that ended in Jun. 2026 was ¥450.7 Mil. Therefore, Zhonglu Co's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 2.80%.
The historical rank and industry rank for Zhonglu Co's Return-on-Tangible-Equity or its related term are showing as below:
SHSE:600818'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -13.86 Med: 2.79 Max: 22.85
Current: -13.64
During the past 13 years, Zhonglu Co's highest Return-on-Tangible-Equity was 22.85%. The lowest was -13.86%. And the median was 2.79%.
SHSE:600818's Return-on-Tangible-Equity is ranked worse than 88.57% of 796
companies
in the Travel & Leisure industry
Industry Median: 7.335
vs SHSE:600818: -13.64
Zhonglu Co (SHSE:600818) 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.
Zhonglu Co Return-on-Tangible-Equity Related Terms
Zhonglu Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Zhonglu 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.
SHSE:600818 vs AS, HAS, LTH: Return-on-Tangible-Equity Comparison
For the Leisure subindustry, Zhonglu 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.
Zhonglu Co Return-on-Tangible-Equity vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Zhonglu Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Zhonglu Co'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 four times the quarterly (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 2.80% mean?
Zhonglu Co (SHSE:600818) has a Return-on-Tangible-Equity of 2.80% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Zhonglu Co and its competitors. This is near median its historical median of 2.79. According to the industry distribution chart, Zhonglu Co ranks #705 out of 796 companies in the Travel & Leisure industry, placing it in the top 88.6%.
Is Zhonglu Co's Return-on-Tangible-Equity too high?
Zhonglu Co's current Return-on-Tangible-Equity of 2.80% is near median its 10-year median of 2.79. The Travel & Leisure industry median Return-on-Tangible-Equity is 7.34. Zhonglu Co's value of 2.80% is 61.8% below this industry median. Based on the distribution chart, Zhonglu Co ranks #705 out of 796 companies in the Travel & Leisure industry, which is in the bottom quartile relative to peers. Overall, Zhonglu Co has a GF Score™ of 49/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Zhonglu Co's Return-on-Tangible-Equity compare to AS and HAS?
According to the Travel & Leisure industry distribution chart, Zhonglu Co ranks #705 out of 796 companies for Return-on-Tangible-Equity. This places Zhonglu Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.34. Zhonglu Co's value of 2.80% is 61.8% below this benchmark. While the company's 10-year median is 2.79 vs. the industry median of 7.34, Zhonglu Co 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 Travel & Leisure company?
The median Return-on-Tangible-Equity among Travel & Leisure companies is 7.34, based on 796 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. Zhonglu Co's current Return-on-Tangible-Equity of 2.80% is 61.8% 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 Zhonglu Co and its competitors. For the Travel & Leisure industry, the median Return-on-Tangible-Equity is 7.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhonglu Co's current Return-on-Tangible-Equity is 2.80%, which is near median its own 10-year median of 2.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhonglu Co stock overvalued right now?
Based on GuruFocus' analysis, Zhonglu Co (SHSE:600818) is currently considered Possible Value Trap. The stock's GF Value™ is ¥10.78, compared to a current price of ¥7.44 — trading 31% below its estimated fair value. The current Return-on-Tangible-Equity is 2.80%, which is near median its 10-year median of 2.79 and 61.8% below the Travel & Leisure industry median of 7.34. Zhonglu Co's overall GF Score™ is 49/100 with 3 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 Zhonglu Co (SHSE:600818), the current Return-on-Tangible-Equity is 2.80% as of Jun. 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 Zhonglu Co (SHSE:600818) Overvalued in 2026?
Based on GuruFocus' analysis, Zhonglu Co stock appears to be undervalued.
The current stock price of ¥7.44 is trading 31% below its estimated GF Value™ of ¥10.78.
GuruFocus considers Zhonglu Co to be Possible Value Trap.
Key valuation signals for SHSE:600818:
Return-on-Tangible-Equity: 2.80% (near median its 10-year median of 2.79)
GF Value™: ¥10.78 vs. price of ¥7.44 (31% below fair value)
Industry Position: 61.8% below the Travel & Leisure median (#705 of 796)
No single metric tells the full story. See the SHSE:600818 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhonglu Co Ltd is engaged in the manufacture and sales of bicycles in China. Its products include bicycles, electric bikes, tricycles, and children bikes. It also offers additional products such as recreation and sports equipment, bowling equipment, automatic chess and card board, and plastic runway. It distributes its products within domestic market and to overseas markets.
49GF Score
Get the complete analysis for SHSE:600818
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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