Tonghua Dongbao Pharmaceutical Co (SHSE:600867) Return-on-Tangible-Equity: 9.22% (As of Mar. 2026) — 55% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
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.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
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.

SHSE:600867 Tonghua Dongbao Pharmaceutical Co Ltd SHSE:600867
85 GF Score
Price ¥8.05
GF Value ¥10.28
Valuation Modestly Undervalued
! 6 Warning Signs
View Full Analysis

What is Tonghua Dongbao Pharmaceutical Co Return-on-Tangible-Equity?

Tonghua Dongbao Pharmaceutical Co SHSE:600867 +3.34% 85 Return-on-Tangible-Equity is 9.22% as of Mar. 2026, which is 55% below its 10-year median of 20.65. GuruFocus rates SHSE:600867 with a GF Score™ of 85/100 and a GF Value™ of ¥10.28 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 900 Drug Manufacturers companies, Tonghua Dongbao Pharmaceutical Co ranks better than 82.33% 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. Tonghua Dongbao Pharmaceutical Co's annualized net income for the quarter that ended in Mar. 2026 was ¥507 Mil. Tonghua Dongbao Pharmaceutical Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ¥5,499 Mil. Therefore, Tonghua Dongbao Pharmaceutical Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 9.22%.

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

SHSE:600867' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -0.79   Med: 20.65   Max: 29.04
Current: 23.97

During the past 13 years, Tonghua Dongbao Pharmaceutical Co's highest Return-on-Tangible-Equity was 29.04%. The lowest was -0.79%. And the median was 20.65%.

SHSE:600867's Return-on-Tangible-Equity is ranked better than
82.33% of 900 companies
in the Drug Manufacturers industry
Industry Median: 7.925 vs SHSE:600867: 23.97

Tonghua Dongbao Pharmaceutical Co  (SHSE:600867) 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.


Tonghua Dongbao Pharmaceutical Co Return-on-Tangible-Equity Related Terms


Tonghua Dongbao Pharmaceutical Co Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Tonghua Dongbao 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.

Tonghua Dongbao Pharmaceutical Co Return-on-Tangible-Equity Chart

Tonghua Dongbao 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 25.25 29.04 20.58 -0.79 23.74

Tonghua Dongbao 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 9.01 9.29 79.41 1.23 9.22

SHSE:600867 vs ZTS: Return-on-Tangible-Equity Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Tonghua Dongbao 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.


Tonghua Dongbao Pharmaceutical Co Return-on-Tangible-Equity vs Drug Manufacturers Industry

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

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


SHSE:600867
85GF Score
Tonghua Dongbao Pharmaceutical Co Ltd SHSE:600867
Return-on-Tangible-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Tonghua Dongbao Pharmaceutical Co Return-on-Tangible-Equity Calculation

Tonghua Dongbao 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 )
=1219.053/( (4809.088+5461.3 )/ 2 )
=1219.053/5135.194
=23.74 %

Tonghua Dongbao 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 )
=507.196/( (5461.3+5536.27)/ 2 )
=507.196/5498.785
=9.22 %

* 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 9.22% mean?
Tonghua Dongbao Pharmaceutical Co (SHSE:600867) has a Return-on-Tangible-Equity of 9.22% 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 Tonghua Dongbao Pharmaceutical Co and its competitors. This is 55% below median its historical median of 20.65. According to the industry distribution chart, Tonghua Dongbao Pharmaceutical Co ranks #159 out of 900 companies in the Drug Manufacturers industry, placing it in the top 17.7%.
Is Tonghua Dongbao Pharmaceutical Co's Return-on-Tangible-Equity too high?
Tonghua Dongbao Pharmaceutical Co's current Return-on-Tangible-Equity of 9.22% is 55% below median its 10-year median of 20.65. The Drug Manufacturers industry median Return-on-Tangible-Equity is 7.93. Tonghua Dongbao Pharmaceutical Co's value of 9.22% is 16.3% above this industry median. Based on the distribution chart, Tonghua Dongbao Pharmaceutical Co ranks #159 out of 900 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Tonghua Dongbao Pharmaceutical Co has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tonghua Dongbao Pharmaceutical Co's Return-on-Tangible-Equity compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Tonghua Dongbao Pharmaceutical Co ranks #159 out of 900 companies for Return-on-Tangible-Equity. This places Tonghua Dongbao Pharmaceutical Co in the top 18% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.93. Tonghua Dongbao Pharmaceutical Co's value of 9.22% is 16.3% above this benchmark. While the company's 10-year median is 20.65 vs. the industry median of 7.93, Tonghua Dongbao 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 7.93, based on 900 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. Tonghua Dongbao Pharmaceutical Co's current Return-on-Tangible-Equity of 9.22% is 16.3% 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 Tonghua Dongbao Pharmaceutical Co and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Equity is 7.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tonghua Dongbao Pharmaceutical Co's current Return-on-Tangible-Equity is 9.22%, which is 55% below median its own 10-year median of 20.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tonghua Dongbao Pharmaceutical Co stock overvalued right now?
Based on GuruFocus' analysis, Tonghua Dongbao Pharmaceutical Co (SHSE:600867) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥10.28, compared to a current price of ¥8.05 — trading 21.7% below its estimated fair value. The current Return-on-Tangible-Equity is 9.22%, which is 55% below median its 10-year median of 20.65 and 16.3% above the Drug Manufacturers industry median of 7.93. Tonghua Dongbao Pharmaceutical Co's overall GF Score™ is 85/100 with 6 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 Tonghua Dongbao Pharmaceutical Co (SHSE:600867), the current Return-on-Tangible-Equity is 9.22% 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 Tonghua Dongbao Pharmaceutical Co (SHSE:600867) Overvalued in 2026?

Based on GuruFocus' analysis, Tonghua Dongbao Pharmaceutical Co stock appears to be undervalued. The current stock price of ¥8.05 is trading 21.7% below its estimated GF Value™ of ¥10.28. GuruFocus considers Tonghua Dongbao Pharmaceutical Co to be Modestly Undervalued.

Key valuation signals for SHSE:600867:

  • Return-on-Tangible-Equity: 9.22% (55% below median its 10-year median of 20.65)
  • GF Value™: ¥10.28 vs. price of ¥8.05 (21.7% below fair value)
  • GF Score™: 85/100 with 6 warning signs
  • Industry Position: 16.3% above the Drug Manufacturers median (#159 of 900)

No single metric tells the full story. See the SHSE:600867 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Tonghua Dongbao Pharmaceutical Co Business Description

Address Dongbao Village, Jilin Province, Tonghua, CHN, 134123
Tonghua Dongbao Pharmaceutical Co Ltd is a China-based firm. Its engaged in the production and distribution of pharmaceutical products. Its products include human insulin injection, Heart and brain capsule, Vitamin e soft capsule, and Oral detoxification products.
85GF Score

Get the complete analysis for SHSE:600867

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

¥8.05
Price
¥10.28
GF Value