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Hongfa Technology CoSHSE:600885 -3.48%94 Return-on-Tangible-Equity is 15.64% as of Mar. 2026, which is 17% below its 10-year median of 18.86. GuruFocus rates SHSE:600885 with a GF Score™ of 94/100 and a GF Value™ of ¥30.93 (Fairly Valued). The stock has 3 warning signs investors should review. Among 2,972 Industrial Products companies, Hongfa Technology Co ranks better than 81.56% 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. Hongfa Technology Co's annualized net income for the quarter that ended in Mar. 2026 was ¥1,937 Mil. Hongfa Technology Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ¥12,384 Mil. Therefore, Hongfa Technology Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 15.64%.
The historical rank and industry rank for Hongfa Technology Co's Return-on-Tangible-Equity or its related term are showing as below:
SHSE:600885'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 16.62 Med: 18.86 Max: 20.52
Current: 17.09
During the past 13 years, Hongfa Technology Co's highest Return-on-Tangible-Equity was 20.52%. The lowest was 16.62%. And the median was 18.86%.
SHSE:600885's Return-on-Tangible-Equity is ranked better than 81.56% of 2972
companies
in the Industrial Products industry
Industry Median: 6.78
vs SHSE:600885: 17.09
Hongfa Technology Co (SHSE:600885) 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.
Hongfa Technology Co Return-on-Tangible-Equity Related Terms
Hongfa Technology Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Hongfa Technology 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.
Hongfa Technology Co Return-on-Tangible-Equity Chart
SHSE:600885 vs VRT, BE: Return-on-Tangible-Equity Comparison
For the Electrical Equipment & Parts subindustry, Hongfa Technology 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.
Hongfa Technology Co Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Hongfa Technology Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Hongfa Technology 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 (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 15.64% mean?
Hongfa Technology Co (SHSE:600885) has a Return-on-Tangible-Equity of 15.64% 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 Hongfa Technology Co and its competitors. This is 17% below median its historical median of 18.86. Over the past decade, Hongfa Technology Co's Return-on-Tangible-Equity has ranged from 16.62 to 20.52. According to the industry distribution chart, Hongfa Technology Co ranks #548 out of 2972 companies in the Industrial Products industry, placing it in the top 18.4%.
Is Hongfa Technology Co's Return-on-Tangible-Equity too high?
Hongfa Technology Co's current Return-on-Tangible-Equity of 15.64% is 17% below median its 10-year median of 18.86. Over the past 10 years, this metric has ranged from a low of 16.62 to a high of 20.52. The Industrial Products industry median Return-on-Tangible-Equity is 6.78. Hongfa Technology Co's value of 15.64% is 130.7% above this industry median. Based on the distribution chart, Hongfa Technology Co ranks #548 out of 2972 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Hongfa Technology Co has a GF Score™ of 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hongfa Technology Co's Return-on-Tangible-Equity compare to VRT and BE?
According to the Industrial Products industry distribution chart, Hongfa Technology Co ranks #548 out of 2972 companies for Return-on-Tangible-Equity. This places Hongfa Technology Co in the top 18% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.78. Hongfa Technology Co's value of 15.64% is 130.7% above this benchmark. Historically, Hongfa Technology Co's own Return-on-Tangible-Equity has ranged from 16.62 to 20.52 over the past decade. While the company's 10-year median is 18.86 vs. the industry median of 6.78, Hongfa Technology 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 an Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 6.78, based on 2,972 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. Hongfa Technology Co's current Return-on-Tangible-Equity of 15.64% is 130.7% 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 Hongfa Technology Co and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hongfa Technology Co's current Return-on-Tangible-Equity is 15.64%, which is 17% below median its own 10-year median of 18.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hongfa Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Hongfa Technology Co (SHSE:600885) is currently considered Fairly Valued. The stock's GF Value™ is ¥30.93, compared to a current price of ¥34.15 — trading 10.4% above its estimated fair value. The current Return-on-Tangible-Equity is 15.64%, which is 17% below median its 10-year median of 18.86 and 130.7% above the Industrial Products industry median of 6.78. Hongfa Technology Co's overall GF Score™ is 94/100 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 Hongfa Technology Co (SHSE:600885), the current Return-on-Tangible-Equity is 15.64% 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 Hongfa Technology Co (SHSE:600885) Overvalued in 2026?
Based on GuruFocus' analysis, Hongfa Technology Co stock appears to be overvalued.
The current stock price of ¥34.15 is trading 10.4% above its estimated GF Value™ of ¥30.93.
GuruFocus considers Hongfa Technology Co to be Fairly Valued.
Key valuation signals for SHSE:600885:
Return-on-Tangible-Equity: 15.64% (17% below median its 10-year median of 18.86)
GF Value™: ¥30.93 vs. price of ¥34.15 (10.4% above fair value)
Industry Position: 130.7% above the Industrial Products median (#548 of 2972)
No single metric tells the full story. See the SHSE:600885 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hongfa Technology Co Ltd is engaged in Research, manufacture and selling relays, low voltage electrical appliances, contactors, automation equipment and related electronic components and assemblies, electromechanical products, mechanical equipment.
94GF Score
Get the complete analysis for SHSE:600885
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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