Henan Tongxin Transmission Co (BJSE:920454) ROA %: 6.51% (As of Jun. 2026) — 13% 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.

BJSE:920454 Henan Tongxin Transmission Co Ltd BJSE:920454
83 GF Score
Price ¥10.96
GF Value ¥13.69
Valuation Modestly Undervalued
! 4 Warning Signs
View Full Analysis

What is Henan Tongxin Transmission Co ROA %?

Henan Tongxin Transmission Co BJSE:920454 83 ROA % is 6.51% as of Jun. 2026, which is 13% below its 10-year median of 7.44. GuruFocus rates BJSE:920454 with a GF Score™ of 83/100 and a GF Value™ of ¥13.69 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,331 Vehicles & Parts companies, Henan Tongxin Transmission Co ranks better than 75.96% on this metric.

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Henan Tongxin Transmission Co's annualized Net Income for the quarter that ended in Jun. 2026 was ¥26.7 Mil. Henan Tongxin Transmission Co's average Total Assets over the quarter that ended in Jun. 2026 was ¥410.8 Mil. Therefore, Henan Tongxin Transmission Co's annualized ROA % for the quarter that ended in Jun. 2026 was 6.51%.

The historical rank and industry rank for Henan Tongxin Transmission Co's ROA % or its related term are showing as below:

BJSE:920454' s ROA % Range Over the Past 10 Years
Min: 4.57   Med: 7.44   Max: 14.19
Current: 6.66

During the past 13 years, Henan Tongxin Transmission Co's highest ROA % was 14.19%. The lowest was 4.57%. And the median was 7.44%.

BJSE:920454's ROA % is ranked better than
75.96% of 1331 companies
in the Vehicles & Parts industry
Industry Median: 3.05 vs BJSE:920454: 6.66

Henan Tongxin Transmission Co  (BJSE:920454) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Jun. 2026 )
=Net Income/Total Assets
=26.748/410.819
=(Net Income / Revenue)*(Revenue / Total Assets)
=(26.748 / 144.64)*(144.64 / 410.819)
=Net Margin %*Asset Turnover
=18.49 %*0.3521
=6.51 %

Note: The Net Income data used here is four times the quarterly (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 2026) revenue data.

* 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.


Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


Henan Tongxin Transmission Co ROA % Related Terms


Henan Tongxin Transmission Co ROA % Historical Data

* Premium members only.

The historical data trend for Henan Tongxin Transmission Co's ROA % 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 Tongxin Transmission Co ROA % Chart

Henan Tongxin Transmission Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.32 5.64 6.01 6.07 6.75

Henan Tongxin Transmission Co Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
ROA % 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 7.68 7.40 5.45 7.23 6.51

BJSE:920454 vs ORLY, AZO: ROA % Comparison

For the Auto Parts subindustry, Henan Tongxin Transmission Co's ROA %, along with its competitors' market caps and ROA % 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 Tongxin Transmission Co ROA % vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Henan Tongxin Transmission Co's ROA % distribution charts can be found below:

* The bar in red indicates where Henan Tongxin Transmission Co's ROA % falls into.


BJSE:920454
83GF Score
Henan Tongxin Transmission Co Ltd BJSE:920454
ROA % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Henan Tongxin Transmission Co ROA % Calculation

Henan Tongxin Transmission Co's annualized ROA % for the fiscal year that ended in Dec. 2025 is calculated as:

ROA %=Net Income (A: Dec. 2025 )/( (Total Assets (A: Dec. 2024 )+Total Assets (A: Dec. 2025 ))/ count )
=27.248/( (395.552+412.332)/ 2 )
=27.248/403.942
=6.75 %

Henan Tongxin Transmission Co's annualized ROA % for the quarter that ended in Jun. 2026 is calculated as:

ROA %=Net Income (Q: Jun. 2026 )/( (Total Assets (Q: Mar. 2026 )+Total Assets (Q: Jun. 2026 ))/ count )
=26.748/( (415.29+406.348)/ 2 )
=26.748/410.819
=6.51 %

* 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 ROA %, the net income of the last fiscal year and the average total assets 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. ROA % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROA % →
What does a ROA % of 6.51% mean?
Henan Tongxin Transmission Co (BJSE:920454) has a ROA % of 6.51% as of Jun. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Henan Tongxin Transmission Co and its competitors. This is 13% below median its historical median of 7.44. Over the past decade, Henan Tongxin Transmission Co's ROA % has ranged from 4.57 to 14.19. According to the industry distribution chart, Henan Tongxin Transmission Co ranks #320 out of 1331 companies in the Vehicles & Parts industry, placing it in the top 24%.
Is Henan Tongxin Transmission Co's ROA % too high?
Henan Tongxin Transmission Co's current ROA % of 6.51% is 13% below median its 10-year median of 7.44. Over the past 10 years, this metric has ranged from a low of 4.57 to a high of 14.19. The Vehicles & Parts industry median ROA % is 3.05. Henan Tongxin Transmission Co's value of 6.51% is 113.4% above this industry median. Based on the distribution chart, Henan Tongxin Transmission Co ranks #320 out of 1331 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Henan Tongxin Transmission Co has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Henan Tongxin Transmission Co's ROA % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Henan Tongxin Transmission Co ranks #320 out of 1331 companies for ROA %. This places Henan Tongxin Transmission Co in the top 24% of its industry — outperforming the majority of peers. The industry median ROA % is 3.05. Henan Tongxin Transmission Co's value of 6.51% is 113.4% above this benchmark. Historically, Henan Tongxin Transmission Co's own ROA % has ranged from 4.57 to 14.19 over the past decade. While the company's 10-year median is 7.44 vs. the industry median of 3.05, Henan Tongxin Transmission 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 ROA % for a Vehicles & Parts company?
The median ROA % among Vehicles & Parts companies is 3.05, based on 1,331 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Henan Tongxin Transmission Co's current ROA % of 6.51% is 113.4% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Henan Tongxin Transmission Co and its competitors. For the Vehicles & Parts industry, the median ROA % is 3.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Henan Tongxin Transmission Co's current ROA % is 6.51%, which is 13% below median its own 10-year median of 7.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Henan Tongxin Transmission Co stock overvalued right now?
Based on GuruFocus' analysis, Henan Tongxin Transmission Co (BJSE:920454) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥13.69, compared to a current price of ¥10.96 — trading 19.9% below its estimated fair value. The current ROA % is 6.51%, which is 13% below median its 10-year median of 7.44 and 113.4% above the Vehicles & Parts industry median of 3.05. Henan Tongxin Transmission Co's overall GF Score™ is 83/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Henan Tongxin Transmission Co (BJSE:920454), the current ROA % is 6.51% 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 Henan Tongxin Transmission Co (BJSE:920454) Overvalued in 2026?

Based on GuruFocus' analysis, Henan Tongxin Transmission Co stock appears to be undervalued. The current stock price of ¥10.96 is trading 19.9% below its estimated GF Value™ of ¥13.69. GuruFocus considers Henan Tongxin Transmission Co to be Modestly Undervalued.

Key valuation signals for BJSE:920454:

  • ROA %: 6.51% (13% below median its 10-year median of 7.44)
  • GF Value™: ¥13.69 vs. price of ¥10.96 (19.9% below fair value)
  • GF Score™: 83/100 with 4 warning signs
  • Industry Position: 113.4% above the Vehicles & Parts median (#320 of 1331)

No single metric tells the full story. See the BJSE:920454 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Henan Tongxin Transmission Co Business Description

Address South of Changqing Street, Economic and Technological Development Zone, Weidu District, Henan Province, Xuchang City, CHN, 461000
Henan Tongxin Transmission Co Ltd engages in the research and development, production, and sales of all kinds of automobile drive shafts, providing comprehensive one-stop solutions for industry customers. Its product offerings comprise Drive shaft with support (front axle), Telescopic Drive Shaft (Rear Shaft), Coupled drive shafts, Wing drive shafts, and spare parts.
83GF Score

Get the complete analysis for BJSE:920454

ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

¥10.96
Price
¥13.69
GF Value