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Zhongchang International Holdings Group (HKSE:00859) 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 banks 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:
Note:
The Net Income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) 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.
Zhongchang International Holdings Group ROA % Related Terms
Zhongchang International Holdings Group ROA % Historical 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.
Zhongchang International Holdings Group ROA % Chart
Zhongchang International Holdings Group Annual Data
For the Real Estate Services subindustry, Zhongchang International Holdings Group'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.
Zhongchang International Holdings Group ROA % vs Real Estate Industry
* 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 two times the semi-annual (Dec. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Zhongchang International Holdings Group (HKSE:00859) has a ROA % of -22.58% as of Dec. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Zhongchang International Holdings Group and its competitors. According to the industry distribution chart, Zhongchang International Holdings Group ranks #1678 out of 1797 companies in the Real Estate industry, placing it in the top 93.4%.
Is Zhongchang International Holdings Group's ROA % too high?
Zhongchang International Holdings Group's current ROA % is -22.58%. Based on the distribution chart, Zhongchang International Holdings Group ranks #1678 out of 1797 companies in the Real Estate industry, which is in the bottom quartile relative to peers. Overall, Zhongchang International Holdings Group has a GF Score™ of 36/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Zhongchang International Holdings Group's ROA % compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Zhongchang International Holdings Group ranks #1678 out of 1797 companies for ROA %. This places Zhongchang International Holdings Group in the lower half of its industry. The industry median ROA % is 1.82. 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 Real Estate company?
The median ROA % among Real Estate companies is 1.82, based on 1,797 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. 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 Zhongchang International Holdings Group and its competitors. For the Real Estate industry, the median ROA % is 1.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhongchang International Holdings Group's current ROA % is -22.58%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhongchang International Holdings Group stock overvalued right now?
Based on GuruFocus' analysis, Zhongchang International Holdings Group (HKSE:00859) is currently considered Fairly Valued. The stock's GF Value™ is HK$0.11, compared to a current price of HK$0.12 — trading 6.4% above its estimated fair value. The current ROA % is -22.58%. Zhongchang International Holdings Group's overall GF Score™ is 36/100 with 5 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 Zhongchang International Holdings Group (HKSE:00859), the current ROA % is -22.58% as of Dec. 2025. 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 Zhongchang International Holdings Group (HKSE:00859) Overvalued in 2026?
Based on GuruFocus' analysis, Zhongchang International Holdings Group stock appears to be overvalued.
The current stock price of HK$0.12 is trading 6.4% above its estimated GF Value™ of HK$0.11.
GuruFocus considers Zhongchang International Holdings Group to be Fairly Valued.
Key valuation signals for HKSE:00859:
ROA %: -22.58%
GF Value™: HK$0.11 vs. price of HK$0.12 (6.4% above fair value)
No single metric tells the full story. See the HKSE:00859 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhongchang International Holdings Group Ltd is an investment holding company. Its principal activities are property investments and leasing. The Property Investment segment engages in the leasing of investment properties. The company generates all of its revenue from rental income in Hong Kong.
36GF Score
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