Zhong Ao Home Group (HKSE:01538) ROA %: 4.54% (As of Dec. 2025) — 10% Below Median

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HKSE:01538 Zhong Ao Home Group Ltd HKSE:01538
50 GF Score
Price HK$0.60
GF Value HK$0.39
Valuation Significantly Overvalued
! 4 Warning Signs
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What is Zhong Ao Home Group ROA %?

Zhong Ao Home Group HKSE:01538 -1.65% 50 ROA % is 4.54% as of Dec. 2025, which is 10% below its 10-year median of 5.06. GuruFocus rates HKSE:01538 with a GF Score™ of 50/100 and a GF Value™ of HK$0.39 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 1,797 Real Estate companies, Zhong Ao Home Group ranks better than 77.69% on this metric.

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Zhong Ao Home Group's annualized Net Income for the quarter that ended in Dec. 2025 was HK$100 Mil. Zhong Ao Home Group's average Total Assets over the quarter that ended in Dec. 2025 was HK$2,204 Mil. Therefore, Zhong Ao Home Group's annualized ROA % for the quarter that ended in Dec. 2025 was 4.54%.

The historical rank and industry rank for Zhong Ao Home Group's ROA % or its related term are showing as below:

HKSE:01538' s ROA % Range Over the Past 10 Years
Min: -0.68   Med: 5.06   Max: 7.9
Current: 4.99

During the past 12 years, Zhong Ao Home Group's highest ROA % was 7.90%. The lowest was -0.68%. And the median was 5.06%.

HKSE:01538's ROA % is ranked better than
77.69% of 1797 companies
in the Real Estate industry
Industry Median: 1.82 vs HKSE:01538: 4.99

Zhong Ao Home Group  (HKSE:01538) 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: Dec. 2025 )
=Net Income/Total Assets
=100/2204.284
=(Net Income / Revenue)*(Revenue / Total Assets)
=(100 / 2085.226)*(2085.226 / 2204.284)
=Net Margin %*Asset Turnover
=4.8 %*0.946
=4.54 %

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.


Zhong Ao Home Group ROA % Related Terms


Zhong Ao Home Group ROA % Historical Data

* Premium members only.

The historical data trend for Zhong Ao Home Group'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.

Zhong Ao Home Group ROA % Chart

Zhong Ao Home Group 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 5.07 3.53 3.94 4.38 5.04

Zhong Ao Home Group Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
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 3.12 4.87 3.78 5.45 4.54

HKSE:01538 vs CBRE, BEKE, JLL: ROA % Comparison

For the Real Estate Services subindustry, Zhong Ao Home 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.


Zhong Ao Home Group ROA % vs Real Estate Industry

For the Real Estate industry and Real Estate sector, Zhong Ao Home Group's ROA % distribution charts can be found below:

* The bar in red indicates where Zhong Ao Home Group's ROA % falls into.


HKSE:01538
50GF Score
Zhong Ao Home Group Ltd HKSE:01538
ROA % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Zhong Ao Home Group ROA % Calculation

Zhong Ao Home Group'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 )
=108.467/( (2071.481+2234.329)/ 2 )
=108.467/2152.905
=5.04 %

Zhong Ao Home Group's annualized ROA % for the quarter that ended in Dec. 2025 is calculated as:

ROA %=Net Income (Q: Dec. 2025 )/( (Total Assets (Q: Jun. 2025 )+Total Assets (Q: Dec. 2025 ))/ count )
=100/( (2174.239+2234.329)/ 2 )
=100/2204.284
=4.54 %

* 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.

Frequently Asked Questions Learn more about ROA % →
What does a ROA % of 4.54% mean?
Zhong Ao Home Group (HKSE:01538) has a ROA % of 4.54% 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 Zhong Ao Home Group and its competitors. This is 10% below median its historical median of 5.06. According to the industry distribution chart, Zhong Ao Home Group ranks #401 out of 1797 companies in the Real Estate industry, placing it in the top 22.3%.
Is Zhong Ao Home Group's ROA % too high?
Zhong Ao Home Group's current ROA % of 4.54% is 10% below median its 10-year median of 5.06. The Real Estate industry median ROA % is 1.82. Zhong Ao Home Group's value of 4.54% is 149.5% above this industry median. Based on the distribution chart, Zhong Ao Home Group ranks #401 out of 1797 companies in the Real Estate industry, which is in the top quartile — a strong position relative to peers. Overall, Zhong Ao Home Group has a GF Score™ of 50/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zhong Ao Home Group's ROA % compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Zhong Ao Home Group ranks #401 out of 1797 companies for ROA %. This places Zhong Ao Home Group in the top 22% of its industry — outperforming the majority of peers. The industry median ROA % is 1.82. Zhong Ao Home Group's value of 4.54% is 149.5% above this benchmark. While the company's 10-year median is 5.06 vs. the industry median of 1.82, Zhong Ao Home Group 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 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. Zhong Ao Home Group's current ROA % of 4.54% is 149.5% 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 Zhong Ao Home 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. Zhong Ao Home Group's current ROA % is 4.54%, which is 10% below median its own 10-year median of 5.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhong Ao Home Group stock overvalued right now?
Based on GuruFocus' analysis, Zhong Ao Home Group (HKSE:01538) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.39, compared to a current price of HK$0.60 — trading 52.6% above its estimated fair value. The current ROA % is 4.54%, which is 10% below median its 10-year median of 5.06 and 149.5% above the Real Estate industry median of 1.82. Zhong Ao Home Group's overall GF Score™ is 50/100 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 Zhong Ao Home Group (HKSE:01538), the current ROA % is 4.54% 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 Zhong Ao Home Group (HKSE:01538) Overvalued in 2026?

Based on GuruFocus' analysis, Zhong Ao Home Group stock appears to be overvalued. The current stock price of HK$0.60 is trading 52.6% above its estimated GF Value™ of HK$0.39. GuruFocus considers Zhong Ao Home Group to be Significantly Overvalued.

Key valuation signals for HKSE:01538:

  • ROA %: 4.54% (10% below median its 10-year median of 5.06)
  • GF Value™: HK$0.39 vs. price of HK$0.60 (52.6% above fair value)
  • GF Score™: 50/100 with 4 warning signs
  • Industry Position: 149.5% above the Real Estate median (#401 of 1797)

No single metric tells the full story. See the HKSE:01538 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Zhong Ao Home Group Business Description

Address 2 Baichen Lu, Chihua She Qu, 1601 Block 1, Pacific Dingwang Commercial Centre, Chencun Town, Shunde District, Guangdong Province, Foshan, CHN
Zhong Ao Home Group Ltd operates as a property manager. It is engaged in the provision of property management services, the provision of cleaning and greening services, and other services. It also provides other business, including sales of elevators and installation services, provision of security services, real estate consulting and agency services, sales assistance services, engineering services, catering services and the sale of engineering spare parts. Its segments include Property management business, Cleaning and greening business, and Other businesses. The Property management business derives the majority of its revenue from Mainland China.
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Get the complete analysis for HKSE:01538

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

HK$0.60
Price
HK$0.39
GF Value