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Lap Kei Engineering (Holdings)HKSE:01690 48 ROA % is 10.87% as of Dec. 2025, which is 135% above its 10-year median of 4.62. GuruFocus rates HKSE:01690 with a GF Score™ of 48/100 and a GF Value™ of HK$0.05 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,787 Construction companies, Lap Kei Engineering (Holdings) ranks better than 66.93% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Lap Kei Engineering (Holdings)'s annualizedNet Income for the quarter that ended in Dec. 2025 was HK$30.5 Mil.
Lap Kei Engineering (Holdings)'s average Total Assets over the quarter that ended in Dec. 2025 was HK$280.8 Mil. Therefore, Lap Kei Engineering (Holdings)'s annualized ROA % for the quarter that ended in Dec. 2025 was 10.87%.
The historical rank and industry rank for Lap Kei Engineering (Holdings)'s ROA % or its related term are showing as below:
HKSE:01690'
s ROA % Range Over the Past 10 Years
Min: -15.29 Med: 4.62 Max: 17.28
Current: 5.11
During the past 12 years, Lap Kei Engineering (Holdings)'s highest ROA % was 17.28%. The lowest was -15.29%. And the median was 4.62%.
HKSE:01690's ROA % is ranked better than 66.93% of 1787
companies
in the Construction industry
Industry Median: 2.87
vs HKSE:01690: 5.11
Lap Kei Engineering (Holdings) (HKSE:01690) 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.
Lap Kei Engineering (Holdings) ROA % Related Terms
Lap Kei Engineering (Holdings) 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.
For the Engineering & Construction subindustry, Lap Kei Engineering (Holdings)'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.
Lap Kei Engineering (Holdings) ROA % vs Construction Industry
For the Construction industry and Industrials sector, Lap Kei Engineering (Holdings)'s ROA % distribution charts can be found below:
* The bar in red indicates where Lap Kei Engineering (Holdings)'s ROA % 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 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.
Lap Kei Engineering (Holdings) (HKSE:01690) has a ROA % of 10.87% 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 Lap Kei Engineering (Holdings) and its competitors. This is 135% above median its historical median of 4.62. According to the industry distribution chart, Lap Kei Engineering (Holdings) ranks #591 out of 1787 companies in the Construction industry, placing it in the top 33.1%.
Is Lap Kei Engineering (Holdings)'s ROA % too high?
Lap Kei Engineering (Holdings)'s current ROA % of 10.87% is 135% above median its 10-year median of 4.62. The Construction industry median ROA % is 2.87. Lap Kei Engineering (Holdings)'s value of 10.87% is 278.7% above this industry median. Based on the distribution chart, Lap Kei Engineering (Holdings) ranks #591 out of 1787 companies in the Construction industry, which is above the industry midpoint. Overall, Lap Kei Engineering (Holdings) has a GF Score™ of 48/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lap Kei Engineering (Holdings)'s ROA % compare to PWR and FIX?
According to the Construction industry distribution chart, Lap Kei Engineering (Holdings) ranks #591 out of 1787 companies for ROA %. This puts Lap Kei Engineering (Holdings) in the upper half of its industry. The industry median ROA % is 2.87. Lap Kei Engineering (Holdings)'s value of 10.87% is 278.7% above this benchmark. While the company's 10-year median is 4.62 vs. the industry median of 2.87, Lap Kei Engineering (Holdings) 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 Construction company?
The median ROA % among Construction companies is 2.87, based on 1,787 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. Lap Kei Engineering (Holdings)'s current ROA % of 10.87% is 278.7% 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 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 Lap Kei Engineering (Holdings) and its competitors. For the Construction industry, the median ROA % is 2.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lap Kei Engineering (Holdings)'s current ROA % is 10.87%, which is 135% above median its own 10-year median of 4.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lap Kei Engineering (Holdings) stock overvalued right now?
Based on GuruFocus' analysis, Lap Kei Engineering (Holdings) (HKSE:01690) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.05, compared to a current price of HK$0.13 — trading 158% above its estimated fair value. The current ROA % is 10.87%, which is 135% above median its 10-year median of 4.62 and 278.7% above the Construction industry median of 2.87. Lap Kei Engineering (Holdings)'s overall GF Score™ is 48/100 with 3 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 Lap Kei Engineering (Holdings) (HKSE:01690), the current ROA % is 10.87% 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 Lap Kei Engineering (Holdings) (HKSE:01690) Overvalued in 2026?
Based on GuruFocus' analysis, Lap Kei Engineering (Holdings) stock appears to be overvalued.
The current stock price of HK$0.13 is trading 158% above its estimated GF Value™ of HK$0.05.
GuruFocus considers Lap Kei Engineering (Holdings) to be Significantly Overvalued.
Key valuation signals for HKSE:01690:
ROA %: 10.87% (135% above median its 10-year median of 4.62)
GF Value™: HK$0.05 vs. price of HK$0.13 (158% above fair value)
Industry Position: 278.7% above the Construction median (#591 of 1787)
No single metric tells the full story. See the HKSE:01690 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lap Kei Engineering (Holdings) Ltd provides engineering services for building services systems. The company is organized into the principal operating divisions of the building services engineering work division and maintenance, repair; and maintenance, repair, and other services division. The building services engineering work division, which is the key revenue-generating segment, comprises the provision of building services engineering work, including mechanical ventilation and air-conditioning systems, electrical systems, plumbing and drainage systems, fire systems, and other related works. Maintenance, repair, & other services involve the provision of maintenance and repair services for building services systems and the replacement of parts. It derives its prime revenue from Hong Kong.
48GF Score
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