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Chu Kong Petroleum and Natural Gas Steel Pipe Holdings (HKSE:01938) 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.
Chu Kong Petroleum and Natural Gas Steel Pipe Holdings ROA % Related Terms
Chu Kong Petroleum and Natural Gas Steel Pipe 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.
Chu Kong Petroleum and Natural Gas Steel Pipe Holdings ROA % Chart
Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Annual Data
* 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.
Chu Kong Petroleum and Natural Gas Steel Pipe Holdings ROA % vs Steel 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.
Chu Kong Petroleum and Natural Gas Steel Pipe Holdings (HKSE:01938) has a ROA % of 2.46% 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 Chu Kong Petroleum and Natural Gas Steel Pipe Holdings and its competitors. This is 402% above median its historical median of 0.49. According to the industry distribution chart, Chu Kong Petroleum and Natural Gas Steel Pipe Holdings ranks #200 out of 633 companies in the Steel industry, placing it in the top 31.6%.
Is Chu Kong Petroleum and Natural Gas Steel Pipe Holdings' ROA % too high?
Chu Kong Petroleum and Natural Gas Steel Pipe Holdings' current ROA % of 2.46% is 402% above median its 10-year median of 0.49. The Steel industry median ROA % is 1.98. Chu Kong Petroleum and Natural Gas Steel Pipe Holdings' value of 2.46% is 24.2% above this industry median. Based on the distribution chart, Chu Kong Petroleum and Natural Gas Steel Pipe Holdings ranks #200 out of 633 companies in the Steel industry, which is above the industry midpoint. Overall, Chu Kong Petroleum and Natural Gas Steel Pipe Holdings has a GF Score™ of 46/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chu Kong Petroleum and Natural Gas Steel Pipe Holdings' ROA % compare to NUE and STLD?
According to the Steel industry distribution chart, Chu Kong Petroleum and Natural Gas Steel Pipe Holdings ranks #200 out of 633 companies for ROA %. This puts Chu Kong Petroleum and Natural Gas Steel Pipe Holdings in the upper half of its industry. The industry median ROA % is 1.98. Chu Kong Petroleum and Natural Gas Steel Pipe Holdings' value of 2.46% is 24.2% above this benchmark. While the company's 10-year median is 0.49 vs. the industry median of 1.98, Chu Kong Petroleum and Natural Gas Steel Pipe 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 Steel company?
The median ROA % among Steel companies is 1.98, based on 633 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. Chu Kong Petroleum and Natural Gas Steel Pipe Holdings's current ROA % of 2.46% is 24.2% 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 Chu Kong Petroleum and Natural Gas Steel Pipe Holdings and its competitors. For the Steel industry, the median ROA % is 1.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chu Kong Petroleum and Natural Gas Steel Pipe Holdings's current ROA % is 2.46%, which is 402% above median its own 10-year median of 0.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chu Kong Petroleum and Natural Gas Steel Pipe Holdings stock overvalued right now?
Based on GuruFocus' analysis, Chu Kong Petroleum and Natural Gas Steel Pipe Holdings (HKSE:01938) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$0.17, compared to a current price of HK$0.22 — trading 27.1% above its estimated fair value. The current ROA % is 2.46%, which is 402% above median its 10-year median of 0.49 and 24.2% above the Steel industry median of 1.98. Chu Kong Petroleum and Natural Gas Steel Pipe Holdings' overall GF Score™ is 46/100 with 6 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 Chu Kong Petroleum and Natural Gas Steel Pipe Holdings (HKSE:01938), the current ROA % is 2.46% 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 Chu Kong Petroleum and Natural Gas Steel Pipe Holdings (HKSE:01938) Overvalued in 2026?
Based on GuruFocus' analysis, Chu Kong Petroleum and Natural Gas Steel Pipe Holdings stock appears to be overvalued.
The current stock price of HK$0.22 is trading 27.1% above its estimated GF Value™ of HK$0.17.
GuruFocus considers Chu Kong Petroleum and Natural Gas Steel Pipe Holdings to be Modestly Overvalued.
Key valuation signals for HKSE:01938:
ROA %: 2.46% (402% above median its 10-year median of 0.49)
GF Value™: HK$0.17 vs. price of HK$0.22 (27.1% above fair value)
Industry Position: 24.2% above the Steel median (#200 of 633)
No single metric tells the full story. See the HKSE:01938 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Ltd operates in the steel pipe business. The group is involved in its key revenue-generating business which is to manufacture and sell welded steel pipes and the provision of related manufacturing services. The group's steel pipes are mainly used for energy transmission including oil and gas transmission pipelines, deep-sea pipelines, city gas networks, petrochemicals, mining, infrastructure construction, offshore engineering, steel structures, and water utilities industries. Further, it is also involved in the development of properties for sale; and property investment activities. The group has a business presence in Mainland China and other countries, of which maximum revenue is derived from Africa.
46GF Score
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