Launch Tech CoHKSE:02488 -0.58%72 ROA % is 13.85% as of Dec. 2025, which is 162% above its 10-year median of 5.28. GuruFocus rates HKSE:02488 with a GF Score™ of 72/100 and a GF Value™ of HK$6.49 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,335 Vehicles & Parts companies, Launch Tech Co ranks better than 96.93% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Launch Tech Co's annualizedNet Income for the quarter that ended in Dec. 2025 was HK$330 Mil.
Launch Tech Co's average Total Assets over the quarter that ended in Dec. 2025 was HK$2,385 Mil. Therefore, Launch Tech Co's annualized ROA % for the quarter that ended in Dec. 2025 was 13.85%.
The historical rank and industry rank for Launch Tech Co's ROA % or its related term are showing as below:
HKSE:02488'
s ROA % Range Over the Past 10 Years
Min: -8.51 Med: 5.28 Max: 17.77
Current: 16.43
During the past 13 years, Launch Tech Co's highest ROA % was 17.77%. The lowest was -8.51%. And the median was 5.28%.
HKSE:02488's ROA % is ranked better than 96.93% of 1335
companies
in the Vehicles & Parts industry
Industry Median: 2.95
vs HKSE:02488: 16.43
Launch Tech Co (HKSE:02488) 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.
Launch Tech Co ROA % Related Terms
Launch Tech Co ROA % Historical Data
* Premium members only.
The historical data trend for Launch Tech 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.
For the Auto Parts subindustry, Launch Tech 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.
Launch Tech Co ROA % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Launch Tech Co's ROA % distribution charts can be found below:
* The bar in red indicates where Launch Tech Co'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.
Launch Tech Co (HKSE:02488) has a ROA % of 13.85% 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 Launch Tech Co and its competitors. This is 162% above median its historical median of 5.28. According to the industry distribution chart, Launch Tech Co ranks #41 out of 1335 companies in the Vehicles & Parts industry, placing it in the top 3.1%.
Is Launch Tech Co's ROA % too high?
Launch Tech Co's current ROA % of 13.85% is 162% above median its 10-year median of 5.28. The Vehicles & Parts industry median ROA % is 2.95. Launch Tech Co's value of 13.85% is 369.5% above this industry median. Based on the distribution chart, Launch Tech Co ranks #41 out of 1335 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Launch Tech Co has a GF Score™ of 72/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Launch Tech Co's ROA % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Launch Tech Co ranks #41 out of 1335 companies for ROA %. This places Launch Tech Co in the top 3% of its industry — outperforming the majority of peers. The industry median ROA % is 2.95. Launch Tech Co's value of 13.85% is 369.5% above this benchmark. While the company's 10-year median is 5.28 vs. the industry median of 2.95, Launch Tech 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 2.95, based on 1,335 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. Launch Tech Co's current ROA % of 13.85% is 369.5% 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 Launch Tech Co and its competitors. For the Vehicles & Parts industry, the median ROA % is 2.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Launch Tech Co's current ROA % is 13.85%, which is 162% above median its own 10-year median of 5.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Launch Tech Co stock overvalued right now?
Based on GuruFocus' analysis, Launch Tech Co (HKSE:02488) is currently considered Fairly Valued. The stock's GF Value™ is HK$6.49, compared to a current price of HK$6.86 — trading 5.7% above its estimated fair value. The current ROA % is 13.85%, which is 162% above median its 10-year median of 5.28 and 369.5% above the Vehicles & Parts industry median of 2.95. Launch Tech Co's overall GF Score™ is 72/100 with 2 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 Launch Tech Co (HKSE:02488), the current ROA % is 13.85% 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 Launch Tech Co (HKSE:02488) Overvalued in 2026?
Based on GuruFocus' analysis, Launch Tech Co stock appears to be overvalued.
The current stock price of HK$6.86 is trading 5.7% above its estimated GF Value™ of HK$6.49.
GuruFocus considers Launch Tech Co to be Fairly Valued.
Key valuation signals for HKSE:02488:
ROA %: 13.85% (162% above median its 10-year median of 5.28)
GF Value™: HK$6.49 vs. price of HK$6.86 (5.7% above fair value)
Industry Position: 369.5% above the Vehicles & Parts median (#41 of 1335)
No single metric tells the full story. See the HKSE:02488 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Launch Tech Co Ltd principally engages in the provision of products and services serving the automotive aftermarket and the automobile industry mainly in the People's Republic of China and certain overseas countries. The Company has three reporting segments: i) Automotive diagnosis segment, ii) Europe Overseas Sales segment, and iii) U.S. overseas sales segment. The automotive diagnosis segment covers research and development, production and sales of automotive diagnostic and inspection products. The Europe Overseas Sales segment covers development and maintenance of European distributors and customers. The U.S. Overseas Sales segment covers development and maintenance of distributors and customers in the Americas. The majority of revenue is derived from the Automotive diagnosis segment.
72GF Score
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