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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. China Hongbao Holdings's annualizedNet Income for the quarter that ended in Mar. 2026 was HK$38.1 Mil.
China Hongbao Holdings's average Total Assets over the quarter that ended in Mar. 2026 was HK$77.5 Mil. Therefore, China Hongbao Holdings's annualized ROA % for the quarter that ended in Mar. 2026 was 49.16%.
The historical rank and industry rank for China Hongbao Holdings's ROA % or its related term are showing as below:
HKSE:08316'
s ROA % Range Over the Past 10 Years
Min: -69.06 Med: -23.01 Max: 7.74
Current: 6.51
During the past 12 years, China Hongbao Holdings's highest ROA % was 7.74%. The lowest was -69.06%. And the median was -23.01%.
HKSE:08316's ROA % is ranked better than 75.36% of 1786
companies
in the Construction industry
Industry Median: 2.86
vs HKSE:08316: 6.51
China Hongbao Holdings (HKSE:08316) 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 (Mar. 2026) net income data. The Revenue data used here is two times the semi-annual (Mar. 2026) 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.
* 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, China Hongbao 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.
China Hongbao Holdings ROA % vs Construction Industry
For the Construction industry and Industrials sector, China Hongbao Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where China Hongbao 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 (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
China Hongbao Holdings (HKSE:08316) has a ROA % of 49.16% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on China Hongbao Holdings and its competitors. According to the industry distribution chart, China Hongbao Holdings ranks #440 out of 1786 companies in the Construction industry, placing it in the top 24.6%.
Is China Hongbao Holdings' ROA % too high?
China Hongbao Holdings' current ROA % is 49.16%. The Construction industry median ROA % is 2.86. China Hongbao Holdings' value of 49.16% is 1618.9% above this industry median. Based on the distribution chart, China Hongbao Holdings ranks #440 out of 1786 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, China Hongbao Holdings has a GF Score™ of 39/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does China Hongbao Holdings' ROA % compare to PWR and FIX?
According to the Construction industry distribution chart, China Hongbao Holdings ranks #440 out of 1786 companies for ROA %. This places China Hongbao Holdings in the top 25% of its industry — outperforming the majority of peers. The industry median ROA % is 2.86. China Hongbao Holdings' value of 49.16% is 1618.9% above this benchmark. 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 2.86, based on 1,786 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. China Hongbao Holdings's current ROA % of 49.16% is 1618.9% 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 China Hongbao Holdings and its competitors. For the Construction industry, the median ROA % is 2.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Hongbao Holdings's current ROA % is 49.16%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Hongbao Holdings stock overvalued right now?
Based on GuruFocus' analysis, China Hongbao Holdings (HKSE:08316) is currently considered Fairly Valued. The stock's GF Value™ is HK$0.23, compared to a current price of HK$0.22 — trading 4.3% below its estimated fair value. The current ROA % is 49.16% and 1618.9% above the Construction industry median of 2.86. China Hongbao Holdings' overall GF Score™ is 39/100 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 China Hongbao Holdings (HKSE:08316), the current ROA % is 49.16% as of Mar. 2026. 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 China Hongbao Holdings (HKSE:08316) Overvalued in 2026?
Based on GuruFocus' analysis, China Hongbao Holdings stock appears to be undervalued.
The current stock price of HK$0.22 is trading 4.3% below its estimated GF Value™ of HK$0.23.
GuruFocus considers China Hongbao Holdings to be Fairly Valued.
Key valuation signals for HKSE:08316:
ROA %: 49.16%
GF Value™: HK$0.23 vs. price of HK$0.22 (4.3% below fair value)
Industry Position: 1618.9% above the Construction median (#440 of 1786)
No single metric tells the full story. See the HKSE:08316 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Hongbao Holdings Ltd is an investment holding company. Along with its subsidiaries, it is principally engaged in foundation and other construction business as a subcontractor in Hong Kong. Its customers principally comprise main contractors and subcontractors. In addition, it is involved in internet services (including O2O Commerce and supply chain management) business in the PRC. The group's reportable operating segments are Foundation and other construction works, which derive maximum revenue, and Internet services. Geographically, it generates maximum revenue from Hong Kong, followed by Mainland China.
39GF Score
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