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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. China Hongguang Holdings's annualizedNet Income for the quarter that ended in Dec. 2025 was HK$61.9 Mil.
China Hongguang Holdings's average Total Assets over the quarter that ended in Dec. 2025 was HK$602.3 Mil. Therefore, China Hongguang Holdings's annualized ROA % for the quarter that ended in Dec. 2025 was 10.27%.
The historical rank and industry rank for China Hongguang Holdings's ROA % or its related term are showing as below:
HKSE:08646'
s ROA % Range Over the Past 10 Years
Min: 4.6 Med: 11.22 Max: 24.6
Current: 11.03
During the past 9 years, China Hongguang Holdings's highest ROA % was 24.60%. The lowest was 4.60%. And the median was 11.22%.
HKSE:08646's ROA % is ranked better than 90.67% of 1780
companies
in the Construction industry
Industry Median: 2.87
vs HKSE:08646: 11.03
China Hongguang Holdings (HKSE:08646) 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.
* 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 Building Products & Equipment subindustry, China Hongguang 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 Hongguang Holdings ROA % vs Construction Industry
For the Construction industry and Industrials sector, China Hongguang Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where China Hongguang 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.
China Hongguang Holdings (HKSE:08646) has a ROA % of 10.27% 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 China Hongguang Holdings and its competitors. This is near median its historical median of 11.22. Over the past decade, China Hongguang Holdings' ROA % has ranged from 4.60 to 24.60. According to the industry distribution chart, China Hongguang Holdings ranks #166 out of 1780 companies in the Construction industry, placing it in the top 9.3%.
Is China Hongguang Holdings' ROA % too high?
China Hongguang Holdings' current ROA % of 10.27% is near median its 10-year median of 11.22. Over the past 10 years, this metric has ranged from a low of 4.60 to a high of 24.60. The Construction industry median ROA % is 2.87. China Hongguang Holdings' value of 10.27% is 257.8% above this industry median. Based on the distribution chart, China Hongguang Holdings ranks #166 out of 1780 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, China Hongguang Holdings has a GF Score™ of 48/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China Hongguang Holdings' ROA % compare to TT and JCI?
According to the Construction industry distribution chart, China Hongguang Holdings ranks #166 out of 1780 companies for ROA %. This places China Hongguang Holdings in the top 9% of its industry — outperforming the majority of peers. The industry median ROA % is 2.87. China Hongguang Holdings' value of 10.27% is 257.8% above this benchmark. Historically, China Hongguang Holdings' own ROA % has ranged from 4.60 to 24.60 over the past decade. While the company's 10-year median is 11.22 vs. the industry median of 2.87, China Hongguang 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 1,780 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 Hongguang Holdings's current ROA % of 10.27% is 257.8% 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 Hongguang 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. China Hongguang Holdings's current ROA % is 10.27%, which is near median its own 10-year median of 11.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Hongguang Holdings stock overvalued right now?
Based on GuruFocus' analysis, China Hongguang Holdings (HKSE:08646) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$0.18, compared to a current price of HK$0.20 — trading 13.3% above its estimated fair value. The current ROA % is 10.27%, which is near median its 10-year median of 11.22 and 257.8% above the Construction industry median of 2.87. China Hongguang Holdings' overall GF Score™ is 48/100 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 China Hongguang Holdings (HKSE:08646), the current ROA % is 10.27% 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 China Hongguang Holdings (HKSE:08646) Overvalued in 2026?
Based on GuruFocus' analysis, China Hongguang Holdings stock appears to be overvalued.
The current stock price of HK$0.20 is trading 13.3% above its estimated GF Value™ of HK$0.18.
GuruFocus considers China Hongguang Holdings to be Modestly Overvalued.
Key valuation signals for HKSE:08646:
ROA %: 10.27% (near median its 10-year median of 11.22)
GF Value™: HK$0.18 vs. price of HK$0.20 (13.3% above fair value)
Industry Position: 257.8% above the Construction median (#166 of 1780)
No single metric tells the full story. See the HKSE:08646 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Hongguang Holdings Ltd is principally engaged in the manufacture and sale of glass products in the People's Republic of China. The Group operates in Southern China and, leveraging its technological advancements, particularly in coating technologies, has been actively transforming its business. Its coated glass products, including ITO conductive glass manufactured through fully automated magnetron sputtering production lines, are increasingly applied in the broader optoelectronic sector, such as mobile consumer electronics, display technologies, optical lenses, and automotive applications. The Group generates revenue from the PRC.
48GF Score
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