ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Shandong Hi-Speed Holdings Group's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 2.18%.
As of today (2026-07-11), Shandong Hi-Speed Holdings Group's WACC % is 2.10%. Shandong Hi-Speed Holdings Group's ROC % is 0.94% (calculated using TTM income statement data).
Shandong Hi-Speed Holdings Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Shandong Hi-Speed Holdings Group (HKSE:00412) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Shandong Hi-Speed Holdings Group's WACC % is 2.10%. Shandong Hi-Speed Holdings Group's ROC % is 0.94% (calculated using TTM income statement data).
Shandong Hi-Speed Holdings Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of 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.
Shandong Hi-Speed Holdings Group ROC % Related Terms
Shandong Hi-Speed Holdings Group ROC % 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.
Note:
The Operating Income data used here is two times the semi-annual (Dec. 2025) data.
The tax rate is limited to between 0% and 100%.
* 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.
Shandong Hi-Speed Holdings Group (HKSE:00412) has a ROC % of 2.18% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Shandong Hi-Speed Holdings Group and its competitors.
Is Shandong Hi-Speed Holdings Group's ROC % too high?
Shandong Hi-Speed Holdings Group's current ROC % is 2.18%. The Asset Management industry median ROC % is 1.17. Shandong Hi-Speed Holdings Group's value of 2.18% is 86.3% above this industry median. Overall, Shandong Hi-Speed Holdings Group has a GF Score™ of 55/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Shandong Hi-Speed Holdings Group's ROC % compare to BLK and BX?
Shandong Hi-Speed Holdings Group's ROC % of 2.18% can be compared against companies in the Asset Management industry. The industry median ROC % is 1.17. Shandong Hi-Speed Holdings Group's value of 2.18% is 86.3% 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 ROC % for an Asset Management company?
The median ROC % among Asset Management companies is 1.17, based on 714 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Shandong Hi-Speed Holdings Group's current ROC % of 2.18% is 86.3% 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 ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Shandong Hi-Speed Holdings Group and its competitors. For the Asset Management industry, the median ROC % is 1.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shandong Hi-Speed Holdings Group's current ROC % is 2.18%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shandong Hi-Speed Holdings Group stock overvalued right now?
Based on GuruFocus' analysis, Shandong Hi-Speed Holdings Group (HKSE:00412) is currently considered Possible Value Trap. The stock's GF Value™ is HK$7.08, compared to a current price of HK$0.45 — trading 93.6% below its estimated fair value. The current ROC % is 2.18% and 86.3% above the Asset Management industry median of 1.17. Shandong Hi-Speed Holdings Group's overall GF Score™ is 55/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Shandong Hi-Speed Holdings Group (HKSE:00412), the current ROC % is 2.18% 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 Shandong Hi-Speed Holdings Group (HKSE:00412) Overvalued in 2026?
Based on GuruFocus' analysis, Shandong Hi-Speed Holdings Group stock appears to be undervalued.
The current stock price of HK$0.45 is trading 93.6% below its estimated GF Value™ of HK$7.08.
GuruFocus considers Shandong Hi-Speed Holdings Group to be Possible Value Trap.
Key valuation signals for HKSE:00412:
ROC %: 2.18%
GF Value™: HK$7.08 vs. price of HK$0.45 (93.6% below fair value)
Industry Position: 86.3% above the Asset Management median
No single metric tells the full story. See the HKSE:00412 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shandong Hi-Speed Holdings Group Business Description
Shandong Hi-Speed Holdings Group Ltd is an investment holding company & its segments include the Industrial investment segment in operations of the industrial investment-related business; the Standard investment segment in trading of listed securities & listed bonds for interest income & capital appreciation; the Non-standard investment segment in direct investment business, investments in debts instruments, unlisted bonds & investment funds; and Licensed financial services segment in provision of money lending services, securities brokerage services, asset management services & asset trading platform.
55GF Score
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