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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Ngai Hing Hong Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 0.77%.
As of today (2026-08-11), Ngai Hing Hong Co's WACC % is 2.78%. Ngai Hing Hong Co's ROC % is 2.33% (calculated using TTM income statement data).
Ngai Hing Hong Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Ngai Hing Hong Co's WACC % is 2.78%. Ngai Hing Hong Co's ROC % is 2.33% (calculated using TTM income statement data).
Ngai Hing Hong Co 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.
Ngai Hing Hong Co ROC % Related Terms
Ngai Hing Hong Co ROC % Historical Data
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The historical data trend for Ngai Hing Hong Co's ROC % 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.
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.
Ngai Hing Hong Co (HKSE:01047) has a ROC % of 0.77% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Ngai Hing Hong Co and its competitors.
Is Ngai Hing Hong Co's ROC % too high?
Ngai Hing Hong Co's current ROC % is 0.77%. The Chemicals industry median ROC % is 4.54. Ngai Hing Hong Co's value of 0.77% is 83% below this industry median. Overall, Ngai Hing Hong Co has a GF Score™ of 30/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ngai Hing Hong Co's ROC % compare to LIN and SHW?
Ngai Hing Hong Co's ROC % of 0.77% can be compared against companies in the Chemicals industry. The industry median ROC % is 4.54. Ngai Hing Hong Co's value of 0.77% is 83% below 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 a Chemicals company?
The median ROC % among Chemicals companies is 4.54, based on 1,581 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. Ngai Hing Hong Co's current ROC % of 0.77% is 83% below 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 Ngai Hing Hong Co and its competitors. For the Chemicals industry, the median ROC % is 4.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ngai Hing Hong Co's current ROC % is 0.77%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ngai Hing Hong Co stock overvalued right now?
Based on GuruFocus' analysis, Ngai Hing Hong Co (HKSE:01047) is currently considered Fairly Valued. The stock's GF Value™ is HK$0.36, compared to a current price of HK$0.34 — trading 5.6% below its estimated fair value. The current ROC % is 0.77% and 83% below the Chemicals industry median of 4.54. Ngai Hing Hong Co's overall GF Score™ is 30/100 with 8 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 Ngai Hing Hong Co (HKSE:01047), the current ROC % is 0.77% 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 Ngai Hing Hong Co (HKSE:01047) Overvalued in 2026?
Based on GuruFocus' analysis, Ngai Hing Hong Co stock appears to be undervalued.
The current stock price of HK$0.34 is trading 5.6% below its estimated GF Value™ of HK$0.36.
GuruFocus considers Ngai Hing Hong Co to be Fairly Valued.
Key valuation signals for HKSE:01047:
ROC %: 0.77%
GF Value™: HK$0.36 vs. price of HK$0.34 (5.6% below fair value)
No single metric tells the full story. See the HKSE:01047 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ngai Hing Hong Co Ltd is a Hong Kong-based investment holding company. Along with its subsidiaries, the company is involved in the rubber and plastic business sectors. The company is principally engaged in the manufacturing and trading of plastic materials, pigments, colorants, compounded plastic resins, and engineering plastic products. The business of this company is divided into various segments that include Trading, Colorants, Engineering Plastics, and Others. A substantial portion of the company's overall revenue is generated from its Trading business which is involved in the trading of plastic materials.
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